Facing Transitional Periods
TLKM’s endeavors to stabilize its revenues after sluggish performance were quite challenging. In 2Q18, its revenues, EBITDA margin, and net income margin slid 3% y-y, 25.6% y-y, and 45.3% y-y, respectively.
The transition to a digital-based technology inevitably changed its revenues’ structures. Within the last 4 quarters, the revenue contributed by the telephone segment consistently declined to 33.9%, 31.5%, 30%, and 28.1%. Meanwhile, the revenues contributed by the data, internet, and IT service segments inclined to 46.5%, 41.3%, 49.5%, and 52.5%, respectively.
Being aware that a digital-based is on the rise, TLKM ploughs into infrastructure developments, e.g. Merah Putih satellite, the Indonesia Global Gateaway (a submarine cable communication system), and 14,978 based transmission towers (BTS) — an increment of 20% y-y in 1H18. It expects that the investment results in positive revenues. Another to infrastructure investments, it made a wit decision to raising the price of data package by 4%-11%.
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