Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Q1 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed picture. While there is growth in key areas like mobile and digital business revenues, concerns arise from declining ARPU and flat subscriber growth. The Q&A highlights management's cautious optimism, but lack of clarity on certain issues raises uncertainties. Despite positive developments like fiber optic expansion and cost optimization targets, the overall sentiment remains balanced, resulting in a neutral outlook for the stock price.
Key Financial Performance
Revenue IDR 37.4 trillion, increased by 3.7% year-on-year. The growth is attributed to successful efforts in promoting data and internet revenue as well as managing expenses.
EBITDA IDR 19.4 trillion, increased by 2.2% year-on-year. The increase is due to better management of expenses and growth in data and internet revenue.
Operating Net Income IDR 6.3 trillion, grew by 3.1% year-on-year. The growth is after accounting for the mark-to-market effect from GOTO.
Mobile Revenue IDR 28.5 trillion, increased by 32.7% year-on-year, driven by growth in mobile business.
Digital Business Revenue Increased by 8.6% year-on-year, contributing to mobile revenue growth from 84.4% to 89.9%.
Wholesale and International Business Revenue IDR 4.8 trillion, grew by 17.8% year-on-year, due to growth in international wholesale voice business and digital connectivity infrastructure.
Data Center and Cloud Revenue IDR 449 billion, grew by 6.4% year-on-year, reflecting the demand for data center services.
Mitratel Revenue IDR 2.3 trillion, grew by 7.3% year-on-year, driven by tower leasing revenues.
Mitratel EBITDA Grew by 9.9% year-on-year, with an EBITDA margin of 83.5%, increased by 2.0 percentage points.
Mitratel Net Income Grew by 4.0% year-on-year, with a net income margin of 33.6%, decreased by 0.8 percentage points.
Persero Segment Revenue IDR 4.5 trillion, reflecting strong performance in enterprise connectivity solutions.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New Product Launch: Telkomsel specifically designed products to cater to customer needs, ensuring customization for specific segments and localized quota allocation.
Data Center Business: Telkom plans to fully unlock its data center business in 2024 by finding strategic partners for retail and management expertise.
Market Expansion: Telkomsel expanded its mobile customer base to 159.7 million and reached 8.9 million IndiHome B2C customers.
International Business Growth: Wholesale and international business segment contributed IDR 4.8 trillion, growing by 17.8% due to international wholesale voice and digital connectivity.
Operational Efficiency: Synergy and efficiency of modem established, ready to launch product portfolio for home and SME segments.
Tower Expansion: Telkom has 38,100 towers, adding 130 towers in Q1 2024, maintaining its position as the largest tower provider in Southeast Asia.
Strategic Shift: Telkom Group is focusing on data center monetization and enhancing InfraCo business to drive future growth.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Macroeconomic Risks: The company faces a macroeconomic downturn and higher inflation, worsened by geopolitical situations, which could impact business stability.
Regulatory Risks: The newly elected government in Indonesia may influence political, socio-economic, and business stability, posing a risk to the company's operations.
Supply Chain Challenges: The company acknowledges the need for timely market strategies in the data center business, where leading suppliers can increase operating costs and lagging suppliers can result in lost opportunities.
Competitive Pressures: The company operates in a highly competitive market, particularly in the InfraCo initiative, which requires agility and strong partnerships to maintain market position.
Economic Factors: Potential recession and worsening inflation could adversely affect the company's revenue and profitability.
Customer Retention Risks: The company aims to mitigate risks of price wars and customer churn through tailored products and a customer-oriented approach.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Data Center Business: Telkom plans to fully unlock its data center business within 2024 by finding strategic partners to enhance retail and management expertise.
InfraCo Initiative: Telkom aims to pursue a capacity of 400 megawatts by 2030, with ongoing progress in the InfraCo initiative.
Customer Base Expansion: Telkomsel has expanded its mobile customer base to 159.7 million and IndiHome B2C customers to 8.9 million.
Monetization Process: The group has initiated monetization of its data center business, expected to be completed by the end of 2024.
Sustainability Initiatives: Telkom launched the EXIST ESG program focusing on environmental sustainability, employee development, and compliance with business ethics.
Revenue Growth: Telkom Group reported a revenue increase of 3.7% year-on-year to IDR 37.4 trillion.
EBITDA Growth: EBITDA increased by 2.2% year-on-year to IDR 19.4 trillion.
Operating Net Income: Operating net income grew 3.1% year-on-year to IDR 6.3 trillion.
Data Center Revenue: Data center and cloud revenue reached IDR 449 billion, growing 6.4% year-on-year.
Mitratel Revenue: Mitratel recorded revenue of IDR 2.3 trillion, growing 7.3% year-on-year.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Buyback Program: None
Dividend Program: None
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:How has been the impact of Telkomsel Lite plan and any changes on your mobile revenue outlook for 2024 post this plan launch?
A:The attraction of Telkomsel Lite is aligned to our internal plan. We have seen improvement of payload and renewal trends in less than one month. However, we are constantly monitoring progress and will adjust as necessary with regards to market movement.
Q:Any update on spectrum auction timelines?
A:We still wait for the official announcement from the government as they are preparing the documentation and terms. We expect that the auction would be at the latest in the second half of this year.
