Telkom Indonesia(TLK) - 2023 Q3 - Quarterly Report

Financial Performance - Revenues for the nine months ended September 30, 2023, reached IDR 111,238 billion, an increase of 2.5% compared to IDR 108,874 billion in the same period of 2022[12] - Operating profit for the same period was IDR 34,982 billion, up from IDR 31,573 billion, reflecting a growth of 10.5% year-over-year[12] - Profit for the period attributable to owners of the parent company was IDR 19,499 billion, representing a 17.5% increase from IDR 16,581 billion in 2022[12] - The net profit for the period ended September 30, 2023, is IDR 25,389 billion, compared to IDR 22,816 billion for the same period in 2022, representing an increase of about 11.3%[15] - Cash receipts from customers and other operators for the nine months ended September 30, 2023, totaled IDR 111,475 billion, up from IDR 107,580 billion in 2022, indicating a growth of approximately 3.6%[17] Assets and Liabilities - Total assets as of September 30, 2023, amounted to IDR 276,212 billion, slightly up from IDR 275,192 billion at the end of 2022[11] - Total liabilities increased to IDR 126,719 billion from IDR 125,930 billion, indicating a rise of 0.6%[11] - As of September 30, 2023, the total equity attributable to owners of the parent company is IDR 130,693 billion, an increase from IDR 123,572 billion in the same period of 2022, reflecting a growth of approximately 5.4%[15] Cash Flow and Dividends - Cash and cash equivalents decreased to IDR 25,905 billion from IDR 31,947 billion, a decline of 19%[11] - The net cash provided by operating activities decreased to IDR 42,777 billion in 2023 from IDR 50,866 billion in 2022, a decline of about 16%[17] - Cash dividends paid to the Company's stockholders in 2023 amounted to IDR 16,602 billion, compared to IDR 14,856 billion in 2022, reflecting an increase of approximately 11.7%[17] Expenses and Costs - Personnel expenses rose to IDR 11,678 billion, up from IDR 11,155 billion, reflecting a 4.7% increase[12] - The company’s finance costs increased to IDR 3,462 billion from IDR 3,009 billion, a rise of 15%[12] - The Company reported cash payments for corporate and final income taxes of IDR 8,001 billion in 2023, compared to IDR 6,893 billion in 2022, an increase of approximately 16.1%[17] Investments and Acquisitions - The acquisition of towers by subsidiaries amounted to IDR 1,684 billion in 2023, indicating ongoing investment in infrastructure[17] - Mitratel agreed to acquire 997 telecommunication towers from PT Indosat Tbk for Rp1,648 billion, with a leaseback agreement for 983 sites for a 10-year period[53] Employee and Governance - As of September 30, 2023, the company had 20,697 employees, a decrease from 20,951 employees as of December 31, 2022, reflecting a reduction of approximately 1.2%[30] - The company’s Board of Commissioners and Directors remained consistent in composition from December 31, 2022, to September 30, 2023, ensuring stability in governance[29] Accounting Policies and Standards - The consolidated financial statements are prepared in accordance with Indonesian Financial Accounting Standards, with amounts expressed in billions of Indonesian Rupiah[57] - The Group adopted new accounting standards effective January 1, 2023, which did not result in major changes to accounting policies or material effects on reported amounts[61] - Future amendments to accounting standards effective January 1, 2024, include changes to the presentation of financial statements and fixed assets[62] Revenue Recognition - The company recognizes revenue from mobile services, including cellular, internet, and SMS, based on actual usage or plan basis[128] - For consumer services, revenue is recognized on a postpaid basis, with an upfront fee considered a material right and deferred as contract liabilities[132] - Revenue from enterprise customers is recognized over time based on actual usage or time elapsed, with certain contracts potentially involving variable consideration[135] Financial Assets and Liabilities - Financial assets are classified and measured at amortized cost, fair value through OCI, or fair value through profit or loss based on their contractual cash flow characteristics[175] - Financial liabilities are classified as either at FVTPL or measured at amortized cost, with interest-bearing loans and borrowings typically falling under the latter category[195]