ASEAN KEY DESTINATIONS
Telkom books Rp 4.59 trillion Q1 profit
State-owned PT Telekomunikasi Indonesia Tbk ( TLKM ) booked a first-quarter profit of Rp 4.59 trillion ( US$347.9 billion ), an increase of 20.4 percent compared to Rp 3.81 trillion booked in the same period last year.
With a 16.6 percent revenue increase to Rp 27.54 trillion, Indonesia’s largest telecommunication provider recorded a triple-double digit growth in the first quarter of 2016. Earnings before interest, tax, depreciation and amortization ( EBITDA ) rose 18.8 percent to 14.66 trillion.
"This is a satisfying performance, we got double digit growth in revenue, EBITDA, and net income," President Director Alex J. Sinaga said recently.
Previously dominated by telecommunication sector revenue, the Data, Internet & IT Service sector is now considered to be the main contributor with 37.4 percent of consolidated income sitting at Rp 10.30 trillion. The sector grew 45.1 percent compared to Q1-2015.
"This growth is supported by a high growth in broadband service customers, both fixed broadband and mobile broadband Telkomsel Flash. Our Telkomsel Flash customer base increased 42.2 percent to 43.84 million," Vice President of Corporate Communication Arif Prabowo said.
For fixed broadband, led by the IndiHome program, customer numbers have grown 20.7 percent to 4.2 million customers.
"Our 4G LTE is now available in 100 cities, plus there was intensive promotion of the IndiHome Triple Play program. Both reflected in our broadband growth," Arif said.
The country’s largest telecommunication operator reported revenue growth of 14.24 percent.
The double-digit revenue growth is its first in five years. The company also recorded a 9.57 percent profit growth compared to 2014. In terms of profitability ratio, Telkom showed a slight decrease in its performance with a 14.02 return on assets ( ROA ) compared to 14.9 percent last year, but return on equity ( ROE ) increased from 24.71 to 24.97 percent.
Telkom's president director Alex J. Sinaga said that the company performed well this year to have paid out Rp 9.29 trillion in dividends. Reporting revenue of Rp 102.47 trillion, this is the first time Telkom has reached a revenue above Rp 100 trillion, the contribution of subsidiaries other than Telkomsel also increased, he said at the annual general meeting ( AGM ) on Friday.
The dividend payout date falls on May 4 this year and dividends will be paid on May 26. These will be divided into a cash dividend of Rp 7.74 trillion or Rp 78.86 per stock and the special dividend of Rp 1.55 trillion or Rp 15.77 per share. Currently, there are 98.18 billion outstanding shares.
"For capital expenditure we budget around 22 to 25 percent from the revenue," Alex said, explaining that 2016 capital expenditure would be around Rp 22.54 to 25.61 trillion.
However, the debt to equity ratio ( DER )has increased from 0.65 in 2014 to 0.78 in 2015, as Telkom liabilities rose by 30.64 percent compared to a 9.58 percent total asset increase. The company has shown more aggression to leverage financing in 2015 as long-term debt increased by 59.78 percent.
"But that DER number is still small and controllable; there is still room for more debt," Alex said.
AGM also made some staffing changes; finance director Heri Sunaryadi was replaced by Harry M. Zen, known for his previous position as Credit Suisse Indonesia director. Independent commissioner Parikesit Suprapto was replaced by Pontas Tambunan whom was a deputy in the State Owned Enterprises ( SOEs ) Ministry.
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