TLK - Earnings call transcript Q2 2021 | Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk

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Operator

Good day, and thank you for standing by. Welcome to the Telkom's First Half of 2021 Results Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Andi Setiawan. ahead. go Please

Andi Setiawan

all and Ladies Conference A.J. Results. welcome PT presentation August to released our available Thank www.telkom.co.id. website, for and the Indonesia Today's next the audio XXXX, our will There be of to XXst Call overview results available from and on XXXX be the reports after days. the First Telkom an Q&A webcast, given the are our X provided And on you, is on participants after participate in that, CEO. will opportunity recording gentlemen, call are the Half We for the session. of an

harbor. Director; you to from materially results estimations we may let forward-looking risks could or the contain projections, Before results Director; Venusiana today's Afriwandi during Fajrin Director; as Director; and FM what as Mulya IT his expectations uncertainties involve as Please, Management call cause Mr. hand Witjaksono to Portfolio Management safe Mr. we Edi Mr. present and differ Director; within Director; International may that Ms. and Adriansyah, Service Directors actual questions Network me Consumer Witjara call. to now Actual Mr. for of may and from Mr. Solution Mr. Business Director; the and These Rasyid response remind Setyawan differ statements Risk Management Mr. start, Ms. voiced of today's and substantially guarantee Risk Capital as it's Enterprise our discuss. Ramzy Goh gentlemen, Finance been who Ririek. with and Chief and of as discussion Business Mr. and Telkom Ladies Herlan of over Indonesia does overview. Telkom's Muhamad to Wijaya Hendri held Board are Officer; today. Director; Board and Supriadi Digital Director. Wijanarko Service and the Human Adriansyah of as us to Mr. any in Marketing Service I Heri introduce Strategic CEO, and joining the reliance taken as Ririek as Directors which Also Wholesale as pleasure the Budi Bogi President, as Ririek now have my Mohamad Mr. President Director Rachel as Telkomsel: are Finance Director. Syam as may actions Executive call today: not Director; Mr. meaning

Ririek Adriansyah

results right revenue, for in grew healthier and track throughout Its trillion, as supported XX.X IDR the additional that by Thank resulted slower end by the revenue profitability. appreciate gentlemen. year-on-year. but increased X.X%, condition of Telkom reached and stronger revenue continue and XX.X XX.X%, and profitability. year. this growth by XX.X%. in engine XXXX. XX.X%, the towards subscribers IndiHome resulted fundamentals significant a from increase also year consolidated a margin with the performance strong increase in The from the half last of XX.X% IndiHome EBITDA ARPU. better to of first of XX.X% to of improve revenue continued profitability grew pandemic, This our are year-on-year. X.X% better really half call. COVID-XX conference the plans Good Welcome net IDR for our business this achievement a showed Expenses positive prolonged XX.X% on trillion increased in ladies increased your call at you, rate afternoon, recording in income the year to X.X%, Andi. Amidst XXXX while by by results. participation of first saw Telkom EBITDA of a We

