Telkom Indonesia(US:TLK)2024-04-01 19:49Subscriber Base and Customer Segments - Telkom has 10.1 million IndiHome fixed broadband subscribers and 159.3 million cellular subscribers, including 7.5 million postpaid and 151.8 million prepaid subscribers[21]. - The company serves 524 groups of SOEs, 1,694 private customers, 618,854 SME customers, and 714 government institution customers[22]. - Telkom's digital services have 17.7 million active users in digital music, 15.6 million paying users in digital games, and 10.5 million paying users in digital edutainment[24]. Infrastructure and Network - The company is focused on expanding its infrastructure through the Indonesia Cyber Core Program, which includes id-Service, id-Convergence, and id-Network[25]. - Telkom's subsidiaries include Telkomsel, which covers over 90% of Indonesia's population, and PT Telkom Akses, which manages fixed broadband access networks[18]. - The company operates a fiber optic backbone network of 176,663 km, with 111,663 km domestic and 64,700 km international[29]. - The mobile network consists of 247,472 base transceiver stations (BTS), including 654 BTS for 5G[30]. - Telkom has 38 million homes passed with its fiber optic access network[27]. Financial Performance - Total revenues for 2023 reached Rp149,216 billion, a 1.3% increase from Rp147,306 billion in 2022[31]. - EBITDA for 2023 was Rp77,579 billion, slightly down from Rp78,992 billion in 2022, resulting in an EBITDA margin of 51.9%[31][41]. - Profit for the year attributable to owners of the parent company increased to Rp24,560 billion, up 18% from Rp20,753 billion in 2022[31]. - Total assets as of 2023 amounted to Rp287,042 billion, an increase from Rp275,192 billion in 2022[32]. - Capital expenditure for 2023 was Rp32,968 billion, a decrease from Rp34,156 billion in 2022[33]. - Revenue for the financial year 2023 reached Rp149,216 billion, reflecting a 1.30% year-over-year growth[54]. - EBITDA decreased to Rp77,579 billion, down 1.79% year-over-year[54]. - Net profit increased to Rp24,560 billion, showing an 18.3% year-over-year growth[54]. Market Position and Growth Strategy - The company aims to enhance its market position through strategic partnerships and acquisitions in the telecommunications sector[18]. - The telecommunications industry in Indonesia is projected to grow by 5.3% in 2024, supported by strong domestic consumption and investment growth[62]. - The digital economy's contribution to Indonesia's GDP is expected to rise from 8% in 2022 to 14% in 2027[64]. - Telkom's CAPEX plan for future growth is set at 22% of total revenue, focusing on mobile, fixed broadband, data center & cloud, and infrastructure[83]. - The ICT sector contributed Rp812.81 trillion to the national GDP in 2022, with a predicted CAGR of 6.1% from 2023 to 2027[64]. Sustainability and Corporate Governance - Telkom has initiated a commitment to Net Zero Emission through NeutraDC, emphasizing sustainability in operations[53]. - The ASEAN Corporate Governance Scorecard (ACGS) score improved from 97.87 to 98.5, reflecting enhanced corporate governance practices[90]. - The company is committed to maintaining transparency and good corporate governance practices[179]. Digital Transformation and Innovation - The company is actively involved in various digital services, including e-commerce for B2B and property management to optimize its assets across Indonesia[23]. - Telkom's digital transformation strategy includes a diverse portfolio of products and services across various business segments, including mobile, consumer, and enterprise[159]. - The company is transforming towards B2B Digital IT Services through partnerships with major technology firms like Microsoft and AWS[142]. - The company has increased collaboration with major technology firms, including Microsoft, to enhance its service offerings[155]. Employee and Organizational Structure - As of the end of 2023, Telkom has a total of 23,064 employees, a decrease of 729 employees or 3% compared to 2022[207]. - The number of employees from the parent company is 7,469, down from 8,919 in 2022[208]. - The largest proportion of employees, 68% or 15,624 people, hold an undergraduate degree[209]. - 73.4% or 16,925 employees are under the age of 45, a decrease of 1% compared to the previous period[210]. - The company emphasizes creating a professional and safe work environment for its employees[205]. Strategic Initiatives and Future Plans - The company is implementing a transformation strategy with five bold moves, including Fixed Mobile Convergence and InfraCo, to enhance operational efficiency and market penetration[138][139]. - The company plans to build and manage data centers with a target capacity of 62 MW by 2025, including Hyperscale Data Centers and Edge Data Centers[115]. - A strategic acquisition of a local tech firm is anticipated to enhance the company's capabilities and is expected to close by Q2 2024[170]. - The company is investing $50 million in research and development for new technologies aimed at improving user experience[171]. - Operational efficiency initiatives are projected to reduce costs by 10%, enhancing overall profitability[172].