Better Performance Reaping Fruitful Outcome
TLKM’s performance comes about our estimate of 3Q18 rosier performance. The revenue buoyed by 8.8% q-q to IDR34.8 trillion thanks to all segments’ rosier performance but lackluster fixed line voice segment posting the decline of 3.9%. Another to bullish revenues, effective cost controls proved to be fruitful, e.g. narrowing personnel expenses of 18% q-q to IDR3.26 trillion and sliding general and administrative expenses of 41% q-q to IDR1.21 trillion.

Qualities Wining Subscribers’ Preference
Upward data prices in July 2018 are unlikely to cause TLKM’s subscribers to limit data spending, shown in the hike of 116.3% y-y in data traffic. It proves a boon for TLKM because the data, internet and IT services segments are the biggest revenue contributor of 54% of the total revenues. Besides, TLKM also charges its 700,000 Indihome’s subscribers for upward prices of 4%-5% from August to September 2018. However, the number of Indihome subscribers remains to grow to 4.7 million subscribers (+101.2% y-y) until the end of September 2018.

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