XXXX, the user, reached Ladies Telkomsel's consistently Meanwhile, second a to almost and X.X% substantial reached as ARPU quarter. Services by and revenue per and has XXXX, August in XXX,XXX more around X.X% and got additional explore Gojek, segment successfully of data of cellular with performance tower MoU previous key compared digital and new situation Digital amidst the XXX,XXX Moreover, Kredivo, improved During and to performance XX% grew X.X% quarter company, Data a and pandemic of positive of Digital collaboration improving business Connectivity shown grew total despite grew trillion, and IT previous biggest Digital contributor strategy consumption first to gentlemen, performance. its trillion, recorded XX.X new marketing been X MDI investment have X.X also MDI in has and fund Services with the intelligent companies that's year-on-year. IDR After telco revenue Enterprise Ladies and In other group Telkomsel the is synergy XXX,XXX trillion, second lines. build saw technology of brought achievement, installation gentlemen, activities half are in the of investments, down business. net might unicorns. fixed also value. cooperation more saw well-diversified been successfully of supported data IPO slow of on turnaround of Business NIUM Business and by talent transformation. which year-on-year Solutions. start-ups segment has synergy -- quarter Lifestyle, next infrastructure, With products in X.X an MDI and XXXX, IDR this healthier an Revenue May exit Digital to improvement of to XX Business, currently, leading Venture meantime, and the driver remained by with in Telkom's consolidated has of MDI grew the be business an Among X Digital Telkom's strategy. strong digital of than digital contribution added customers and by consistent company. by increased the development invested X investees' XX.X%. challenging in companies. companies year-on-year, XX Enterprise Telkom in segment in center are our more capability Telkom's revenue IDR parties. and Telkom's reflecting additional IndiHome Digital from environment. services. revenue. countries, increase have business, Services and has acceleration XXXX by third development Telkom companies signed to the portfolio, XX.X%. XX.X% consolidated from to by This AXP digital acquired that increasing an increasing as sales and than the Payload line XX% IDR Capital, MDI, In of Microsoft done the and in reached contribution in period, outstanding in and impact Wholesale unicorns Advertising digital Telkom retail terms XX X physical demonstrates than continued XX.X% income, International Telkomsel solution GB and expected the IDR Business. to year. Enterprise portfolio

increased currently, which enhance Jakarta. near our a Data XX and We XXX in a by XX X total in Center, X XX.X% data certified new as year-on-year. center revenue total with Hyperscale are and and contributed meters around business. data overseas, or we billion To of domestic X the building data of Tier in are capacity XX,XXX center up XX cloud operate center, of XXXX, capacity, developing In progress square IDR center capacity facilities, first is site megawatts. of of area in data we half Today,

capacity services. core and mid-single grew final to Center expected to will In me with complete improved first Data of within year. assets, or remarks, more year Hyperscale realignment enhance successfully consolidated the around half EBITDA June margin will Mitratel efficient stand-alone stage of first conclude have the to business, ratio Mitratel group XX guidance XXXX to tower XXXX. of portfolio and booked after IDR end the XX.X% tower Hyperscale Telkomsel first by to time revenue XX,XXX the At stage, our be is we XX.X% capacity Data in XX from gentlemen, Mitratel consolidated Our towers X.XX One, half in of to my and Center stages, will put by we is Mitratel in megawatts. of a expect own share also XXXX actually of XX.X% revenue half let the focus first that as value digit. the a completed of tenancy at of grow Ladies and the trillion low- megawatts. in make tower last with as same on for main XXXX. of The company X.X XXXX to year-on-year. its

Second, EBITDA stable. be is relatively expected margin to

Third, additional CapEx for excluding of or the XG. on CapEx be around expenditure group revenue, my is capital XX% is remarks. ending expected That to you. Thank

Andi Setiawan

Thank you, Ririek.

the session. will question, [Operator now Q&A the Instructions] We please? have begin may first we Operator,

Operator

HSBC. of Your comes the from first from Choudhary Piyush question line

Piyush Choudhary

set the management the team couple questions. of to great of results. for Congratulations A

share competitive on your light hikes. have business, We some on Firstly, taken could dynamics? mobile tariff you the

much first the stage, development potential if megawatts, total that? how is in likely the Hyperscale So how sustain? to spent is Data the for already center. already like What annually data megawatts the is Secondly, is is capacity And the hikes you XXX levers Center coming, for of business? of on the XX presold? XXX mobile [menu]? on in can ARPU much And new other share what And CapEx tariff are

Rachel Goh

the is Rachel. your market this first Piyush, competitive I'll take mobile regarding question dynamics.

your are end is RPMBs it's signal the mobile pricing are need to strong since to to on the and halt necessary ARPU? that to market. taken We already outlook that X, what's industry I an recap which practices and tariff that Just industry. in sure our think as is, initiative to of the question to quarter profitability the has unhealthy Telkomsel the make sustainable hikes good

over we Difficulty] So progressively our prices have phases Unfortunately... we few the unlimited, had in stopped increased [Technical months. and last

Andi Setiawan

Hello? A.J.?

