Telkom Indonesia(TLK) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenues for the six months ended June 30, 2025, were IDR 73,004 billion, a decrease of 3.4% compared to IDR 75,292 billion in the same period of 2024[12] - Operating profit for the period was IDR 19,901 billion, down 8.0% from IDR 21,635 billion in the previous year[12] - Profit for the period attributable to owners of the parent company was IDR 10,975 billion, a decrease of 6.7% from IDR 11,761 billion in 2024[12] - Basic earnings per share for the period was IDR 110.79, down from IDR 118.72 in the same period of 2024[12] - The company reported a profit for the period of IDR 14,126 billion for the first half of 2025, compared to IDR 15,424 billion in the same period of 2024, indicating a decrease of about 8.4%[17] Assets and Liabilities - Total current assets decreased to IDR 60,378 billion as of June 30, 2025, from IDR 63,080 billion at the end of 2024, reflecting a decline of 4.3%[11] - Total liabilities increased to IDR 145,435 billion as of June 30, 2025, compared to IDR 137,185 billion at the end of 2024, marking a rise of 6.0%[11] - Total equity decreased to IDR 148,362 billion as of June 30, 2025, down from IDR 162,490 billion at the end of 2024, a decline of 8.7%[11] - The total retained earnings as of June 30, 2025, are IDR 99,520 billion, down from IDR 103,104 billion as of June 30, 2024[15] Cash Flow and Investments - The net cash provided by operating activities for the first half of 2025 is IDR 32,573 billion, an increase from IDR 29,687 billion in the same period of 2024[17] - Cash receipts from customers and other operators decreased to IDR 71,204 billion in 2025 from IDR 72,497 billion in 2024, reflecting a decline of approximately 1.8%[17] - The company incurred cash payments for corporate and final income taxes amounting to IDR 4,466 billion in 2025, a decrease from IDR 6,434 billion in 2024, reflecting a reduction of approximately 30.6%[17] - The net cash used in investing activities decreased to IDR 11,460 billion in 2025 from IDR 14,206 billion in 2024, indicating a reduction of about 19.4%[17] - Proceeds from loans and other borrowings increased significantly to IDR 39,689 billion in 2025 from IDR 24,189 billion in 2024, marking an increase of approximately 64.2%[17] Personnel and Operations - Personnel expenses decreased to IDR 8,075 billion, down 14.9% from IDR 9,485 billion in 2024[12] - As of June 30, 2025, the company had 19,319 employees, a decrease from 19,695 employees as of December 31, 2024[30] - The company continues to focus on enhancing its telecommunications services and expanding its market presence in Indonesia[12] Shareholder Actions - Cash dividends paid to the company's stockholders increased to IDR 21,047 billion in 2025 from IDR 17,683 billion in 2024, representing an increase of approximately 18.5%[17] - The company’s share buyback program reflects a strategic move to enhance shareholder value amidst ongoing market conditions[44] Subsidiaries and Assets - Total assets of PT Telekomunikasi Selular (Telkomsel) as of June 30, 2025, are Rp113,874 billion, down from Rp117,403 billion in December 2024[46] - PT Dayamitra Telekomunikasi (Mitratel) reported total assets of Rp60,076 billion as of June 30, 2025, an increase from Rp58,140 billion in December 2024[46] - The Company has a 100% ownership stake in several subsidiaries, including PT Multimedia Nusantara and PT Telkom Data Ekosistem, with total assets of Rp17,982 billion and Rp8,726 billion respectively as of June 30, 2025[46] Accounting and Financial Reporting - The consolidated financial statements are prepared in accordance with Indonesian Financial Accounting Standards, with amounts expressed in billions of Rupiah[63] - The Group adopted new accounting standards effective January 1, 2025, which did not result in major changes to accounting policies or material effects on reported amounts[67] - The reporting currency for the consolidated financial statements is the Indonesian Rupiah, with certain subsidiaries using other currencies[65] Revenue Recognition - Revenue from mobile services includes cellular service, internet and data service, and SMS, recognized based on actual usage or allowance unit used, indicating a performance-based revenue model[126] - For prepaid services, initial package sales and top-up vouchers are recognized as contract liabilities, while postpaid services generate contract assets for unbilled services[127] - Revenue from enterprise customers is recognized over time based on actual usage or elapsed time, with bespoke contracts being common[134] Financial Assets and Liabilities - The Group's financial assets are classified into categories such as amortized cost, FVTOCI, and FVTPL[169] - Expected credit losses (ECL) are recognized based on the difference between contractual cash flows and expected cash flows[185] - Financial liabilities are initially recognized at fair value, net of transaction costs for loans and borrowings[190]