Q:What is driving the revenue down quarter-on-quarter for IndiHome B2C?
A:The revenue down on a Q-on-Q basis as well as ARPU decline is due to the alignment of the customer type. However, we are able to add a net add of 222,000 in the quarterly basis in Q1, showing positive progress.
Q:What led to the decline in ARPU and why hasn't this translated into subscriber growth?
A:The ARPU in mobile is comprised of digital connectivity revenue as well as revenue from legacy services, which is also declining. The ARPU contraction is due to the smaller contribution from legacy services.
Q:Can you elaborate on what led to the reduction in O&M expense quarter-on-quarter?
A:We have O&M growth by minus 2.7%, which is driven by a one-off impact on the surface tower related to inflation application on the contract.
Q:Can management elaborate more on the alignment happening in the transition period for IndiHome?
A:Our strategy is to penetrate various segments while also trying to increase ARPU by shifting customers to higher speed and higher ARPU products.
Q:What is the group strategy to limit or ensure that there's no cannibalization happening from by.U for main Telkomsel brands?
A:We have not seen any cannibalization of by.U from the customer segment perspective. By.U targets the youth and digitally savvy, and we are getting new customers from this group.
Q:How should we think about the consumer and enterprise segments given the erratic revenue?
A:We need to see from principal and agent discipline on this one. We are in the process of fixing this and will provide a firm answer on how we will treat this.
Q:Are you seeing any reactions from your competitors following the launch of Telkomsel Lite?
A:We believe that these tailored products will mitigate the risk of price loss and internal churn.
Q:Are you able to elaborate on target cost savings for this year following your mobile convergence?
A:We expect to extend cost optimization programs which include content cost aggregation and customer interaction management.
Q:Is the decline in B2C revenue merely a reclassification between consumer and enterprise?
A:It is purely a reclassification. Some of the revenue at the time of reporting are grouped under IndiHome, which is consumer.
Q:What are the key drivers of the strong data traffic growth in the first quarter?
A:The data traffic increase in Q1 is due to an increase in data usage of 11% compared to last year, along with improved productivity of payloads.
Q:Can you give us a breakdown of the changes in subscriber in the mobile customer category?
A:The flat Q-on-Q subscriber group is due to seasonality.
Q:What is your target on Telkomsel Lite?
A:The fraction of Telkomsel Lite has been positive and it was really meant to serve the mass market segment.
Q:Can you provide more detail on the data center business you are looking to offload by the end of 2024?
A:We operate 32 data centers and plan to add more capacity to AIMS data world.
Q:What percentage of your customers are currently on Telkomsel Lite?
A:It's still early days for Telkomsel Lite, but the traction has been positive.
Q:Is there any way to break up how you see the synergy impact from IndiHome integration in the coming quarters?
A:We do not disclose this in detail now.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer to questions regarding specific targets for Telkomsel Lite's customer base and the exact breakdown of synergy impacts from IndiHome integration. Additionally, there was a lack of clarity on the future of the data center business and the specifics of the reclassification impacts.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Bapak
Facebook share
Hi
IndiHome BC
IndiHome reclassification
JP Morgan
Sukriti
Telekom
Telkom center
Telkomsel plan
ability
accounting
approach
auction
brand
breakdown
capability
case
centre
competitor
conduct
connectivity
consumer
customer segment
decline
household
increase
integration
level
market segment
market share
mobile
moment
offering
optimization
outlook
parent
point
progress
quarter
quota
traffic
usage
youth
TLK Transcript
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Q4 2024 Earnings Call Transcript
Unknown4-21
The earnings call presents a mixed picture. Financial performance shows slight revenue growth and stable EBITDA margins, but EBITDA has decreased. The company faces macroeconomic and competitive risks, and there's no share buyback plan. Guidance is cautious, with no strong catalysts for growth. Despite some positive aspects like digital business growth, the lack of clear dividend plans and competitive pressures balance the outlook. The Q&A reveals cautious optimism but no strong positive signals. Overall, these factors suggest a neutral stock price movement.
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Q3 2024 Earnings Call Transcript
Unknown10-31
The earnings call reveals mixed signals: modest revenue growth, but declining EBITDA and operating income due to increased expenses. The Q&A highlights competitive pressures and unclear management responses, especially on synergy and monetization strategies, which are concerning. The lack of shareholder return plans and no new partnerships or strong guidance further contribute to a neutral sentiment. Despite some growth in digital and fixed broadband, the overall financial health remains challenged, resulting in an anticipated neutral stock price movement.
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Q1 2024 Earnings Call Transcript
Unknown4-24
The earnings call presents a mixed picture. While there is growth in key areas like mobile and digital business revenues, concerns arise from declining ARPU and flat subscriber growth. The Q&A highlights management's cautious optimism, but lack of clarity on certain issues raises uncertainties. Despite positive developments like fiber optic expansion and cost optimization targets, the overall sentiment remains balanced, resulting in a neutral outlook for the stock price.
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Q2 2023 Earnings Call Transcript
Neutral8-1
TLK Report
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK 6-K
6-K
2025-08-20
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK 6-K
6-K
2025-08-01
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK 6-K
6-K
2025-07-28
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK 6-K
6-K
2025-02-11
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