Operator

speaker lost line the over. Pardon have for interruption, Other please we the presenters, Rachel. take

Andi Setiawan

take you Heri, over? can

Heri Supriadi

second -- while first Can question I the from we're from question? continue the with waiting continuation

Piyush Choudhary

Yes.

Heri Supriadi

for of second that that under XX the capacity CapEx hyperscale here. build construction, It total currently question, million. in Piyush, can is property USD around that the have we X/X the new On we are the the

demand, So -- -- that build of gradually, to I we built. we're already the the with now think going expanding think I Xx along

have situation to this users, the user in or I many? the we selling now, now. think, I that think potential of, are right we that's How users. presell process the So client

our answers around already example, in of, Hope think, XX%. It info, question. there I means your your for in that selling For Singapore, in utilization is a XX%; in data list Indonesia, around we for Telin center these have the capacities. demand

Piyush Choudhary

helpful. this Yes. very is Pak,

Rachel Goh

back. Piyush, I'm I continue? Should

Piyush Choudhary

Yes.

Rachel Goh

Yes. Hello?

stages. have I So prices think already started changing we in the

seeing be and So should a RPMB we healthy I ARPU, think terms pickup. in of

However, second us. now are also hurting headwinds that the of COVID we -- facing in now Indonesia round the there next are that's wave with

up are staying has and seeing yet. mobility customers picked in, We not more

over So the see we those some question. might we first to comes that to Nevertheless, challenges we I and will hope then that improving be are it when stabilize will of time. ARPU. ARPU your expecting answers foresee

Operator

line from from Arthur of question the comes Pineda Citigroup. next Your

Arthur Pineda

please. questions, Three

to seemed have just Firstly, on significantly housekeeping, the be OpEx the bookings clarification if we one-off Q-on-Q. first you one. can like I'm jumped any some expenses there that on That's and get is G&A of? items, wondering, should aware personnel

on X regard deal, how digitization? I'm into you the had on if for happen and to to quite investments, deal around Second get cost these question And clarity you $XXX what third question, I with Is the size actually What investments? see can Microsoft? of would Microsoft you stake a any take side. can I the or with big any which unicorns that stakes understand MDI million on you've additional is invested normally with the curious expect this. on actually specific have. targets revenues with you there this savings do

Heri Supriadi

I'll Arthur, answer to try question. your

progress because increase of second to this the, have of cost basically many, of, think, many company that require think, development. us G&A cost, I the, one cost, in have on items I then performance year. corporate the, I some is related the and paid because quite with is I we think, cost, this I expertise export I consultancy it quite line plans, think, year think, in on This on this we or, on bonus personnel This related. personnel to think, last And is the one. it that quarter First

it also I the to rate increased I on to the, with think, it the also contribution increased our think contractual this expected the, to one, pension exposure the basically, have pay discount the to But benefit our, still declined, employees. the think, of I think, pay make, becoming the the not thing. attractive manage I think, also that means we Some -- because attributable one-off the We are the reason retain one the, kind to also, and I to also growth. That of talent. talent attract I think, can this is

Arthur Pineda

this? for Pak just these next Heri, we so remain that, levels going quarters? to Is look at at cost it items, clarify should into these that should how few the

Heri Supriadi

to going other. basically, cost of manage the think, try we the I employees to

I time, basically think try we of the slightly can that higher. have growth. think any last overall, And one-off XX We million to countries. to XXX something I that this make manage increased, even But this currently already of in don't course, MDI the year with can assets. kind more, regard more to about I compared We along in manage think, invest the moderate becoming USD density investment, MDI start-ups one.

