PT Telkom Indonesia (Persero) Tbk (Telkom) has reported a positive financial performance for the first half of 2024, with consolidated revenue increasing by 2.5% year-over-year to IDR 75.3 trillion. This growth was largely driven by the Data, Internet & IT Services segment, which saw revenue rise to IDR 45.5 trillion, reflecting a 9.2% increase. The Company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached IDR 37.9 trillion, achieving an EBITDA margin of 50.3%. Additionally, Telkom reported a net operating profit of IDR 13.0 trillion, up 4.2% YoY, with a margin of 17.3%.
In the first semester of 2024, Telkom launched an Early Retirement program, which temporarily increased personal costs but is expected to enhance efficiency and productivity by fostering a leaner organization and boosting digital talent.
Ririek Adriansyah, Telkom’s President Director, commented, “In the first half of 2024, TelkomGroup has remained focused on executing the 5 Bold Moves transformation strategy, alongside subsidiary corporate actions and the Early Retirement program to drive efficiency and productivity. We are pleased to see positive financial results from Telkomsel’s FMC and NeutraDC’s Data Center business, demonstrating our capability to accelerate transformation and deliver optimal outcomes for stakeholders.”
In the Mobile segment, Telkomsel, a Telkom subsidiary, reported revenue of IDR 57.17 trillion, supported by a 4.9% YoY increase in Digital Business revenue to IDR 39.54 trillion. Telkomsel maintains its market leadership with 159.9 million mobile customers (up 4.3% YoY) and 10.6 million IndiHome customers (up 10.9% YoY). To enhance connectivity and service quality, Telkomsel now operates 265,904 Base Transceiver Stations (BTS), including 216,378 4G BTS and 716 5G BTS. Data traffic increased by 11.7% YoY to 9,753,659 TB.
In June 2024, Telkomsel completed a sales and leaseback agreement with PT Dhost Telekomunikasi Nusantara, involving 850 indoor infrastructure sites and 689 indoor infrastructure leasebacks, totaling IDR 865 billion. This aligns with the company’s transformation strategy and industry trends.
The Enterprise segment achieved revenue of IDR 10.2 trillion, a 9.4% YoY growth, primarily driven by B2B Digital IT Services, such as High-Speed Internet and e-Payment. Telkom continues to enhance its Cloud, Digital IT Services, and Cyber Security capabilities through strategic global partnerships. The Wholesale and International segment recorded revenue of IDR 9.2 trillion, up 13.1% YoY, driven by growth in international wholesale voice services and digital infrastructure.
Mitratel, a telecommunications tower business, reported revenue of IDR 4.5 trillion, growing 7.8% YoY, with increased tower rental income. EBITDA and net profit rose by 10.2% and 4.1% YoY, respectively. The EBITDA margin improved by 1.9 percentage points to 83.1%, while the net income margin reached 23.9%. Mitratel added 567 new towers, bringing its total to 38,581, with a tenancy ratio rising from 1.49x in 2023 to 1.52x by June 2024.
Through its subsidiary NeutraDC, TelkomGroup’s Data Center and Cloud business achieved revenue of IDR 1 trillion, up 22.0% YoY. NeutraDC is preparing to add 18 MW of data center capacity for the Cikarang Hyperscale Data Center, expected to be operational by the end of 2024, and is constructing the Batam Hyperscale Data Center with a total capacity of 18 MW, projected to start operations in 2025. Telkom is also preparing for a data center business unlock through due diligence and potential partnerships, aiming to strengthen its global competitiveness in the data center ecosystem.
The InfraCo initiative, PT Telkom Infrastruktur Indonesia, established at the end of 2023, focuses on infrastructure and network management. Operational preparations are underway, with the company set to commence operations on August 1, 2024, managing Telkom’s fiber assets. Asset monetization and transfer to PT Telkom Infrastruktur Indonesia are planned for 2025, aiming to enhance innovation and value creation while supporting national connectivity and digital adoption.
By the end of June 2024, Telkom’s total capital expenditure reached IDR 11.7 trillion, representing 15.5% of total revenue. This expenditure is directed towards improving telecommunications network infrastructure, including 4G and 5G BTS, submarine cable systems, and Hyperscale Data Centers in Cikarang and Batam.
