Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Bundle
Understanding Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Revenue Streams
Understanding PT Telekomunikasi Indonesia Tbk’s Revenue Streams
The company’s revenue streams are diverse, primarily categorized into mobile, consumer, enterprise, WIB (wholesale international business), and other services. Here’s a detailed breakdown of their revenue sources for 2024:
| Revenue Stream | 2024 (in billion Rupiah) | 2023 (in billion Rupiah) | Year-over-Year Growth (%) |
|---|---|---|---|
| Mobile | 63,788 | 62,871 | 1.46 |
| Consumer | 19,741 | 19,642 | 0.50 |
| Enterprise | 14,587 | 15,144 | -3.69 |
| WIB | 12,329 | 11,133 | 10.73 |
| Others | 793 | 1,152 | -31.18 |
| Total Revenue | 111,238 | 109,942 | 1.18 |
In 2024, the company reported consolidated revenues of 112,219 billion Rupiah, reflecting a year-over-year increase from 111,238 billion Rupiah in 2023, marking a growth of 0.88%.
The primary driver of growth was the mobile segment, which contributed the largest share of revenues, primarily due to increased cellular data and internet usage. The enterprise segment saw a decline, attributed to competitive pressures and market shifts.
Here’s a further breakdown of revenue contributions by segment as of September 30, 2024:
| Segment | Revenue Contribution (in billion Rupiah) | Percentage of Total Revenue (%) |
|---|---|---|
| Mobile | 63,788 | 56.83 |
| Consumer | 19,741 | 17.62 |
| Enterprise | 14,587 | 13.05 |
| WIB | 12,329 | 10.99 |
| Others | 793 | 0.71 |
The mobile segment remains the dominant revenue contributor, accounting for over half of the total revenue. The consumer segment closely follows, showcasing the company’s strong position in the retail market.
Year-over-year growth rates indicate that while mobile and WIB segments are expanding, the enterprise segment requires strategic realignment to counteract the decline. The overall revenue growth reflects the company's ability to adapt to changing market conditions and consumer demands.
In summary, the revenue analysis for PT Telekomunikasi Indonesia Tbk in 2024 shows a healthy growth trajectory, driven largely by its mobile services, while also highlighting areas for improvement in enterprise solutions.
A Deep Dive into Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Profitability
A Deep Dive into PT Telekomunikasi Indonesia Tbk's Profitability
Gross Profit Margin: As of September 30, 2024, the company reported a gross profit of 82,242 billion Rupiah against revenues of 112,219 billion Rupiah, resulting in a gross profit margin of 73.2%.
Operating Profit Margin: The operating profit for the same period was 32,450 billion Rupiah, yielding an operating profit margin of 28.9%.
Net Profit Margin: The net profit for the nine months ended September 30, 2024, was 23,021 billion Rupiah, leading to a net profit margin of 20.5%.
Trends in Profitability Over Time
Comparatively, the gross profit margin for the previous year (2023) was 74.0%, indicating an increase of 2.2 percentage points. The operating margin decreased from 31.5% in 2023 to 28.9% in 2024. Meanwhile, the net profit margin saw a decline from 22.8% in 2023 to 20.5% in 2024.
Comparison of Profitability Ratios with Industry Averages
As of 2024, the telecommunications industry average gross profit margin stands at approximately 70%, indicating that the company outperforms the industry average. The operating profit margin average is around 25%, where the company also exceeds this benchmark. However, the net profit margin industry average is about 22%, suggesting room for improvement in this area.
Analysis of Operational Efficiency
The operational efficiency can be illustrated through the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Expenses | 29,977 billion Rupiah | 28,864 billion Rupiah |
| Depreciation and Amortization | 24,250 billion Rupiah | 24,081 billion Rupiah |
| Personnel Expenses | 13,156 billion Rupiah | 11,678 billion Rupiah |
| Gross Margin Trend | 73.2% | 74.0% |
Despite a slight decrease in gross margin, the company maintains a strong position in terms of operational efficiency relative to its peers. The increase in operating expenses can be attributed to higher personnel costs and depreciation, reflecting investment in infrastructure and workforce.
Overall, the company showcases solid profitability metrics, outperforming industry averages in several key areas while also revealing opportunities for enhancement in net profit margins.
Debt vs. Equity: How Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Finances Its Growth
Debt vs. Equity: How PT Telekomunikasi Indonesia Tbk Finances Its Growth
Overview of the Company's Debt Levels:
As of September 30, 2024, the company's total short-term debt stood at Rp10,655 billion, while long-term debt was Rp62,484 billion, resulting in total debts of Rp73,139 billion.
| Debt Type | Amount (in billions Rp) |
|---|---|
| Short-term Debt | 10,655 |
| Long-term Debt | 62,484 |
| Total Debt | 73,139 |
Debt-to-Equity Ratio and Comparison to Industry Standards:
The debt-to-equity ratio as of September 30, 2024, was 35.81%, compared to 28.82% as of December 31, 2023. This ratio is below the industry standard of 2:1 set by bond covenants, indicating a relatively conservative leverage position.