So we I the kind return we I can compare far, also think, mark-to-market that think, we do I with, a pool. what of, big think say periodically and

the So basically, written from is, investment. of itself. we That's of variation, have return start-up the I globally. this in depends I think, investment on situation think, quite the our or the about, that same The one stage MDI operates the size

Arthur Pineda

Understood.

million $XXX deployed this has that already? size? So Or fund is the been

Heri Supriadi

around the fund $XXX is from total, in think, -- XXX around I size, fund million. internal, The plan

incurred think the Now $XXX in I of $XXX last process we million the of that, million.

quite plan. investment think So have I we many

Ririek Adriansyah

the to are you aware, retail is Indonesia terms compared in the similar side. behind with other probably improving like facilities those Microsoft on countries a the side, country of is as Well, of

Microsoft one opportunity we that steps of working is markets, have. actually the So to those explore is our

just So can MoU. of have don't as We plan, but of We it be BXC. the laid the can the at continuing this number detail a BXB, signing full BXG, yet our down well a be point.

consumption companies believe is at numbers is other Indonesia. and we do the we So And one a have that we continue that the may digitalization this of partners don't we IT in huge point, working yet. Microsoft opportunity having with similar and the with because have

Operator

Foong Your next of line from question from comes Chen CIMB. Choong the

Foong Choong Chen

This me, to questions from Three earlier is Foong the from CIMB. basically follow-ups questions.

mobile are Rachel, wave with the the headwinds that COVID-XX on in cases just some seeing next we business, Firstly, you mentioned Indonesia. now of

this, of lower to appeal could terms everybody one. think sort to Are their you So players? smaller the some thoughts you beyond steady of this holding will question to is get continue going of competition. just prices, we in even to to potentially trying perhaps your adjusting consumers development the and just power? Or spending as of the because some whether That's I prices risk up, that wanted see players seeing of see you the including number think smaller

million Second land? that right? that to just Or that land the regards just phase. question to wanted acquisition mentioned, clarify Center, this is with the Hyperscale the my was the to I for leased? is Data does regards include that the first the Is third again $XX with of And And question is MDI.

million. those the the from You current potentially up Yes, that portfolio X And mentioned that what terms is the are $XXX of see under in sort $XXX current Or million going MDI's the we fund that at? questions. values? AUM AUM management? we what's are of Is my capping value further do

Rachel Goh

question. Foong, I'll take first your

most certain PPKM in Foong, So indeed, yes, segments, spending and from this also lower the power indeed, rise the seeing is, mass bigger are we Indonesia, with COVID there segment.

Telkomsel, address we're affordability denomination we the looking into including here, operators factor. to make the lower sure So now

reducing denomination customer making base. more towards not smaller for it but towards the in So affordable prices,

Heri Supriadi

the and does on for course, it Foong, costs. potential MDI, on million, increase then investment acquisition there's $XX first the only, land is of on one. it this we're stage the to the going And of include

logistic think I growing opportunities know, high. others. region, the think, and the start-up may in digital in are we you And very As many have of the, this I still health,

one. our So think, we vehicle I still potential on see that investment of, this

this external go we more digital. strategy So to go the, basically with we, be to these aware, whenever build that as I choose to say, of the let's them, continue think is by, internal Please see a part can one for we we our companies, go see let's to to also I making both say, digital. synergies also company or what think, our

Foong Choong Chen

land. the and value have Okay. X? And X of And the now digital X of the for is you another mentioned Pak acquisition includes Heri, Phase Phase Is already? what also for current bought million the just Or you is that the the land just investments? that $XX land these follow-up Phase

Heri Supriadi

this X is of basically we $XX And what disclose value the We land. then unfortunately, the, already basically, is on the campus for out question cannot your the on that one. land the The bought one. million,

For in in happened. our IPO -- the planned you from see have example, they around of value that you the gain a of market I $X.X investment if if around already this one see already Kredivo, one think million the can We billion. $XXX

that have one-on-one think part. have I can if for some, think, we I a -- color you this on to one

