Telkom Indonesia(US:TLK)2024-10-30 17:09Financial Performance - Total revenues for the nine months ended September 30, 2024, reached IDR 112,219 billion, a slight increase of 0.88% compared to IDR 111,238 billion in the same period of 2023[12]. - Operating profit decreased to IDR 32,450 billion, down 7.26% from IDR 34,982 billion year-over-year[12]. - Profit for the period was IDR 23,021 billion, representing a decline of 9.34% compared to IDR 25,389 billion in the previous year[12]. - The company reported a basic earnings per share of IDR 178.42, down from IDR 196.84 in the same period last year[12]. - The company’s total comprehensive income for the period was IDR 23,032 billion, slightly down from IDR 23,927 billion in the previous year[12]. - The profit for the period ended September 30, 2024, is IDR 23,021 billion, compared to IDR 25,389 billion for the same period in 2023, indicating a decline of about 9.3%[15]. Assets and Liabilities - Total assets as of September 30, 2024, amounted to IDR 285,134 billion, a decrease from IDR 287,042 billion at the end of 2023[11]. - Current liabilities increased to IDR 74,978 billion, up from IDR 71,568 billion at the end of 2023, reflecting a rise of 6.69%[11]. - The company’s cash and cash equivalents decreased to IDR 24,540 billion from IDR 29,007 billion at the end of 2023, a decline of 15.99%[11]. - Non-controlling interest decreased to IDR 18,649 billion from IDR 20,818 billion, a drop of 10.43%[11]. - As of September 30, 2024, the total equity attributable to owners of the parent company is IDR 154,351 billion, a decrease from IDR 149,493 billion as of September 30, 2023, reflecting a year-over-year change of approximately 3.8%[15]. Cash Flow and Investments - Cash receipts from customers and other operators for the nine months ended September 30, 2024, totaled IDR 109,057 billion, a decrease from IDR 111,475 billion in 2023, representing a decline of approximately 2.2%[17]. - Net cash provided by operating activities for the nine months ended September 30, 2024, is IDR 45,955 billion, an increase from IDR 42,777 billion in 2023, reflecting a growth of about 7.1%[17]. - Cash dividends paid to the Company's stockholders for the nine months ended September 30, 2024, amounted to IDR 17,683 billion, compared to IDR 16,602 billion in 2023, marking an increase of approximately 6.5%[17]. - The Company reported cash payments for expenses totaling IDR 35,830 billion for the nine months ended September 30, 2024, down from IDR 41,740 billion in 2023, reflecting a reduction of approximately 14.2%[17]. - The Company has made significant investments in property and equipment, with purchases totaling IDR 18,485 billion in 2024, compared to IDR 22,733 billion in 2023, indicating a decrease of about 18.6%[17]. - The Company has reported a net cash used in investing activities of IDR 21,513 billion for the nine months ended September 30, 2024, compared to IDR 26,262 billion in 2023, indicating a decrease of about 18.0%[17]. Employee and Personnel Expenses - As of September 30, 2024, the company had 19,456 employees, a decrease from 20,605 employees as of December 31, 2023[31]. - Personnel expenses rose to IDR 13,156 billion, an increase of 12.66% compared to IDR 11,678 billion in 2023[12]. Subsidiaries and Investments - Total assets of PT Telekomunikasi Mobile (Telkomsel) as of September 30, 2024, are 109.811 billion Rupiah, a decrease from 112.966 billion Rupiah in 2023, representing a decline of approximately 1.9%[45]. - PT Dayamitra Telekomunikasi (Mitratel) reported total assets of 56.977 billion Rupiah in 2024, slightly down from 57.010 billion Rupiah in 2023, indicating a decrease of about 0.06%[45]. - PT Multimedia Nusantara (Metra) has total assets of 17.981 billion Rupiah in 2024, compared to 18.457 billion Rupiah in 2023, reflecting a decline of approximately 2.58%[45]. - PT Telekomunikasi International Indonesia (Telin) saw an increase in total assets from 15.175 billion Rupiah in 2023 to 17.634 billion Rupiah in 2024, marking a growth of about 16.2%[45]. - PT Telkom Data Ekosistem (TDE) reported a significant increase in total assets from 4.059 billion Rupiah in 2023 to 9.136 billion Rupiah in 2024, representing a growth of approximately 125.7%[45]. - PT Telkom Satelit Indonesia (Telkomsat) increased its total assets from 7.938 billion Rupiah in 2023 to 8.502 billion Rupiah in 2024, showing a growth of about 7.1%[45]. - PT Metra Digital Investama (MDI) reported total assets of 8.649 billion Rupiah in 2024, up from 8.556 billion Rupiah in 2023, indicating a growth of approximately 1.1%[47]. - PT Telekomunikasi Indonesia International Pte. Ltd. (Telin Singapore) saw its total assets increase from 3.499 billion Rupiah in 2023 to 5.661 billion Rupiah in 2024, reflecting a growth of about 62%[47]. - PT NeutraDC Singapore, a new subsidiary, reported total assets of 3.371 billion Rupiah as of September 30, 2024[47]. - PT Infomedia Nusantara's total assets increased from 2.248 billion Rupiah in 2023 to 2.313 billion Rupiah in 2024, representing a growth of approximately 2.9%[47]. - As of September 30, 2024, total assets of PT Telekomunikasi Indonesia's subsidiary PT Teknologi Data Infrastruktur increased to Rp886 billion, up from Rp606 billion in December 2023, representing a growth of 46.2%[50]. Accounting and Financial Reporting - The Group adopted new accounting standards effective January 1, 2024, with no material effect on current or prior financial year amounts reported[66]. - The consolidated financial statements include the financial statements of the Company and its subsidiaries, with control defined by exposure to variable returns and the ability to affect those returns[71]. - The Group's accounting for business combinations follows the acquisition method, measuring consideration transferred at fair value, with goodwill recognized as the excess of consideration over net identifiable assets acquired[79][80]. - Cash and cash equivalents are defined as cash in banks and on hand, along with short-term deposits