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 Telkomsel's 29.9% growth to IDR 57.2 trillion.

• Mobile customer base expanded 4.3% year-on-year to 159.9 million, with ARPU stable at IDR 45,000.

• Early retirement program cost IDR 1.24 trillion, reducing workforce by over 1,000, with a payback period of 2-3 years and IRR of 21%.

• Convergence penetration improved to 47%, and wholesale/international business revenue grew 13.1% year-on-year.

• Completed sale of In Building Services sites for IDR 685 billion in June 2024.

Financial highlights

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

• EBITDA for H1 2024 was IDR 37.9 trillion, up 1.3% year-on-year; net income stood at IDR 11.8 trillion, up 7.8%.

• Operating net income grew 4.2% year-on-year to IDR 13 trillion.

• CapEx realization was IDR 11.7 trillion (15.5%-20.5% of revenue), mainly for connectivity and digital platforms.

• Net debt to EBITDA stood at 0.67x at end of June 2024.

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%.

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