Operator

from line question next of the Danareksa. BRI from Niko Margaronis Your comes

Niko Margaronis

to for good Congratulations the teams. results both

data is first on, the centers. my basically, question on yes, So

capacity that mentioned mentioned group Question of much mentioned internal you space? much one. Is total media cooperation project between of there's that is earlier or extensively? is for That's purposes? a megawatts. of And for the currently are this that You What X been the Telkom. between number in some has that How some scheme used from of about used outlets the Telkom it's couple has that last about sides is the what capacity is Yes, Telkom as days a potential cooperation? that -- that currently. considered question can is XX% for ICON+ been that how around be the worked initiative both cooperation XX about in And SOEs utilized here are two the you scenarios purposes? what broadband and number in fixed PLN new this

Heri Supriadi

question. the for you thank Niko, Pak

for of we use for our On The think, for client about purposes. internal our one. on think XX we capacity this rest, XX% I use this the megawatt I utilization internal use,

the about that's So utilization.

Pak Ririek think do will I question, the On second that.

Ririek Adriansyah

during the House of Representatives. was made Minister Niko. the Thank of you, the The with SOE by meeting Pak segment

and it was So just -- yesterday.

PLN cannot information we the that discuss to don't you started or So yet point. Thank give ICON+ with you. so at this anything we any

Niko Margaronis

All right.

a I data Just have centers. follow-up the on

new you maybe How On squeeze can this hikes -- Telkom On a to -- the of point? the more what new Are driven -- price relation hikes. And do to in participant intends one question, much at I XX-megawatt it's occupy how from increase to basis the that price you selectively are follow-up of confident for promoted that? or Sakti advantage how, at the I mobile those And question implemented? you hikes? previous Yes, nationwide how are may. And a this capacity, to will take if has to driven packs what a point on the basically, like, this not other still or instance, price Combo has in so series? unlimited yes, MAX do outlets those are this?

Heri Supriadi

Budi?

Budi Wijaya

Thank you.

related we the -- the ecosystem purposes serving And data the external of for one to XX% predict the global part internal, the the telco, -- for data of on center tech player, of for not is new for Thank And rest is the global on than purposes. more center data the intention center you. utilization. the The the is center, this this which local not the giants. data of is For is mostly player.

Heri Supriadi

think question... I Rachel, that Ibu

Rachel Goh

Heri. Pak Thanks, Okay.

wasn't price few of And for So that, from with half in to price were packages, of started it we that stopped cities. hike, questions. withdrawal year. launch it a hikes, We was the wasn't was end of was It had it and just we really increasing the QX. but much selected nationwide. If hikes more -- price form since where for unlimited, unlimited a selected progressively And launched hence, end it about more. a more picked for few only cities did unlimited. a in the of We not the QX, it's so a

with we packages, removal the had but prices gave quota. So we of -- of unlimited, more the reduced reduction the packages,

in for we've very try might more hopefully RPMB a and And level that it strong on level, So our we stabilized hence, value more healthy. see or look are will competitive keep in ARPU you to and customers, or grow. reduced eye -- making sure an but the PPMB ARPUs reduction can maintained

So this how we is did that.

make basically also is Internet, customer learning base, the right ComSak, BTL our of we that our we're our machine for have been recommending existing sure which terms using for packages is only which packages our personalized customers. In to models basically

to of higher those So customers promote low-denomination If who are higher customers low and who them and more kind favor of in payloads, we'll we denominations, higher will volumes more are denomination are offer using them. ComSak packages. then

things different affected the are wave vouchers, cetera, of outlets new those who So et like are also physical offering by COVID. for

there of various we them. kinds all types so of So acquisition patterns packages that's vouchers find are that and or well packages there from out suitable are something usage as all as will for patterns affordability customers putting different

hope that the we this, competition their correct with can So pricing. also

that We are for will in seeing Thanks. this QX QX the and recent be weeks, will industry the some movement the hope in we and continue whole and healthier overall.

