Indosat Ooredoo sees 7.9% revenue increase to IDR6.5 trillion amidst COVID-19

Indosat Ooredoo posted a 7.9% year-over-year increase in its total revenue of IDR6.5 trillion during the first quarter of 2020 (Q1 2020). Its cellular revenue increased by 10.6% to IDR 5.4 trillion, while its earnings before interest, tax, depreciation and amortisation reached IDR2.4 trillion, a 10.4% year-over-year improvement. According to a press release, Indosat Ooredoo’s cellular, multimedia data internet, and fixed telecommunication business each contributed 82%, 15%, and 3% respectively to the consolidated operating revenues for the period ended 31 March 2020.

Indosat Ooredoo also saw a net loss of IDR605.6 billion, which was an increase of IDR313.1 billion as compared to Q1 2019. The increase loss was primarily driven by one-off impact of the organisation rightsizing and loss on foreign exchange, according to the telco.

The telco reported a total of 56.2 million cellular subscribers by the end of March 2020, which is an increase of 5.4% as compared to Q1 2019. Its average revenue per user increased to IDR29,600 from previously IDR26,500 in the first quarter of 2019 (Q1 2019). It is added that this growth in revenue is driven mainly by a data traffic increase of 63% year-over-year.

Ahmad Al-Neama, president director and CEO of Indosat Ooredoo, said the telco is on track with its three years' turnaround plan, and it sees this positive momentum continuing in the coming quarters. Ahmad added that due to the COVID-19 pandemic, Indosat Ooredoo accelerated its network rollout plan to ensure its consumers can stay connected during this period. "Indosat Ooredoo has been taking steps to ensure that we support our employees, customers, and community in this challenging situation. We were amongst the first to implement virtual ways of working for our employees to ensure their health and safety. Steps have also been taken to support business continuity for enterprise customer and Indosat Ooredoo continues to support government initiatives in these tough times," he added.

Last month, Indosat Ooredoo launched its Ramadan campaign to lift everyone’s spirits amid the COVID-19 pandemic. Titled "Silaturahmi Setiap Hari" which means friendship every day, the spot features four young Indonesian singers - Hindia, Sal Priadi, Kunto Aji and Yura Yunita. The campaign from planning to execution was done without a single physical meeting between the clients, crew, agency, director, cinematographer and talents. In addition, the campaign also looked to promote Indosat's newest product Freedom Kuota Harian internet package. 

Meanwhile in March, the telco appointed Mata Angin as its integrated creative agency after a pitch first called earlier in 2019, which saw agencies from major holding groups in Indonesia take part. In a statement to Marketing Interactive previously, the brand said "the appointment is quite unpredictable, considering that Mata Angin is the only medium sized local agency competing in an open and competitive pitch against some of the most prominent multinational agencies." But, the agency was led by 100% young local experts who "had an extensive range of achievements in handling multi industry brands including eCommerce, FMCG, cigarettes, and banks."

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