Telkom Indonesia(TLK) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for the six months ended June 30, 2024, increased to IDR 75,292 billion, up from IDR 73,478 billion in the same period of 2023, representing a growth of 2.5%[13] - Operating profit for the period was IDR 21,635 billion, a decrease of 6.0% compared to IDR 23,019 billion in the previous year[13] - Profit for the period attributable to owners of the parent company was IDR 11,761 billion, down from IDR 12,756 billion, reflecting a decline of 7.8%[13] - Total comprehensive income for the period was IDR 15,772 billion, compared to IDR 15,254 billion in the same period last year, indicating an increase of 3.4%[13] - Basic earnings per share for the period was IDR 118.72, down from IDR 128.77 in the previous year[13] - The company reported a profit for the period of IDR 15,424 billion for the first half of 2024, compared to IDR 16,821 billion for the same period in 2023, reflecting a decrease of approximately 8.3%[16] Assets and Liabilities - Current assets as of June 30, 2024, totaled IDR 54,733 billion, slightly down from IDR 55,613 billion at the end of 2023[12] - Total liabilities increased to IDR 138,718 billion as of June 30, 2024, compared to IDR 130,480 billion at the end of 2023, marking an increase of 6.3%[12] - Total equity decreased to IDR 147,274 billion from IDR 156,562 billion, reflecting a decline of 5.9%[12] - Total assets for PT Telekomunikasi Indonesia Tbk. as of June 30, 2024, amounted to 108,250 billion Rupiah, a decrease from 112,966 billion Rupiah in 2023, representing a decline of approximately 6.1%[47] Cash Flow and Investments - Cash receipts from customers and other operators increased to IDR 72,497 billion in 2024 from IDR 71,175 billion in 2023, representing a growth of 1.85%[18] - Net cash provided by operating activities rose to IDR 29,687 billion in 2024, up from IDR 25,620 billion in 2023, indicating an increase of 15.5%[18] - Total cash used in investing activities was IDR 14,206 billion in 2024, a decrease from IDR 17,669 billion in 2023, indicating a reduction of 19.5%[18] - Cash and cash equivalents at the end of the period decreased to IDR 25,458 billion in 2024 from IDR 40,521 billion in 2023, a decline of 37.2%[18] Personnel and Expenses - Personnel expenses rose to IDR 9,485 billion, up from IDR 7,844 billion, indicating a significant increase of 20.9%[13] - The company reported finance income of IDR 705 billion, an increase from IDR 526 billion in the same period last year[13] Shareholder and Capital Information - The company paid cash dividends totaling IDR 17,683 billion to stockholders in 2024, compared to IDR 16,602 billion in 2023, marking an increase of 6.5%[18] - The company’s total authorized share capital was reduced from Rp20,000 billion to Rp19,500 billion as approved at the AGM held on April 27, 2018[43] - The company’s Series B shares are listed on the IDX, with 41,907,921 ADS equivalent to 4,190,792,080 Series B shares listed on the NYSE as of June 30, 2024[44] Subsidiaries and Acquisitions - The company has consolidated subsidiaries as of June 30, 2024, with details provided in the financial statements[46] - Mitratel conducted a share buyback amounting to 422,564,000 shares, equivalent to Rp268 billion from January 1, 2024, to June 30, 2024[53] - Mitratel acquired 997 telecommunications towers from Indosat for Rp1,648 billion and agreed to lease back 983 slots for a 10-year period[56] - Mitratel also acquired 803 telecommunications towers from PT Gametraco Tunggal for Rp1,753 billion[56] Accounting Policies and Financial Statements - The consolidated financial statements were authorized for issuance by the Board of Directors on July 29, 2024[60] - The financial statements are prepared in accordance with Indonesian Financial Accounting Standards, with amounts expressed in billions of Rupiah[61] - The Group's accounting policies were adjusted in line with new and revised financial accounting standards effective from January 1, 2024, with no material effect on reported amounts[65] - The consolidated statements of cash flows are prepared using the direct method, reflecting changes in cash and cash equivalents from operating, investing, and financing activities[63] Revenue Recognition - The Group's revenue recognition policy includes mobile, consumer, enterprise, and wholesale segments, with mobile services recognized based on actual usage or plan allowances[125][127][132]. - Revenue from mobile services includes cellular service, internet and data service, and SMS, with initial package sales recognized as contract liabilities[125][126]. - Consumer revenue primarily comes from fixed telephone and IndiHome services, with a contract period of 12 months followed by a monthly contract[129][130]. - Enterprise revenue includes telephone service, internet, and data, recognized over time based on actual usage or elapsed time[132][134]. Taxation and Financial Liabilities - Current and deferred income taxes are recognized in the consolidated statements of profit or loss, except when arising from transactions recognized directly in equity[154]. - Financial liabilities include trade and other payables, accrued expenses, customer deposits, interest-bearing loans, and lease liabilities[184]