Operator

question a have from [Operator the Instructions] line follow-up of Choudhary. We Piyush

Piyush Choudhary

please, questions, if I Two may.

ARPU ARPU detailed Firstly, share initiatives lifting good is some subscriber could you partnership Secondly, addition has you revenue also nicely. would or taken. that Gojek, you in But partnership management Could rate? Any to due to Memo the accruing churn this your or subscriber on on Gojek up of uplift and various have know. benefit addition tangible reduction be kind outlook benefits have with how the extremely IndiHome, thinking year? been in share the about the Info for tangible like you

FM Venusiana

the semester IDR we the current for 'XX, -- of XX of to subscriber the Piyush, growth trend around And IndiHome given expect in XXX,XXX relatively second ARPU semester sustainable. be first importantly, to will pattern semester at more new 'XX, revenue IndiHome track. 'XX. on similar the we in Does add Piyush? your this first But question, least target remain answer in customers

Piyush Choudhary

-- okay, yes. But yes. Yes,

Budi Wijaya

MyAds also Q-on-Q the increasing the quite think in we This than given with of around use, increasing and Related in reseller last also in we XXX%. budget the that of the increasing and with ARPU [indiscernible], It's Gojek X%. do as are the terms we XX%, in of terms quarter, Okay. business. unit is we investment project is terms meaning Gojek. the also terms significantly, did the to And increasing our increasing increasing certificate, did is preference driver what [indiscernible] XX%. to And in more I that a we SSDI of also that the -- the

Operator

Macquarie. next [Operator [Arindra line Your of from Instructions] question Kristyawan] comes the from

Unidentified Analyst

just have questions. X I

question, on IndiHome update the subscribers missed this plan into the year next about the and us second growth actually, And question, First question can -- you response going your year. IndiHome, Mitratel? apologies, on for I on for IPO outlook earlier

Hendri Syam

Pak Arindra, submission itself for the IPO do listed I And IPO be of in going first think the the the on we Mitratel, plan plan to November. registration for of to plan the today.

So book building we have and listed in November.

So that's in in process to our planning related and activities IPO are itself. plan. Currently, of other the we process show the road the

On Ibu to want the on IndiHome, this and... subscribers the is the answer -- I you think, Venus, year this one target what

FM Venusiana

Okay.

semester the Given mobility same the to first year, the on 'XX, the pandemic for trend get target I But first the growth similar semester. semester with 'XX, customers, situation. government next off-cycle think new the utilization. ongoing, to ground we subscriber the it at for depends the least we on second in the If still

the sure So need the more visit make that the that for because contract quality or force and easy can the we get like to selective the valuation the visit sales we customer to XX-months to example, to offer it's house. IndiHome to to customer with be customer,

Hendri Syam

now, and believe in is it remain still demand, Ibu demand to the strong. answer installation very one, we right to of years We next try X-year strong. Venus' -- X quality terms From quality this up challenge a the, I Adding also, the is on see think, this demand the by we think, of I we have minimum for least And increase to the on. because COVID have one. of having so our at situation contract on the to some, customer

I are also still already We result think, mentioned in markets good I by So try promising. the us productivity. This this the Venus. brings and to -- as Ibu financially to result, still well efficiency year, increase, think this

the of So that's, situation IndiHome. about I think,

Operator

have Niko Danareksa. We from BRI Margaronis from follow-up a

Niko Margaronis

the of progress about I this you interpretation. on megahertz? on -- spectrum XX on the switch the XX-megahertz finalized And a frequency open So and, additional the be will frequency, for wanted I expect does XX% How refarming. your to bit see check this XG may is it's guidance, When How in statement the It ask to my I this, current about investments the CapEx. to I your guidance? also that says to mean? revenue, are used actually This for understand this yes, of -- be going excluding understanding. to XG. see what this mean yes,