with maturities of three months or less[87]. - Inventories include components such as telephone terminals and SIM cards, valued at the lower of cost and net realizable value, with costs determined using the weighted average method[89][90]. - Intangible assets are amortized over their estimated useful lives, with software amortized over 3-6 years and licenses over 3-20 years[96]. - Property and equipment are stated at cost less accumulated depreciation, with significant expenditures related to leasehold improvements capitalized and depreciated over the lease term[97][99]. - The Group has transactions with related parties, defined according to Bapepam-LK's regulations, including government-related entities[76][78]. - The Group reassesses control over an investee if facts and circumstances indicate changes to the elements of control, with consolidation ceasing when control is lost[72]. - The Group recognizes any surplus or deficit in profit or loss attributable to the Group upon loss of control over a subsidiary[75]. - The Group recognizes lease liabilities at the present value of lease payments over the lease term, including fixed and variable payments[111]. - The Group's revenue recognition policy for mobile services includes cellular service, internet and data service, and SMS, recognized based on actual usage or plan basis[124]. - For prepaid services, initial package sales and top-up vouchers are recognized as contract liabilities, while postpaid services create contract assets for unbilled services[125]. - The Group applies a single recognition and measurement approach for all leases, except for short-term leases and low-value assets[107]. - The Group capitalizes borrowing costs during the construction of qualifying assets, ceasing capitalization once the asset is ready for use[105]. - Foreign currency transactions are translated into Indonesian Rupiah at the mid rates of exchange prevailing at the transaction date[122]. - The Group's lease term corresponds to the non-cancellable period of each contract, with options to renew assessed at contract inception[106]. - Revenue from operating leases is accounted for on a straight-line basis over the lease terms and included in revenue[117]. - The Group recognizes ROU assets at the commencement date of the lease, measured at cost less accumulated amortization and impairment losses[108]. - Consumer revenue primarily comes from fixed telephone and IndiHome services, with revenues recognized based on actual usage or time elapsed[130]. - The Group applies a 12-month contract period for consumer services, with an upfront fee considered a material right for customers[131]. - Enterprise revenue includes telephone service, internet, data, and IT services, recognized over time based on actual usage[132]. - Revenue from wholesale and international business mainly consists of interconnection services, recognized based on actual recorded traffic for the month[138]. - Contract assets are recognized for revenue earned from delivery of goods or services, reclassified to trade receivables upon project completion[138]. - Contract liabilities are recognized when payment is received before the Group transfers related goods or services, recognized as revenue upon performance[140]. - The Group evaluates capitalized contract costs for impairment at the end of each reporting year[142]. - Rental income from lessor transactions is recognized on a straight-line basis over the lease term[143]. - Current and deferred income taxes are recognized as income or expense in the consolidated statements of profit or loss[155]. - Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future periods[158]. - The Group recognizes expected credit losses (ECL) for all debt instruments not held at fair value through profit or loss, with a simplified approach for trade receivables and contract assets[181]. - Financial assets are classified into categories such as amortized cost, fair value through other comprehensive income (FVTOCI), and fair value through profit or loss (FVTPL), impacting how they are measured and reported[173]. - The Group's financial liabilities include trade and other payables, accrued expenses, customer deposits, and interest-bearing loans, which are measured at amortized cost using the effective interest rate method[187]. - The Group has not designated any financial liabilities as at fair value through profit or loss (FVTPL) as of September 30, 2024[190]. - Dividends are recognized as a liability in the consolidated financial statements in the year they are approved by stockholders, reflecting the company's commitment to returning value to shareholders[194]. - Basic earnings per share is calculated by dividing profit attributable to owners of the parent company by the weighted average number of shares outstanding, with no potentially dilutive financial instruments reported[195]. - The Group's financial assets at FVTPL consist of other long-term investments in financial instruments and other current financial assets, indicating a diverse investment strategy[180]. - The Group applies a two-stage approach for recognizing ECL, with a focus on credit exposures that have significantly increased in risk since initial recognition[183]. - Treasury stock is accounted for at reacquisition cost and presented as a deduction in equity, reflecting the company's strategy in managing its own shares[193]. - The Group recognizes provisions for onerous contracts when the contract becomes onerous, accounting for the lower of the cost of fulfilling the contract and any penalties arising from failure to fulfill it[197]. - At the end of each reporting period, the Group assesses non-financial assets for impairment, including property, equipment, and intangible assets, estimating recoverable amounts if indications of impairment exist[198]. - The recoverable amount of an asset is determined as the higher of its fair value less costs to sell and its value in use, with assets written down to their recoverable amount if the carrying amount exceeds it[200].