Business Context and Reporting Period
Company: Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom Indonesia)
Filing Type: Form 6-K (Unaudited Consolidated Financial Statements)
Reporting Period: Nine months ended September 30, 2022
Comparison Period: Nine months ended September 30, 2021
Currency: Indonesian Rupiah (IDR) in billions, unless otherwise stated.
Telkom Indonesia is a state-owned public limited liability company providing telecommunications networks and services. The filing includes consolidated financial statements for the Company and its subsidiaries, including major entities such as Telkomsel (65% owned) and Mitratel (72% owned).
Key Financial Metrics
| Metric | 9 Months 2022 | 9 Months 2021 |
|---|---|---|
| Total Revenues | 108,874 | 106,043 |
| Operating Profit | 31,573 | 36,301 |
| Profit Before Tax | 29,197 | 33,260 |
| Net Profit (Consolidated) | 22,816 | 25,663 |
| Net Profit (Parent Company) | 16,581 | 18,872 |
| Net Cash from Operating Activities | 50,866 | 50,972 |
| Net Cash Used in Investing Activities | (26,761) | (26,792) |
| Net Cash Used in Financing Activities | (31,035) | (27,342) |
| Cash and Cash Equivalents (End of Period) | 31,657 | 17,491 |
| Total Assets | 269,963 | 277,184 |
| Total Liabilities | 124,564 | 131,785 |
| Total Equity | 145,399 | 145,399 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 2.7% to IDR 108.9 trillion, driven primarily by growth in the Mobile segment (Cellular data and internet revenue rose to IDR 50.8 trillion) and Consumer segment (Indihome revenue rose to IDR 20.9 trillion).
- Profit Decline: Operating profit decreased by 13.0% to IDR 31.6 trillion. Net profit attributable to the parent company declined by 12.1% to IDR 16.6 trillion.
- Investment Valuation Loss: A significant factor in the profit decline was an unrealized loss on changes in fair value of investments totaling IDR 3.1 trillion. This was primarily due to the valuation of Telkomsel's investment in GoTo (PT GoTo Gojek Tokopedia), which recorded an unrealized loss of IDR 3.1 trillion.
- Depreciation Increase: Depreciation and amortization expenses increased by 12.8% to IDR 25.0 trillion, partly due to the accelerated depreciation of Multi-Service Access Node (MSAN) assets.
- Dividends: The Company paid cash dividends of IDR 14.9 billion to stockholders and IDR 7.5 billion to non-controlling interests during the period.
Guidance, Outlook, Risks, and Contingencies
- Investment Risk: The Group holds significant long-term investments in financial instruments (IDR 11.7 trillion), including equity in GoTo. The fair value of these assets is subject to market volatility, as evidenced by the substantial unrealized loss recognized in the current period.
- Tax Disputes: The Company and its subsidiary Telkomsel are involved in ongoing tax assessments and judicial reviews regarding fiscal years 2012, 2014, 2015, and 2018. While some disputes have been resolved with refunds received, others remain pending at the Supreme Court level.
- Debt Covenants: The Group is required to maintain specific financial ratios (e.g., Debt-to-Equity, Debt Service Coverage) under various loan agreements. As of September 30, 2022, the Group complied with most covenants, though waivers were previously obtained for certain subsidiaries (Telkom Infra, Sigma) regarding non-fulfillment of ratios in late 2021.
- Capital Expenditures: Committed capital expenditures as of September 30, 2022, amounted to IDR 11.9 trillion, reflecting continued investment in network infrastructure (e.g., submarine cables, IP backbone, and radio networks).
- Foreign Exchange: The Group has a net foreign currency exposure primarily in U.S. Dollars and Japanese Yen. A 1% strengthening of the USD against the Rupiah would decrease equity and profit by approximately IDR 145 billion.
Key Facts for Investor Verification
- GoTo Investment Impact: Verify the current market valuation of the GoTo investment and the potential for further unrealized losses or gains, as this significantly impacts reported net income.
- Dividend Policy: Confirm the approved dividend payout for the 2022 fiscal year and the sustainability of the payout ratio given the decline in net profit.
- Tax Litigation Status: Monitor the outcome of pending Supreme Court judicial reviews regarding tax assessments for Telkomsel and the parent company, which could result in material cash outflows or refunds.
- Debt Maturity Profile: Review the maturity schedule of long-term borrowings (IDR 30.1 trillion) and lease liabilities (IDR 17.0 trillion) to assess refinancing risks and liquidity requirements.
- Non-Controlling Interests: Note that a significant portion of net profit (IDR 6.2 trillion) is attributable to non-controlling interests, primarily from Telkomsel and Mitratel.