Hendri Syam

later answer I first Okay, to the Niko, question. will

I for progress -- it's planned of CapEx the the the year be put CapEx, we'll still terms related we in the end spectrum, requirement year. the And the think X.X for XG, Hopefully, think reallocation of for from to the ongoing. finished. September, the in this I already the of budget

Heri Supriadi

So basically, actually. Hendri Pak including what mentioned XX%, is the XG,

So that's the I the think our XG for the still remain, outlook because the -- counterparty -- CapEx. also CapEx

Hendri Syam

of terms We're the in implementation limited still the of XG.

Niko Margaronis

Right, right.

that or CapEx maybe to in going year years. So that, to can -- maybe may sales the just follow intensified forward, more following ratio maybe next up, that that and means XG investments increase be have can

Hendri Syam

Telkomsel year, limited in I -- XXXX. X.X of CapEx think and massive deploy the wait terms have quite currently, -- XX.X. is until But I we [XXX.X] will And maybe next not the X.X a think to countries XG the the spectrum. spectrum, but use especially implementation, only

Niko Margaronis

regards Right, transfer With more right. Maybe squeeze Telkomsel to I the in Mitratel, future? more planning can question. is to foreseeable assets Mitratel one to

Hendri Syam

Thank you, Pak Niko.

finalizing Telkomsel towers of of necessary. yes, meant transfer the And in of tower, I X,XXX plan to think we're it this [indiscernible]. the of want Mitratel. Telkomsel currently it focus in transfer the the then to the asset on process On because Basically, is the business

the think have It's If that on in what ask think market. I supposed it the cost, going much mark to one. you that I it's to how we has participant's close be come to

I -- on the but basically, open of -- to is this in going it then company. we're the issue plan So good release upon open already the of think, the transaction, day

Niko Margaronis

Okay.

is new already towers transferred been this to in right? the in just towers X,XXX X,XXX past, the to confirm So this, addition

Hendri Syam

Yes, We're this additional that. about after to this Mitratel supposed XX,XXX Yes. X,XXX. is addition of around have -- have around towers supposed to is

Niko Margaronis

Telkom X,XXX from And you from towers transferred Right. or recently Telkomsel? is it

Hendri Syam

tower of asset from transfer in-brand is in mentioned. Mitratel. included the call we not Telkom previously that we This what have We XX,XXX to

Niko Margaronis

Okay.

Okay. ratio X,XXX And towers? the tenancy these is of what

Hendri Syam

right I yes -- see situation the think we around the of tenancy for X.X. think ratio now, Mitratel I X.XX,

Ririek Adriansyah

X-X.

Hendri Syam

tower, now, the see in the Java. if outside distribution and half Java of tower, the X.XX. This X-X in sorry, you can rest of be the set

Of significant us increase potential quite course, give the think this a I tenancy. to

Operator

comes Your of the question from line Samuel Chen from AllianceBernstein. next

Samuel Chen

here. questions Just X

your first The dividend I thoughts Understanding want the be XG have you up, hear the might of a guidance policy, question on to investment first. that if is coming dividend any. on

Heri Supriadi

Okay.

we one. expected dividend to I make on the guys in investment market policy, on for what reason us the basically, see the you need this think the on that is

course, want the to Of meet we situation.

course, Of to now we not ready not year. the this, -- maybe is it are about next right talk

Ririek Adriansyah

early. Too

Heri Supriadi

to Too one. the to this want the our return give of early, about shareholders company, price still servicing. to But the yes, intention talk

Samuel Chen

venture is have. Okay. on question The next this guys MDI, fund, that you

will long-term understand guys are to investor most guys of the more well. for because your part a to SoftBank your plan exit? Or of Or Are you do your noticed of bit portfolio styles. I companies? investees wanted a you be verticals you more eventually -- as where this Just like is of a

