Telkom Indonesia(TLK) - 2025 Q1 - Quarterly Report

Front Matter Statement of the Board of Directors The Board of Directors affirms responsibility for the fair presentation of 2024 consolidated financial statements in accordance with Indonesian Financial Accounting Standards - The Board of Directors is responsible for the preparation, presentation, and internal control system related to the consolidated financial statements[10] - The financial statements for the year ended December 31, 2024, have been prepared and presented in accordance with Indonesian Financial Accounting Standards[10] Independent Auditor's Report The independent auditor issued an unqualified opinion on the 2024 consolidated financial statements, with telecommunication infrastructure useful lives as a key audit matter - The auditor issued an unqualified opinion, stating the financial statements are fairly presented in accordance with Indonesian Financial Accounting Standards[14] - The key audit matter identified was the 'Evaluation of telecommunication infrastructure estimated useful lives,' which represents 54% of total consolidated assets at Rp161,035 billion[19] - The audit response to the key audit matter involved evaluating internal controls, assessing management's assumptions regarding asset replacements and technological developments, and performing benchmarking analysis against industry peers[21][22] Consolidated Financial Statements Consolidated Statements of Financial Position Total assets increased to Rp299,675 billion in 2024, with corresponding increases in total liabilities and total equity Consolidated Statement of Financial Position Highlights (in billions of Rupiah) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Total Current Assets | 63,080 | 55,613 | | Total Non-current Assets | 236,595 | 231,429 | | TOTAL ASSETS | 299,675 | 287,042 | | Total Current Liabilities | 76,767 | 71,568 | | Total Non-current Liabilities | 60,418 | 58,912 | | TOTAL LIABILITIES | 137,185 | 130,480 | | TOTAL EQUITY | 162,490 | 156,562 | | TOTAL LIABILITIES AND EQUITY | 299,675 | 287,042 | Consolidated Statements of Profit or Loss and Other Comprehensive Income Revenues slightly increased to Rp149,967 billion in 2024, but rising costs led to a decline in operating profit and profit for the year Consolidated Income Statement Highlights (in billions of Rupiah) | Account | 2024 | 2023 | | :--- | :--- | :--- | | REVENUES | 149,967 | 149,216 | | OPERATING PROFIT | 42,991 | 44,384 | | PROFIT BEFORE INCOME TAX | 39,153 | 40,794 | | PROFIT FOR THE YEAR | 30,743 | 32,208 | | Profit attributable to owners | 23,649 | 24,560 | | TOTAL COMPREHENSIVE INCOME | 31,638 | 30,754 | | BASIC EARNINGS PER SHARE (Rp) | 238.73 | 247.92 | Consolidated Statements of Changes in Equity Total equity increased to Rp162,490 billion in 2024, primarily due to profit for the year, partially offset by cash dividend payments - Total equity grew from Rp156,562 billion at the end of 2023 to Rp162,490 billion at the end of 2024[40] - The increase in equity was mainly due to the profit for the year (Rp30,743 billion), offset by cash dividend payments (Rp24,782 billion)[40] Consolidated Statements of Cash Flows Net cash from operating activities was Rp61,600 billion in 2024, leading to a Rp4,639 billion net increase in cash and cash equivalents after investing and financing outflows Consolidated Cash Flow Summary (in billions of Rupiah) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | 61,600 | 60,581 | | Net cash used in investing activities | (29,456) | (36,909) | | Net cash used in financing activities | (27,505) | (26,567) | | Net increase (decrease) in cash | 4,639 | (2,895) | | Cash and cash equivalents at end of year | 33,905 | 29,007 | Notes to the Consolidated Financial Statements Note 1. General Note 1 details the company's business, management, and key corporate actions, such as the IndiHome spin-off to Telkomsel and Mitratel's telecommunication towers acquisitions - The company's main business activities include providing telecommunication networks, information services, and investing in other companies to support its objectives[48] - A key corporate action was the spin-off of the IndiHome business to Telkomsel on July 1, 2023, which increased the company's effective ownership in Telkomsel from 65% to 69.9%[80] - Subsidiary Mitratel conducted share buybacks, repurchasing shares worth Rp704 billion as of Dec 31, 2024, and acquired 1,800 telecommunication towers in 2023[81][84] Note 2. Summary of Material Accounting Policies Note 2 details material accounting policies, including revenue recognition and significant estimates, all conforming to Indonesian Financial Accounting Standards (PSAK) - The financial statements are prepared on an accrual basis in accordance with Indonesian Financial Accounting Standards (PSAK)[94][95] - Revenue recognition follows a five-step model under PSAK 115, with specific policies for four main streams: Mobile, Consumer, Enterprise, and Wholesale & International Business (WIB)[165][166][170][173][178] - Significant accounting estimates include retirement benefit obligations, useful lives of property and equipment, allowance for expected credit losses, and fair value measurement of financial instruments[253][257][259][267] Financial Position Details (Notes 3-22) Notes 3-22 detail key financial position accounts, including assets, liabilities, and equity components like non-controlling interests Key Asset and Liability Balances (in billions of Rupiah) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | 33,905 | 29,007 | | Trade receivables - net | 12,193 | 10,667 | | Property and equipment - net | 180,566 | 180,755 | | Intangible assets - net | 9,442 | 8,731 | | Trade payables | 15,336 | 18,608 | | Short-term bank loans | 11,525 | 9,650 | | Long-term loans (incl. current) | 41,384 | 38,049 | - Material non-controlling interests are held in subsidiaries Telkomsel (30.10%) and Mitratel (28.16%), with a total NCI balance of Rp20,396 billion[341][342] Operational and Performance Details (Notes 23-29) Notes 23-29 detail income statement components, including revenue by segment, major expenses, taxation, earnings per share, and dividend distributions Revenue by Segment (in billions of Rupiah) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Mobile | 83,400 | 85,291 | | Consumer | 26,310 | 26,436 | | Enterprise | 20,584 | 19,497 | | WIB | 18,000 | 16,922 | | Others | 1,673 | 1,070 | | Total Revenues | 149,967 | 149,216 | - Basic earnings per share decreased to Rp238.73 in 2024 from Rp247.92 in 2023[382] - A cash dividend of Rp17,683 billion (Rp178.50 per share) for the 2023 fiscal year was approved and paid in May 2024[384] Other Notes (Notes 30-41) Notes 30-41 cover pension benefits, segment performance, contingencies, financial risk management, subsequent events, and PSAK/IFRS differences - The company reports on four primary segments: Mobile, Consumer, Enterprise, and WIB. The Mobile segment remains the largest contributor to revenue and profit[444][447] - A significant contingency exists related to ongoing investigations by the U.S. SEC and DOJ concerning a project with BAKTI Kominfo, accounting practices, and FCPA compliance. The potential financial impact is currently not estimable[484][485] - Subsequent to year-end, the Indonesian Government transferred its 52.09% stake to a state-owned holding company, PT Biro Klasifikasi Indonesia (BKI), and the company announced a share buyback plan of up to Rp3,000 billion[535] - The net debt-to-equity ratio increased slightly from 28.82% in 2023 to 30.24% in 2024[530]