Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia (TLKM) Q2 2024 earnings summary

Executive summary

• Revenue grew 2.5% year-on-year to IDR 75.3 trillion in H1 2024, driven by data, internet, and IT services, with digital business now 89.9% of mobile revenue.

• EBITDA reached IDR 37.9 trillion, down 1.3% year-on-year due to a one-off early retirement program costing IDR 1.24 trillion; normalized EBITDA rose 1.9% to IDR 39.1 trillion, margin 51.9%.

• Operating net income increased 4.2% year-on-year to IDR 13 trillion, after adjusting for mark-to-market and other one-offs; net profit was IDR 11.8 trillion.

• Mobile customer base grew 4.3% year-on-year to 159.9 million, with ARPU stable at IDR 45,000; IndiHome B2C reached 9.1 million customers.

• Early retirement program increased personnel expenses by IDR 1.24 trillion, aiming for greater efficiency; no further ERP planned.

Financial highlights

• CAPEX for H1 2024 was IDR 11.7 trillion (15.5% of revenue), focused on connectivity, digital platforms, and data centers.

• Net debt to EBITDA ratio stood at 0.67x at end of June 2024; debt to equity was 53.7%.

• Telkomsel revenue for H1 2024 was IDR 57.2 trillion, up 29.9% year-on-year, with an EBITDA margin of 47%.

• Wholesale and international business revenue grew 13.1% year-on-year to IDR 9.2 trillion.

• Data center and cloud business contributed IDR 1 trillion, up over 20% year-on-year.

Outlook and guidance

• Revenue expected to grow by low single digits for full year 2024, with focus on digital transformation, network expansion, and cost optimization.

• EBITDA margin guidance is 50%-52%; CAPEX to revenue ratio targeted at 22%-24%.

• Continued integration of IndiHome B2C into Telkomsel to drive convergence and cross-selling.