Telkom Indonesia(US:TLK)2023-07-28 17:28Consolidated Financial Statements Consolidated Statement of Financial Position As of June 30, 2023, PT Telekomunikasi Indonesia's total assets grew to IDR 290,478 billion from IDR 275,192 billion, driven by increases in current and non-current assets, while total liabilities rose to IDR 150,127 billion and total equity decreased to IDR 140,351 billion Consolidated Statement of Financial Position Highlights (in billions of IDR) | Financial Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | 65,890 | 55,057 | | Total Non-current Assets | 224,588 | 220,135 | | Total Assets | 290,478 | 275,192 | | Total Current Liabilities | 95,350 | 70,388 | | Total Non-current Liabilities | 54,777 | 55,542 | | Total Liabilities | 150,127 | 125,930 | | Total Equity | 140,351 | 149,262 | | Total Liabilities and Equity | 290,478 | 275,192 | Consolidated Statement of Profit or Loss and Comprehensive Income For the six months ended June 30, 2023, revenues increased by 2.1% to IDR 73,478 billion, but profit for the period declined to IDR 16,821 billion, leading to a decrease in profit attributable to owners and basic earnings per share Income Statement Summary for the Six Months Ended June 30 (in billions of IDR, except per share data) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenues | 73,478 | 71,983 | | Operating Profit | 23,019 | 22,936 | | Profit Before Income Tax | 21,302 | 21,429 | | Profit for the Period | 16,821 | 17,555 | | Profit Attributable to Owners of the Parent | 12,756 | 13,310 | | Basic Earnings Per Share (in full IDR) | 128.77 | 134.36 | Consolidated Statement of Changes in Equity Total equity decreased from IDR 149,262 billion at the beginning of 2023 to IDR 140,351 billion by June 30, primarily due to cash dividend payments and other comprehensive loss offsetting the period's profit Equity Movement for the Six Months Ended June 30, 2023 (in billions of IDR) | Description | Amount | | :--- | :--- | | Balance, January 1, 2023 | 149,262 | | Profit for the period | 12,756 | | Other comprehensive income (loss) - net | (1,567) | | Cash dividend | (16,602) | | Net Equity Attributable to Owners | 123,845 | | Non-controlling interests movement | (3,498) | | Total Equity, June 30, 2023 | 140,351 | Consolidated Statement of Cash Flows For H1 2023, net cash from operating activities decreased to IDR 25,620 billion, while financing activities shifted to a net inflow of IDR 798 billion, resulting in an increased cash balance of IDR 40,521 billion Cash Flow Summary for the Six Months Ended June 30 (in billions of IDR) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | 25,620 | 34,944 | | Net cash used in investing activities | (17,669) | (17,569) | | Net cash provided by (used in) financing activities | 798 | (15,707) | | Net Increase in Cash and Cash Equivalents | 8,749 | 1,668 | | Cash and Cash Equivalents at End of Period | 40,521 | 40,160 | Notes to the Consolidated Financial Statements Note 1: General Information This note provides corporate background, business scope, and key corporate actions, including the spin-off of IndiHome to Telkomsel for IDR 58,250 billion and Mitratel's acquisition of 997 towers from Indosat - The company executed a significant restructuring by spinning off its IndiHome Business Segment to its subsidiary, Telkomsel, for a total value of IDR 58,250 billion, increasing Telkom's effective ownership in Telkomsel to 69.9% effective July 1, 202353 - Subsidiary Mitratel acquired 997 telecommunication towers from PT Indosat Tbk for IDR 1,648 billion in February 2023, coupled with a 10-year leaseback agreement55 - The Group's total employee count was 20,879 as of June 30, 2023, a slight decrease from 20,951 at the end of 202232 Note 2: Summary of Significant Accounting Policies This note outlines the principal accounting policies, including the basis of consolidation, revenue recognition (PSAK 72), lease accounting (PSAK 73), and significant management judgments and estimates applied in preparing the financial statements - The financial statements are prepared on an accrual basis in accordance with Indonesian Financial Accounting Standards (SAK), using historical cost as the measurement basis, with exceptions for certain accounts5859 - Revenue from contracts with customers is recognized under a five-step model (PSAK 72), with detailed policies for major revenue streams including Mobile, Consumer, Enterprise, and Wholesale & International Business (WIB)128129133135141 - Leases are accounted for under PSAK 73, requiring recognition of right-of-use (ROU) assets and lease liabilities for most contracts, with exemptions for short-term and low-value asset leases107110115 - Significant management estimates and judgments are applied in areas such as retirement benefit obligations, useful lives of property and equipment, allowance for expected credit losses, and fair value of financial instruments217219220 Notes on Financial Position Items This section details key Statement of Financial Position accounts, including cash and equivalents rising to IDR 40,521 billion, increased trade receivables, P&E at IDR 175,471 billion, and a rise in total borrowings, with short-term loans nearly doubling to IDR 15,129 billion Key Asset & Liability Balances (in billions of IDR) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 40,521 | 31,947 | | Trade Receivables - Net | 10,151 | 8,634 | | Property and Equipment - Net | 175,471 | 173,329 | | Intangible Assets - Net | 8,105 | 8,302 | | Short-term Bank Loans | 15,129 | 8,191 | | Long-term Loans & Borrowings (Non-current) | 26,503 | 27,331 | | Non-controlling Interests | 16,505 | 20,004 | - Long-term investments grew to IDR 9,218 billion, largely due to an unrealized gain of IDR 451 billion from the investment in PT GoTo Gojek Tokopedia Tbk (GOTO)266267 Notes on Operations and Other Items This section details operational performance, including H1 2023 revenues growing 2.1% to IDR 73,500 billion, significant related party transactions, a net debt-to-equity ratio increase to 27.32%, and subsequent financing activities Revenue by Segment - H1 2023 (in billions of IDR) | Segment | Revenue | Segment Result | | :--- | :--- | :--- | | Mobile | 42,169 | 14,757 | | Consumer | 13,283 | 4,380 | | Enterprise | 9,284 | (66) | | WIB | 8,156 | 4,541 | | Total External Revenue | 73,081 | 23,062 | - The company has significant transactions with related parties, including revenues from and expenses to other state-owned enterprises, with expenses paid to PLN amounting to IDR 1,289 billion in H1 2023421 - The net debt-to-equity ratio increased to 27.32% as of June 30, 2023, from 24.06% at year-end 2022, while remaining compliant with all debt covenants508 - Subsequent to June 30, 2023, subsidiary Telkomsel made loan repayments of IDR 6,500 billion, and the parent company drew down an IDR 800 billion facility from HSBC511