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Telkom Indonesia(TLK) - 2023 Q1 - Earnings Call Transcript
2023-05-08 12:03
Financial Data and Key Metrics - Telkomsel reported a 2.5% YoY increase in revenue and a 5.5% YoY increase in net income for Q1 2023 [7] - EBITDA decreased by 2% YoY due to significant spectrum costs allocated to maintain competitive advantages in the mobile business [7] - Telkomsel's EBITDA margin remained stable at 55.7% [8] - IndiHome's revenue grew by 5% YoY, contributing IDR7.2 trillion to total consolidated revenue [28] - Enterprise segment revenue grew by 7.8% YoY to IDR4.5 trillion [10] - Wholesale & International business segment revenue increased by 4.0% YoY to IDR4 trillion [29] Business Line Performance - Mobile and fixed broadband segments dominated revenue contributions due to favorable competition and new customer growth [26] - Data, internet, and IT services grew by 5.5% YoY [26] - IndiHome's blended ARPU was diluted to IDR264,000, with subscriber growth of 7% YoY, reaching 9.4 million customers [28] - Enterprise segment growth was driven by connectivity, digital solutions, and satellite businesses [10] - Wholesale business growth was supported by international wholesale voice and digital infrastructure [29] Market Performance - Fixed broadband competition intensified, particularly in high-income household segments served by IndiHome and competitors [9] - Telkomsel maintained healthy revenue growth of 1.1% YoY in the mobile segment [8] - The company faced high competition in big cities, with competitors offering attractive pricing and high-speed internet [20] Strategic Direction and Industry Competition - Telkom Group is focusing on B2B and B2C markets, emphasizing digital connectivity, platforms, and business [5] - The company is implementing the "Five Bold Moves" strategy, including the FMC initiative and InfraCo project [11][14] - Telkomsel aims to improve internal capabilities in data center cloud, B2B IT services, and digital business [6] - The company is exploring infra-sharing opportunities and positioning InfraCo as a solution to industry challenges [14] - Data center and cloud businesses are a key focus, with significant demand growth [15] Management Commentary on Operating Environment and Future Outlook - Management highlighted the impact of inflation, which reached nearly 5% in Q1 2023, affecting customer offerings [38] - The company expects to maintain low- to mid-single-digit growth in wireless revenue for 2023 [86] - Synergy benefits from the IndiHome-Telkomsel merger are expected to yield IDR5 trillion in additional EBITDA by 2027 [82][83] - The company is optimistic about growth in the second half of 2023, driven by fixed mobile convergence and other business initiatives [121] Other Important Information - Telkom signed a conditional spin-off agreement (CSA) with Telkomsel, transferring IndiHome business to Telkomsel [30] - Telkom's shareholding in Telkomsel increased from 65% to 69.9%, with Singtel diluting its stake to 30.1% [12] - The company expects to add 21 megawatts to its data center capacity in 2023 [54] Q&A Session Summary Question: What is driving the sequential decline in mobile revenue, and is mid-single-digit growth still targeted for 2023? - The decline is attributed to seasonal impacts and legacy revenue declines, which still contribute 15% of total revenue [97] - The company maintains its guidance for low- to mid-single-digit growth in mobile revenue for 2023 [86] Question: What are the synergy benefits from the IndiHome-Telkomsel merger? - Synergy benefits are expected to reach IDR5 trillion in additional EBITDA by 2027, with CapEx savings reducing from 25% to 20-22% of revenue [82][83] Question: How is inflation impacting price increases and growth prospects? - Inflation has led to cautious price adjustments, with selective portfolio updates to balance competitiveness and customer affordability [118] Question: What is the outlook for legacy revenue alignment with peers? - Legacy revenue is expected to stabilize at 5-10% of total revenue within the next 2-2.5 years [115] Question: What is the guidance for 2023? - The company maintains its guidance, expecting growth acceleration in the second half of 2023, driven by fixed mobile convergence and other initiatives [121]
Telkom Indonesia(TLK) - 2023 Q1 - Earnings Call Presentation
2023-05-08 07:49
Corporate Presentation 1Q23 Results PT Telkom Indonesia (Persero) Tbk May 2023 Disclaimer This document may contain forward-looking statements within the meaning of safe-harbor. Actual results could differ materially from projections, estimations or expectations. These may involve risks and uncertainties and may cause actual results and development to differ substantially from those expressed or implied in the statements. The company does not guarantee that any action, which may have been taken in reliance ...
Telkom Indonesia(TLK) - 2022 Q4 - Annual Report
2023-04-06 20:26
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...
Telkom Indonesia(TLK) - 2022 Q4 - Annual Report
2023-04-06 17:12
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of April, 2023 Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Exact name of Registrant as specified in its charter) Telecommunications Indonesia (A state-owned public limited liability Company) (Translation of registrant's name into English) Jl. Japati No. 1 Bandung 40133, Indonesia (Addre ...
