Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia (TLKM) Q3 2024 earnings summary

Executive summary

• Revenue grew 0.9% year-on-year to IDR 112.2 trillion for the nine months of 2024, driven by data and internet services amid legacy business decline.

• EBITDA was IDR 56.6 trillion, with normalized EBITDA at IDR 57.8 trillion and margin at 51.5%.

• Net income declined 5.1% year-on-year to IDR 18.6 trillion after adjustments, while reported net profit was IDR 23.0 trillion, down from the prior year.

• CapEx reached IDR 17.5 trillion, focused on connectivity and digital platforms, with CapEx-to-revenue at 15.6%.

• Market conditions remain challenging with soft consumer spending, heightened competition, and stabilization in the competitive landscape.

Financial highlights

• Digital business revenue grew 2.5% year-on-year, with a productive subscriber base of 158.4 million and digital business share of mobile revenue at 89.9%.

• Fixed broadband business saw a 200.6% year-on-year increase, driven by IndiHome integration, with 9.4 million customers and ARPU at IDR 239,000.

• Mitratel contributed IDR 6.82 trillion in revenue, up 8.7% year-on-year, with an EBITDA margin of 83.2%.

• Personnel expenses rose 12.7% year-on-year due to early retirement programs.

• G&A expenses increased due to higher provisions and normalization after a low base in 2023.

Outlook and guidance

• Revenue growth for 2024 is expected in the low single digits, with EBITDA margin guidance at 50%-52%.

• CapEx-to-revenue ratio targeted at 22%-24% for 2024, with a plan to reduce to 17%-19% by 2028.

• Telkomsel’s EBITDA margin expected at 45%-46% by year-end 2024.

• Synergy value from FMC integration overachieved IDR 1.9 trillion target for 2024, with further improvements expected.

• Unsatisfied performance obligations expected to be realized within one year amount to IDR 8.98 trillion, and more than one year IDR 4.80 trillion.