Recent Debt Issuances, Credit Ratings, or Refinancing Activity:
On July 4, 2024, the company issued shelf register bonds amounting to Rp240 billion with an annual interest rate of 6.50%. Additionally, it issued sukuk Ijarah amounting to Rp10 billion with the same interest terms. The company's bonds are rated idAAA by Pefindo, reflecting strong creditworthiness.
Balancing Debt Financing and Equity Funding:
The company maintains a balance between debt financing and equity funding by consistently monitoring its debt-to-equity ratio and ensuring compliance with its loan covenants. As of September 30, 2024, total equity attributable to owners of the parent company was Rp135,702 billion, which supports its financial stability.
Capital Structure Overview:
| Capital Structure Item | Amount (in billions Rp) | Percentage of Total |
|---|---|---|
| Short-term Debt | 10,655 | 5.10% |
| Long-term Debt | 62,484 | 29.92% |
| Total Debt | 73,139 | 35.02% |
| Total Equity | 135,702 | 64.98% |
This structure reflects the company’s strategy of leveraging debt while maintaining a robust equity base, supporting ongoing investment and growth initiatives in the telecommunications sector.
Assessing Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Liquidity
Assessing PT Telekomunikasi Indonesia Tbk's Liquidity
Current Ratio: The current ratio as of September 30, 2024, is 0.85, compared to 0.91 as of December 31, 2023.
Quick Ratio: The quick ratio for the same period is 0.63, down from 0.68 in the previous year.
Analysis of Working Capital Trends
As of September 30, 2024, the working capital stands at Rp (17,567) billion, compared to Rp (16,504) billion as of December 31, 2023. This reflects a decrease in short-term assets relative to short-term liabilities.
| Period | Current Assets (Rp billion) | Current Liabilities (Rp billion) | Working Capital (Rp billion) |
|---|---|---|---|
| September 30, 2024 | Rp 27,188 | Rp 44,755 | Rp (17,567) |
| December 31, 2023 | Rp 29,057 | Rp 45,561 | Rp (16,504) |
Cash Flow Statements Overview
The cash flow from operating activities for the nine months period ended September 30, 2024, is Rp 45,955 billion, compared to Rp 42,777 billion in the same period of 2023. This indicates a positive trend in cash generation from core operations.
Cash flows from investing activities show an outflow of Rp (18,485) billion in 2024, down from Rp (22,733) billion in 2023, suggesting a reduction in capital expenditures.
Cash flows from financing activities reflect an outflow of Rp (24,035) billion in 2024, which is consistent with the previous year’s outflow of Rp (24,107) billion.
| Cash Flow Activity | 2024 (Rp billion) | 2023 (Rp billion) |
|---|---|---|
| Operating Activities | 45,955 | 42,777 |
| Investing Activities | (18,485) | (22,733) |
| Financing Activities | (24,035) | (24,107) |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the total cash and cash equivalents amount to Rp 24,540 billion, down from Rp 29,007 billion in December 2023. This decline highlights a potential liquidity concern as cash reserves decrease.
The net debt-to-equity ratio has increased to 35.81% from 28.82%, indicating a growing reliance on debt financing which could impact liquidity in the long term.
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Cash and Cash Equivalents (Rp billion) | 24,540 | 29,007 |
| Net Debt-to-Equity Ratio (%) | 35.81 | 28.82 |
Is Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Overvalued or Undervalued?
Valuation Analysis
Price-to-Earnings (P/E) Ratio
The current P/E ratio for PT Telekomunikasi Indonesia Tbk is 21.7 based on earnings per share (EPS) of Rp178.42 for the nine months ended September 30, 2024.
Price-to-Book (P/B) Ratio
The P/B ratio stands at 1.4, with a book value per share of approximately Rp127.73.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is currently at 10.5, calculated from an enterprise value of Rp294 trillion and EBITDA of Rp28 billion.
Stock Price Trends
Over the past 12 months, the stock price has fluctuated between a low of Rp3,200 and a high of Rp4,500. As of October 30, 2024, the stock price is noted at Rp3,850.
Dividend Yield and Payout Ratios
The dividend yield is calculated at 4.6%, with a cash dividend distribution of Rp178.50 per share for 2023. The dividend payout ratio is approximately 60% of the net income.
Analyst Consensus on Stock Valuation
Analysts currently have a consensus rating of Hold on the stock, with a few suggesting a Buy due to expected growth in revenue from expanding digital services.
| Metric | Value |
|---|---|
| P/E Ratio | 21.7 |
| P/B Ratio | 1.4 |
| EV/EBITDA Ratio | 10.5 |
| 12-Month Stock Price Range | Rp3,200 - Rp4,500 |
| Current Stock Price | Rp3,850 |
| Dividend Yield | 4.6% |
| Dividend Payout Ratio | 60% |
| Analyst Consensus | Hold |
Key Risks Facing Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK)
Key Risks Facing PT Telekomunikasi Indonesia Tbk:
The financial health of PT Telekomunikasi Indonesia Tbk (TLK) is influenced by various risk factors that can impact its operational and strategic performance. Below is an overview of the key internal and external risks the company faces as of 2024.
