Business Context and Reporting Period
This Form 6-K filing, dated April 5, 2023, presents the 2022 Annual Report for Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom). As Indonesia's largest state-owned telecommunications company, Telkom operates across mobile, fixed broadband, enterprise, and wholesale segments. The reporting period covers the fiscal year ended December 31, 2022.
Key Financial Metrics (Year Ended Dec 31, 2022)
| Metric | 2022 Value (Rp Billion) | 2021 Value (Rp Billion) | Change (%) |
|---|---|---|---|
| Total Revenues | 147,306 | 143,210 | +2.9% |
| EBITDA | 78,992 | 75,723 | +4.3% |
| Operating Profit | 39,581 | 47,563 | -16.8% |
| Net Profit (Consolidated) | 27,680 | 33,948 | -18.5% |
| Net Profit (Attributable to Parent) | 20,753 | 24,760 | -16.2% |
| Total Assets | 275,192 | 277,184 | -0.7% |
| Total Liabilities | 125,930 | 131,785 | -4.4% |
| Capital Expenditure (CAPEX) | 34,156 | 30,341 | +12.6% |
Key Ratios: Debt-to-Equity Ratio was 0.42x (down from 0.48x); Debt-to-EBITDA was 0.80x; EBITDA Margin was 53.6%.
Material Changes vs. Prior Period
- Revenue Growth: Driven by a 6.4% increase in IndiHome (fixed broadband) revenue and a 5.1% increase in data/internet services. Mobile revenue grew 1.7% despite a 10.9% decline in total cellular subscribers, as the company focused on quality over quantity.
- Profitability Decline: Net profit attributable to the parent company fell 16.2%. Management attributes this primarily to an unrealized loss of Rp6,438 billion on changes in the fair value of investments (specifically related to GoTo). Excluding this item, operational net profit grew 7.7%.
- Segment Performance: The Consumer segment (IndiHome) saw a 28.6% increase in segment results. The Enterprise segment turned profitable (Rp831 billion) after losses in 2021. The Mobile segment results declined 24.1% due to rising expenses and the shift from legacy voice/SMS to data.
- Balance Sheet: Total liabilities decreased 4.4% due to repayments of long-term borrowings and lease liabilities. Cash and cash equivalents decreased 16.6% to Rp31,947 billion.
Guidance, Outlook, and Risks
- 2023 Outlook: Management expects revenue to grow in the low to mid-single digit range. CAPEX is projected to be 25%-30% of revenue, focusing on digital infrastructure. Dividend payout ratio is expected to range between 60%-90%.
- Strategic Focus: The company is executing "Five Bold Moves" to unlock value: Fixed-Mobile Convergence (FMC), InfraCo (infrastructure consolidation), Data Center Co, B2B Digital IT Service Co, and DigiCo (digital services).
- Risks:
- Regulatory: New Personal Data Protection (PDP) Law and Job Creation Law regulations regarding infrastructure sharing.
- Market: Intense competition in fixed broadband and mobile data; transition from legacy voice/SMS to OTT services.
- Macroeconomic: Inflation, exchange rate fluctuations (Rupiah vs. USD), and global economic slowdown.
Important Facts for Investor Verification
- Investment Loss Impact: Verify the specific valuation methodology and future outlook for the GoTo investment, which caused a significant unrealized loss impacting 2022 net income.
- Subscriber Quality vs. Quantity: Confirm the long-term revenue impact of the deliberate reduction in cellular subscribers (down 10.9%) versus the growth in mobile data traffic (up 18.7%).
- CAPEX Efficiency: Monitor the return on the increased CAPEX (up 12.6%) allocated to 5G, data centers, and submarine cables.
- Dividend Policy: Verify the final dividend payout ratio for 2022 performance at the upcoming Annual General Meeting of Shareholders (AGMS).
- Regulatory Compliance: Assess the financial impact of the new Personal Data Protection Law and infrastructure sharing mandates under the Job Creation Law.