Telkom Indonesia(TLK) - 2023 Q1 - Quarterly Report
2023-04-05 16:33
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of April, 2023 Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Exact name of Registrant as specified in its charter) Telecommunications Indonesia (A state-owned public limited liability Company) (Translation of registrant's name into English) Jl. Japati No. 1 Bandung 40133, Indonesia (Addre ...
Telkom Indonesia(TLK) - 2022 Q3 - Earnings Call Transcript
2022-11-01 19:57
Financial Data and Key Metrics - Revenue grew by 2.7% in the first 9 months of 2022, with EBITDA and net income margins at 54.6% and 15.2%, respectively [9] - Mobile segment revenue grew by 1.6% YoY, with EBITDA margin at 37.1% and net income margin at 25.4% [11] - Fixed broadband business (IndiHome) added 138,000 customers, reaching 9 million subscribers, contributing IDR 20.9 trillion in revenue with a growth of 6.4% and a stable blended ARPU of IDR 269,000 [11] - Enterprise segment revenue declined by 0.8% YoY to IDR 13.7 trillion due to the transfer of data center business, but showed a QoQ growth of 10.5% [12] - Wholesale and international business revenue increased by 7.6% YoY to IDR 11.3 trillion, driven by international wholesale voice and digital business [13] Business Line Performance - Mobile segment focused on maintaining customer value, resulting in better customer profiles and a 3.8% QoQ improvement in ARPU [10][27] - IndiHome (fixed broadband) maintained strong growth despite intense competition, with a focus on quality customer acquisition [11][41] - Enterprise segment saw growth in digital IT services and connectivity, despite a slight YoY decline due to business transfers [12] - Wholesale and international business benefited from international voice and digital services, including A2P (Application-to-Person) messaging [13] - Mitratel (tower business) managed over 35,000 towers with a tenancy ratio of 1.44, expanding into fiber-to-the-tower business [13][14] Market Performance - Mobile industry competition became more rational, with Telkomsel focusing on customer value and personalization [10] - Fixed broadband market faced increased competition, but IndiHome maintained its position as the market leader [11][41] - Wholesale and international business saw growth in international voice and digital services, driven by demand for A2P messaging [13] Strategic Direction and Industry Competition - The company is exploring collaborations in data center and cloud business with Microsoft and Singtel, aiming to diversify into retail platforms and services [8][9] - InfraCo initiative aims to optimize infrastructure assets, improve CapEx efficiency, and unlock value through infrastructure sharing [15][20] - The company is pursuing a 5 Bold Moves strategy, focusing on FMC (Fixed-Mobile Convergence), Data Center Co, and InfraCo [15] - Data center business is being consolidated under PT Telkom Data Ekosistem, with plans to complete restructuring by 2024 [17][18] Management Commentary on Operating Environment and Future Outlook - The company faces a challenging macroeconomic environment post-COVID-19, with higher inflation and interest rates impacting Indonesia [7] - Management is focused on maintaining healthy growth in mobile and fixed broadband segments, despite competitive pressures [10][41] - The company sees opportunities in the tower business due to increasing demand for cellular data and upcoming 5G technology [14] - Management is optimistic about the potential of fixed-mobile convergence (FMC) to drive efficiency and customer loyalty [42][71] Other Important Information - The company accelerated depreciation of legacy copper-based technology, impacting IDR 1.584 trillion in Q2 2022 [44][45] - Data center business contributed IDR 1.2 trillion in revenue for the first 9 months of 2022 [79] Q&A Session Summary Question: Subscriber decline in mobile segment - The decline in mobile subscribers is part of a consolidation strategy to focus on quality customers, resulting in a 3.8% QoQ ARPU improvement [26][27] - The consolidation process will continue to improve customer quality and reduce value-seeking customers [29] Question: Strategic intent behind InfraCo - InfraCo aims to optimize infrastructure investments, comply with new regulations, and unlock value through infrastructure sharing [31][32][33] - The company is considering private and strategic investors for InfraCo, with no immediate plans for an IPO [57] Question: Mobile pricing outlook - Mobile pricing adjustments are on hold due to macroeconomic conditions, with a focus on maintaining competitiveness [38][39] - The company is exploring optimal pricing levels while considering customer purchasing power and inflation [48][50] Question: Fixed broadband growth slowdown - Growth in fixed broadband slowed due to increased competition, but the company remains selective in acquiring quality customers [40][41] - The company believes in the long-term potential of the fixed broadband market, with current household penetration at 15% [43] Question: Data center business valuation - The data center business is expected to achieve EBITDA margins of 40%-50% at optimal utilization, with current revenue contribution at IDR 1.2 trillion [76][79] - The company is on track with data center consolidation and development, with plans to list the business in the future [59] Question: Fixed-mobile convergence (FMC) strategy - FMC aims to create value for customers by integrating fixed and mobile services, rather than offering discounts [62] - The company expects cost synergies from FMC, particularly in marketing and CapEx optimization [74][75]
Telkom Indonesia(TLK) - 2022 Q3 - Quarterly Report
2022-10-28 16:03
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2022 Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Exact name of Registrant as specified in its charter) Telecommunications Indonesia (A state-owned public limited liability Company) (Translation of registrant's name into English) Jl. Japati No. 1 Bandung 40133, Indonesia (Addr ...