1. Industry Competition
The telecommunications industry in Indonesia is highly competitive, with major players including competitors in both mobile and fixed-line services. The aggressive pricing strategies can erode margins. In 2024, the company reported a revenue of Rp70,557 billion attributed to data, internet, and technology services, which is a significant area of competition.
2. Regulatory Changes
Recent regulatory changes can significantly affect operational costs and compliance requirements. For instance, Government Regulation No. 58 of 2023, effective January 2024, modifies income tax withholding rates that could impact cash flow. The company has been proactive in ensuring compliance with such regulations, with costs related to tax assessments amounting to Rp8.8 billion for the first nine months of 2024.
3. Market Conditions
Fluctuations in market conditions, including economic downturns, can impact consumer spending and business investments. As of September 30, 2024, the company’s total equity stood at Rp135,702 billion, reflecting the need for robust financial health to withstand market volatility.
4. Operational Risks
Operational risks are inherent in the company's extensive network and infrastructure management. For the nine months ended September 30, 2024, operational expenses reached Rp29,977 billion, indicating significant costs associated with maintaining and upgrading telecommunications infrastructure.
5. Financial Risks
Financial risks include interest rate fluctuations and credit risks. The company reported that as of September 30, 2024, it had Rp27,181 billion in variable rate borrowings, exposing it to interest rate risk. A 25 basis points increase in interest rates could decrease profit or equity by Rp68 billion.
6. Strategic Risks
Strategic risks arise from the company’s long-term planning and execution. The company has a debt-to-equity ratio of 35.81%, indicating a balanced approach to leveraging for growth while managing risks associated with high debt levels.
Mitigation Strategies
The company has implemented several strategies to mitigate these risks, including:
- Enhancing regulatory compliance frameworks to adapt to changes.
- Investing in technology to improve operational efficiencies and reduce costs.
- Diversifying revenue streams to minimize dependence on traditional services.
- Maintaining a strong capital structure to withstand economic fluctuations.
| Risk Factor | Description | Financial Impact |
|---|---|---|
| Industry Competition | High competition affecting pricing strategies | Revenue from data services: Rp70,557 billion |
| Regulatory Changes | Changes in tax regulations impacting cash flow | Tax assessments: Rp8.8 billion |
| Market Conditions | Economic fluctuations affecting consumer behavior | Total equity: Rp135,702 billion |
| Operational Risks | Costs associated with infrastructure management | Operational expenses: Rp29,977 billion |
| Financial Risks | Exposure to interest rate fluctuations | Variable rate borrowings: Rp27,181 billion |
| Strategic Risks | Risks associated with long-term planning | Debt-to-equity ratio: 35.81% |
Future Growth Prospects for Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK)
Future Growth Prospects for PT Telekomunikasi Indonesia Tbk
Analysis of Key Growth Drivers
Key growth drivers for PT Telekomunikasi Indonesia Tbk include:
- Product Innovations: The company continues to advance its digital services, focusing on enhancing its mobile and internet offerings.
- Market Expansions: Plans to penetrate underserved markets in rural Indonesia are underway, potentially increasing subscriber growth.
- Acquisitions: Strategic acquisitions in the telecommunications sector, particularly in digital infrastructure, are being pursued.
Future Revenue Growth Projections and Earnings Estimates
Projected revenue growth for 2024 is estimated at Rp 149,897 billion, reflecting an increase from Rp 148,998 billion in 2023. Earnings per share for 2024 is estimated at Rp 178.42, compared to Rp 196.84 in 2023.
Strategic Initiatives or Partnerships that May Drive Future Growth
Recent partnerships with technology firms aim to enhance service delivery and customer experience. Additionally, investments in 5G technology are expected to bolster competitive positioning.
Competitive Advantages that Position the Company for Growth
The company benefits from:
- Established Market Presence: A strong brand with a significant market share.
- Extensive Infrastructure: A well-developed telecommunications infrastructure throughout Indonesia.
- Robust Financial Health: Total assets as of September 30, 2024, stand at Rp 285,134 billion, with total liabilities of Rp 130,783 billion, highlighting a solid balance sheet.
| Financial Metrics | 2024 Estimates | 2023 Actuals |
|---|---|---|
| Total Revenue | Rp 149,897 billion | Rp 148,998 billion |
| Earnings per Share | Rp 178.42 | Rp 196.84 |
| Total Assets | Rp 285,134 billion | Rp 287,042 billion |
| Total Liabilities | Rp 130,783 billion | Rp 130,480 billion |
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Article updated on 8 Nov 2024
Resources:
- Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.