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.

• Normalized EBITDA reached IDR 39.1 trillion, up 1.9% year-on-year, with a margin of 51.9%.

• Early retirement program cost IDR 1.24 trillion, increasing personnel expenses but expected to yield long-term efficiency.

• 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.

• Telkomsel’s digital business revenue rose 4.9% year-on-year; new product launches and FMC strategy supported market share.

Financial highlights

• EBITDA for H1 2024 was IDR 37.9 trillion (margin 50.3%), down 1.3% year-on-year due to ERP costs.

• Operating net income grew 4.2% year-on-year to IDR 13 trillion, excluding one-offs; net profit was IDR 11.8 trillion (margin 15.6%).

• CapEx realization was IDR 11.7 trillion (15.5% of revenue), mainly for connectivity, digital platforms, and data centers.

• Net debt to EBITDA stood at 0.67x at end of June 2024; net debt-to-equity at 41.22%.

• Cash and equivalents at period end were IDR 25.5 trillion, down from IDR 40.5 trillion a year earlier.

Outlook and guidance

• Revenue expected to grow by low single digits for full year 2024.

• EBITDA margin guided at 50%-52%; CapEx to revenue ratio targeted at 22%-24%.

• Focus on digital transformation, network expansion, and cost optimization; ongoing investments in data centers and digital infrastructure.

• No further ERP planned in the near future as transformation objectives have been met.

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