A Comparison of the Financial Performance of Telecommunication Companies Listed on the Jakarta Islamic Index Before and Amidst the Covid-19 Pandemic

Abstract

Ever since the emergence of the Covid-19 virus in Wuhan, China in 2019, individuals have been compelled to carry out a majority of their activities from the comfort of their homes. This shift, coupled with the implementation of large-scale social restrictions (PSBB) later replaced by restrictions on community activities (PPKM), has resulted in a substantial increase in online community engagements. Consequently, there has been a surge in the demand for fast internet access. This growing necessity is expected to impact the profitability of companies providing internet services, consequently affecting their overall performance. Hence, this study aims to examine the disparity in the financial performance of telecommunication companies listed on the Jakarta Islamic Index ( JII) before and during the COVID-19 pandemic. The sampling technique employed in this research is saturated sampling, where the entire population of telecommunication companies is included, resulting in a sample size of 10 companies for the study. The paired t-test is utilized as the data analysis tool. The findings of this study indicate that there is no significant distinction in the financial performance of telecommunications companies listed on JII before and during the COVID-19 pandemic, as evidenced by measurements of the Current Ratio and Net Profit Margin. Keywords: financial performance, telecommunications companies, Covid-19