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

Executive summary

• Revenue grew 2.5% year-on-year to Rp75.3 trillion in H1 2024, driven by data, internet, and IT services, despite legacy revenue decline.

• EBITDA reached Rp37.9 trillion, down 1.3% year-on-year due to a one-off early retirement program costing Rp1.24 trillion; normalized EBITDA rose 1.9% year-on-year to Rp39.1 trillion with a 51.9% margin.

• Operating net income grew 4.2% year-on-year to Rp13 trillion after adjusting for non-recurring items; net profit attributable to owners was Rp11.8 trillion (margin 15.6%).

• Mobile customer base increased 4.3% year-on-year to 159.9 million, with ARPU maintained at Rp45,000; IndiHome B2C reached 9.1 million customers.

• Telkomsel’s digital business revenue rose 4.9% YoY, now 89.9% of mobile revenue.

Financial highlights

• CapEx for H1 2024 was Rp11.7 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; net debt-to-equity ratio increased to 41.22%.

• Telkomsel revenue grew 29.9% year-on-year to Rp57.2 trillion, with an EBITDA margin of 47%.

• Data center revenue increased 20.2% year-on-year to Rp1 trillion; 32 data centers with 42MW capacity.

• Mitratel revenue rose 7.8% year-on-year to Rp4.5 trillion, with EBITDA and net income margins of 83.1% and 23.9%.

Outlook and guidance

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

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

• Focus on digital transformation, network expansion, and cost optimization.

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

• Ongoing investments in data centers and digital infrastructure to support future growth.