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 and positive growth in key business lines.

• EBITDA was IDR 56.6 trillion, with normalized EBITDA at IDR 57.8 trillion; EBITDA margin was 50.5%-51.5%.

• Net income was IDR 18.6 trillion (normalized, up 5.1% YoY), while reported net profit figures ranged from IDR 17.7 trillion to IDR 23 trillion depending on adjustments.

• Fixed broadband and digital business segments showed robust growth, with convergence penetration at 53% and digital business share of mobile revenue at 89.9%.

• Market conditions remain challenging due to macroeconomic pressures, deflation, and cautious consumer spending.

Financial highlights

• Revenue: IDR 112.2 trillion (+0.9% YoY); EBITDA: IDR 56.6 trillion; normalized EBITDA margin: 51.5%.

• Net income: IDR 18.6 trillion (normalized, +5.1% YoY); reported net profit: IDR 17.7 trillion to IDR 23 trillion.

• CapEx: IDR 17.5 trillion (15.6% of revenue), mainly for connectivity and digital platforms.

• Net debt to EBITDA: 0.6x; total liabilities: IDR 130.8 trillion (flat YoY).

• Net cash provided by operating activities was IDR 45.96 trillion, up from IDR 42.78 trillion YoY.

Outlook and guidance

• Revenue expected to grow low single digits for 2024.

• EBITDA margin guidance: 50%-52%; CapEx to revenue ratio: 22%-24% for 2024, targeting 17%-19% by 2028.

• FMC synergy target for 2024: IDR 1.9 trillion, already overachieved by Q3.

• Most unsatisfied performance obligations expected to be realized within one year, totaling IDR 8.98 trillion.