Business Diversification Sustains MTDL Revenue Growth of 12.4% in The 2nd Quarter – 2024

Information and Communication Technology Distribution Business Increases 16.4% YoY in Q2 - 2024

Jakarta, July 25^th, 2024 — An Information and Communication Technology (ICT) listed company which has two business fields, namely solutions & consulting and ICT distribution with almost 50 years of business experience, PT Metrodata Electronics Tbk (MTDL), again posted an increase in revenue in 1^st Semester 2024 to IDR10.5 trillion, or an increase of 12.4% compared to the same period in 2023 which amounted to IDR9.3 trillion. Consolidated net profit was also recorded to have increased to IDR276.1 billion compared to the previous year which was at IDR272.2 billion.

The Information and Communication Technology (ICT) distribution business unit, including smartphones, became the largest contributor to the Company's revenue or increased by 16.4% YoY to IDR 8.1 trillion in the 1^st Semester of 2024 compared to the previous year which amounted to IDR6.9 trillion. The growth of one of the Company's main businesses was mainly driven by the smartphone segment in the distribution unit which increased by 169.2% YoY.

Meanwhile, in the solutions and consulting business unit, are many business players are delaying investment in digital transformation, choosing to wait and see until after the third quarter - of 2024 after the change of government and more stable global conditions. Therefore, solution and consulting business revenue in the second quarter of 2024 reached IDR 2.8 trillion compared to the previous year of IDR 2.9 trillion.

"The achievement of increasing revenue in the second quarter of 2024 is thanks to our business diversification, which balances the contribution to both revenue and profit. We are optimistic that the second semester will improve because usually, MTDL sales from the ICT distribution and Solutions & Consulting business side will start to improve in the third quarter and the 4th quarter of each year," said MTDL President Director, Susanto Djaja.

In terms of main industrial sectors, financial services including banking, telecommunications, oil and gas and manufacturing are sectors that still need solution and consulting services as well as hardware and software updates that can be provided by MTDL. This is also the strength of MTDL's diversification not only in terms of the products it offers but also the solutions and variety of business sectors that MTDL serves.

MTDL's business diversification is also reflected in the contribution portion of Metrodata's 8 Digital Solution Pillars which rose to 63% of total order booking in the solutions & consulting business. In this case, Cloud, Business Applications, and Digital Business Platforms are the main revenue contributors, followed by Cybersecurity and other solution services.

In particular, until the second quarter of this year, the Company's Cloud business services recorded a significant growth rate, increasing by 39.8% YoY. The company sees that the growth of cloud business services will continue, considering that demand is still high while the number of customers moving to the cloud is still very minimal, and subscription cloud business systems will provide recurring income. Therefore, this sector still has enormous room for growth supported by the latest cloud-based solutions. The recurring revenue portion of the solutions & consulting business in the second quarter of 2024 was recorded at 52% of total solutions & consulting revenue.

"The need for IT products will continue to grow in line with the latest technological developments which require capable processors and components based on Artificial Intelligence with cyber security which will continue to open up opportunities for the MTDL business in the future, both from the distribution business and solutions & consulting. "As a company in the ICT sector with the largest turnover in Indonesia and almost 50 years of experience, we are optimistic that in 2024, despite many challenges, MTDL will still be able to grow healthily," said Susanto while closing the Q2-2024 performance release in Jakarta.