Telkom Indonesia(TLK) - 2022 Q2 - Earnings Call Transcript
2022-08-03 06:29
Financial Data and Key Metrics - Revenue increased by 3.6%, EBITDA by 4.5%, and net income by 6.9% year-on-year in the first half of 2022 [11] - Telkomsel maintained a healthy EBITDA margin of 57.1% and a net income margin of 26.2% [11] - Unrealized gain of IDR305 billion from equity investment in GoTo shares [11] Business Line Data and Key Metrics - IndiHome revenue reached IDR13.8 trillion with 8.9 million customers, adding 288,000 new customers [12] - Enterprise segment contributed IDR8.7 trillion in revenue, driven by B2B IT Services and Enterprise Connectivity solutions [12] - Wholesale segment revenue increased by 14.6% year-on-year to IDR7.9 trillion [13] Market Data and Key Metrics - Telkom launched a second international communication gateway in Manado, enhancing connectivity for eastern Indonesia and the new capital city [9] - Completion of Phase 1 of the HyperScale Data Center (HDC) and ongoing development of submarine cables Bifrost and SEA-ME-WE 6, expected to be completed in 2024 and 2025 respectively [13][14] Company Strategy and Industry Competition - Telkom is transforming from a telco to a digital telco company, focusing on digital business growth and offsetting legacy revenue decline [9][11] - The company is enhancing its data center business with the completion of the first phase of the HyperScale Data Center, leveraging integrated networks for future business digitization needs [14] - Fixed-mobile convergence (FMC) is being explored to improve customer experience and data integration, with products like Orbit and Smooa [15] Management Commentary on Operating Environment and Future Outlook - Management emphasized the importance of maintaining competitive advantages and focusing on high-value customers to drive healthier growth [20][22] - The company is managing cost pressures and inflation through strategic initiatives, including cost transformation and efficient CapEx allocation [27][28] - Telkomsel aims to defend market share and drive personalized offerings, focusing on network leadership and digital service maximization [34] Other Important Information - Telkom is fostering its ESG strategy by reducing carbon dioxide emissions through the use of gas-fired power plants and solar panels in its HyperScale Data Center [15] - Mitratel acquired 6,000 towers from Telkomsel, strengthening its position as the largest tower provider in Indonesia [16] Q&A Session Summary Question: Mobile base reduction and broadband momentum slowdown [19] - The decline in mobile subscribers is attributed to rotational churn and post-festive season consolidation, with a focus on maintaining leadership and high-value customers [20] - Broadband growth slowdown is due to competition and a strategic focus on high-value customers, with complementary products like Orbit addressing low-end market competition [22] Question: O&M costs moderation and staff costs increase [25] - O&M costs were moderated due to lower content costs, with Telkomsel managing costs related to services like Disney, Netflix, and Zoom [27] - Staff costs increased due to the establishment of the new IndiHome company and its subsidiaries [29] Question: Telkomsel mobile growth and data center updates [33] - Telkomsel aims to defend market share and drive personalized offerings, focusing on network leadership and digital service maximization [34] - Data center revenue growth is expected to pick up with the completion of the HyperScale Data Center, with plans for additional data centers and potential IPO or strategic investment [36] Question: Tariff hikes and industry revenue growth [41] - Tariff hikes are focused on balancing profitability and market share, with competition in Java remaining intense [42] - Industry revenue growth is expected to recover with better competition and pricing strategies, though macro conditions and inflation will be monitored [47] Question: Data center expansion and fixed-mobile convergence strategy [52] - Telkom plans to build two additional HyperScale Data Centers in Cikarang and a greenfield data center in Batam with SingTel, with a capacity of 10 megawatts initially and up to 80 megawatts maximum [53][57] - Fixed-mobile convergence strategy is progressing, with discussions on the injection of IndiHome assets into Telkomsel and potential monetization of fiber assets [62][64]
Telkom Indonesia(TLK) - 2022 Q2 - Quarterly Report
2022-07-29 18:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of July 2022 Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Yes ¨ No þ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ¨ No þ SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the r ...
Telkom Indonesia(TLK) - 2022 Q1 - Quarterly Report
2022-04-26 10:36
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of April, 2022 Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Exact name of Registrant as specified in its charter) Telecommunications Indonesia (A state-owned public limited liability Company) (Translation of registrant's name into English) Jl. Japati No. 1 Bandung 40133, Indonesia (Addre ...