Telkom Indonesia(TLK)2024-04-24 00:16Financial Data and Key Metrics Changes - The consolidated revenue for the first quarter of 2024 increased by 32.7% year-on-year to IDR 28.5 trillion, with mobile revenue contributing IDR 31.9 trillion and fixed broadband revenue at IDR 6.6 trillion [55][84] - Operating net income grew by 3.1% year-on-year to IDR 6.3 trillion, reflecting stable profitability levels supported by mobile business growth [55][83] - EBITDA stood at IDR 19.4 trillion, an increase of 2.2% from the previous year, indicating effective expense management [83] Business Line Data and Key Metrics Changes - Digital business revenue of Telkomsel grew by 8.6% year-on-year, increasing its contribution to mobile revenue from 84.4% to 89.9% [48] - The mobile customer base expanded to 159.7 million, while IndiHome B2C customers reached 8.9 million [48] - The data center business recorded revenue of IDR 449 billion, growing by 6.4% year-on-year, with plans to increase capacity to 60 megawatts by the end of 2024 [57][49] Market Data and Key Metrics Changes - The wholesale and international business segment contributed IDR 4.8 trillion, growing by 17.8% due to increased international wholesale voice business and digital connectivity infrastructure [49] - Data usage increased by 11% year-on-year, indicating a positive trend in customer engagement and service utilization [32][126] Company Strategy and Development Direction - The company aims to become the largest coverage operator in Indonesia by targeting youth and mass market segments through products like Telkomsel Lite [84][46] - The integration of Fixed Mobile Convergence (FMC) is a key strategy to enhance customer engagement and optimize service offerings [46][84] - The company is focused on maintaining profitability while fostering healthy competition in the market, with a commitment to smart acquisitions and quality customer retention [84][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic factors such as inflation and geopolitical situations but emphasized a stable outcome and increased traffic as indicators of improved customer productivity [53] - The outlook for mobile revenue growth is maintained at low-to-mid single digits for 2024, with expectations for a spectrum auction in the second half of the year [111][111] Other Important Information - The company is actively pursuing partnerships for its data center business to enhance capabilities and market reach [49][57] - The company has initiated a monetization process expected to conclude by the end of 2024, focusing on optimizing network consolidation and operational efficiency [58][57] Q&A Session Summary Question: Impact of Telkomsel Lite on mobile revenue outlook for 2024 - Management noted that the attraction of Telkomsel Lite aligns with internal plans, showing positive trends in customer engagement and traffic growth [66][71] Question: Update on spectrum auction timelines - Management expects the auction to occur in the second half of the year, pending official government announcements [111] Question: Reasons for decline in IndiHome B2C revenue and ARPU - The decline is attributed to customer type alignment, but there was a net addition of 222,000 customers in Q1, indicating positive progress [95][95] Question: Reactions from competitors following Telkomsel Lite launch - Management indicated that competitors are expected to respond with appropriate pricing and offerings, maintaining healthy market conduct [28][25] Question: Cost optimization programs and target savings - Management discussed ongoing cost optimization efforts, expecting a synergy impact of IDR 1.8 trillion from the integration of IndiHome [39][129] Question: Clarification on B2B vs B2C revenue reclassification - Management confirmed that the reclassification is between Telkomsel and Telkom, with no significant impact on transaction values [22][123]