Telkom Indonesia Persero Tbk PT ADR

TelkomGroup reported 2024 revenue of IDR 150 trillion, up 0.5% year on year. EBITDA was IDR 75 trillion, down 3.3% year on year; normalized EBITDA was IDR 76.2 trillion, down 1.8%, with a normalized EBITDA margin of 15.8%. Operating net income was IDR 24.1 trillion, down 4.1% after adjustments. CapEx totaled IDR 24.5 trillion, equal to 16.3% of revenue, and net debt to EBITDA was 0.6x. Telkomsel revenue grew 10.7% to IDR 113.3 trillion, with mobile data payload up 13.9% year on year; Telkomsel’s mobile revenue was 90.3% digital, or IDR 78.3 trillion. Wholesale and international revenue grew 6.4% to IDR 18 trillion, Mitratel revenue rose 7.2% to IDR 9.3 trillion, and Enterprise revenue increased 5.6% to IDR 20.6 trillion. For 2025, management guided TelkomGroup revenue to low-single-digit growth, EBITDA margin of 50% to 52%, and CapEx-to-sales of 17% to 19%.

Budi Wijaya framed 2024 as a difficult but manageable year for the sector, citing macro softness, volatility, and rising competition, but said TelkomGroup ended with steady revenue and a stable mobile base. He emphasized structural initiatives: completion of one-billing integration, a 57% convergence ratio, group procurement to lower CapEx, and the planned data center partnership and InfraCo commercialization. His tone was constructive and strategic, with repeated focus on discipline, market repair, and long-term value creation.

Heri Supriadi focused on the financial bridge between growth and profitability. He said revenue was IDR 150 trillion, EBITDA was IDR 75 trillion, normalized EBITDA was IDR 76.2 trillion, and CapEx was IDR 24.5 trillion, with net debt to EBITDA at 0.6x. He attributed EBITDA pressure partly to the early retirement program, higher personnel and marketing expenses, and explained that lower CapEx came from better technology choices, more efficient network topology, and group procurement; he also said the company expects to propose a higher dividend this year than last year.

Analysts pressed management on ARPU sustainability, CapEx intensity, dividend policy, sales and marketing spikes, O&M pressure, product simplification, and the 1.4 GHz spectrum auction. Management said mobile ARPU is under pressure from competition and weaker consumer spending, but sees opportunity from low data usage levels, FMC, and smarter segmentation; on CapEx, it said the lower ratio is sustainable because of procurement and technology efficiencies, though some 2024 projects such as data centers will roll into 2025. On product simplification, management said the benefits should start showing from Q2 onward, and on the spectrum question it stayed open to the opportunity but cautioned about cost structure and competitiveness.