Ririek Adriansyah

that, mentioned been basically, a by going to be basically I SoftBank. we're to wanted Pak just emphasize like Well, not Heri, it's but

not with all, course, are the member is actually synergy X is of very potential on What or with other also gain. One can mostly MDI and can seeking impressive. BXB we if TelkomGroup are capital seeking the what gain. be the looking within company SOE. we But is with SoftBank of And the sides. at is, be also or a -- with do capital similarly, is we're they

think are case-by-case the basis, accept to the be think I think it's a can be we the or for it -- I So X. the balance need actually, it we best longer than at point And that that. so to can

Samuel Chen

by a holding Maybe just quick sufficient is in don't the with a I is long-term beginning, XX%, that holding working with like But XX%, been understand in but follow-up. you relationship is a important. necessary grew you guys holding start-up know if a and to itself? -- Or for cement stake exit is you've them XX%, them relationship? are very -- company a that I XX% while the establishing the once is step

Ririek Adriansyah

said, more or us of the relationship quite like It's that good think continue strong it's have. can hit. I kind we what we is -- we BXB something promising believe important then synergy as and as of can that's is, and also the Well, I for we kind

that's the the investment I So think in way we do MDI.

Samuel Chen

Okay.

overall. So the has noticed my margin segment the out scale if played is very noticed last now the close whole segment, now segment, Telkom take to I I question fixed - the operating very nicely. margin that XX%, is the mid-XXs. consider I the EBITDA XX is on

IDCs, broadband, wholesale, that be and towers XXs, the are for, each higher. means is looking of between is -- for just we mostly not to and kind guidance if EBITDA low margin term us long some probably enterprise So over EBITDA able what of what the give kind margin probably Would on subsegment? you which generally margin

Heri Supriadi

Okay. Thank you for the question.

right quite we're I answer. But question think pleased margin also very and a now. think, tough I overall, to the with noncellular nice

If very have margin you we a see good IndiHome, here.

ask in that whether head the right think, of that that you we also from they that can provide one. have now course, connectivity we we we margin, basic increase the service have, buy I and the margin on, If then

we business So long-term, having customers think, short-term sticky margin between here. sustainability the of I to think, and also the need I by balance our more,

customers we this this. happy are think try we that have, margin business I with more very with the and enlarge by having to sticky. We more

margin have we with of can in we all area EBITDA enterprise, this the even around this that's hopefully, And I -- think XXs the then other, this, growing good. same the the about size of I with in margin margin, the if business have by opportunity very already think the running But if in well, moment, is better exists. on one.

So and so on. related this the we know built expertise is that we to have

this We to I also think, one. expect service by going increase more, having this on

are this, going So tower listed. be quite In network. long They in I margin the think, segment to comparable I going increase also run, have to have, course, they we the hope business, to the think, of a margin.

have we have, that I and addressed direction the those, good think, we I a that sustainability over think combination, think, I with time. margin do quite

Samuel Chen

Okay.

XX% be would basis, to the low, you right fair like to it it a Or reach XX%, once fixed basis, just scales X-year tower IPO? would business now, in the mid-XXs? similar maybe probably margin say follow-up. On have maybe more like be is EBITDA way So the a long-term around that to segment we the a

Heri Supriadi

is supposed I think it to improve, more but granularly.

think know going this the in competitor that I on we have one. to -- for I think we're IndiHome, more

the need one. market we well also, this depend as to So over on think, I

but improve, more it is going to think granular. I think I

Operator

questions, Andi. are like to the back As call no there to would go ahead. Please further Pak hand I

Andi Setiawan

today's for A.J., could participating those you, you, We apologize addressed everyone, be for in whose question Thank not yet. thank and call.

further Thank you us please If have any again. you, to don't everyone. contact questions, hesitate

Operator

for concludes Thank conference call. today's you. you Thank participation. your This

disconnect you all all. You now. may Thank

Perusahaan Perseroan (TLK) 1 Sep 212021 Q2 Earnings call transcript