The Company's Trend of Shifting to Cloud Services Increases, MTDL's Cloud Services Revenue Soared 87% YoY in the First Quarter
By : Nata Kesuma | Wednesday, April 19 2023 - 19:37 IWST
PT Metrodata Electronics Tbk (MTDL)’s
INDUSTRY.co.id - Jakarta, April 18th 2023 — The revenue of PT Metrodata Electronics Tbk (MTDL)’s cloud services soared 87% YoY in the first quarter of this year, in line with the shifting trend of companies' interest in Cloud services and increasing concern for cyberspace.
MTDL as a leading digital solution provider and technology innovator, continues to transform digitally after the pandemic. The company's effort to adapt to the digital world has pushed sales growth in the Solutions and Consulting unit, particularly in the financial institution, public sector, telecommunication and manufacturing sectors.
"We are committed to providing the best digital solutions to help our clients adapt to the ever- changing digital landscape," said Susanto Djaja, CEO of MTDL.
"Our focus on the Solutions and Consulting unit has resulted in significant growth in providing corporate customers with Information and Communication Technology (ICT) solutions such as cloud hyperscalers, cybersecurity, digital business platforms, and software subscriptions and SaaS."
Of the eight pillars of the Company's digital solutions, in the first quarter three pillars led with significant revenue growth, namely Cyber Security, Cloud Services and Digital Business Platform. As a whole, revenue from the eight pillars of MTDL digital solutions in this period grew by 40% YoY.
The eight pillars of digital solutions are Cloud Services, Data & AI, Hybrid IT Infrastructure, Cybersecurity, Business Applications, Digital Business Platforms, Consulting & Advisory Services, and Managed Services.
This growth was driven by an increase in ICT provision for corporate customers, including hyperscaler cloud services from global partners such as Azure, AWS, Google Cloud; cybersecurity services, digital business platforms, and software subscriptions as well as SaaS. In general, the Company sees that there has been a shift in market needs from the need for digital hardware to the need for Cloud services.
Acknowledge the trend of companies becoming more digitally, on April 11, 2023, a subsidiary of MTDL, PT Synnex Metrodata Indonesia (SMI) opened Cisco Meraki Experience Centers in Jakarta and Surabaya. Cisco Meraki is a cloud- based network solution owned by Cisco Systems that offers a variety of products and services that can be configured and managed online, such as wireless access points, Ethernet switches, security appliances, security cameras, and mobile device management.
"In the current pandemic situation, we continue to adapt and transform to meet customer needs. We have seen significant growth in the Solutions and Consulting business unit, so we are optimistic that ICT needs will continue to grow and MTDL will continue to innovate to meet these needs," said Susanto Djaja.
However, the consumer sector of the company's distribution business experienced a contraction as most individual TIK needs were fulfilled after the pandemic. In this case, the consumer sector contributes up to 50% of the Company's distribution business revenue. This trend reflects the need for future ICT updates as individual TIK requirements evolve, so MTDL believes consumer ICT needs will continue to grow.
In terms of financial performance, the company recorded a decline in sales and net income in the first quarter of 2023. However, Susanto is optimistic that the demand for ICT will continue to grow and lead to a recovery in the next quarter. The Company's total sales in the first quarter of 2023 amounted to IDR 4.5 trillion, down by 12.8% YoY, while net profit was at IDR 146.4 billion, down by 11.0% YoY.
Overall, Metrodata's commitment to digital transformation and providing the best solutions to its corporate clients has resulted in a successful shift towards the Solutions and Consulting unit. This is supported by the Company's commitment to improve its digital solutions and maintain its leadership position in the market.