T H E F I R S T Q U A R T E R 2 0 1 4 R E S U L T S U N A U D I T E D
TICKERS: IDX :
TLKM NYSE :
TLK LSE :
TKIA ISSUED SHARES:
100,799,996,400 shares
SHAREHOLDER COMPOSITION:
Govt. of Indonesia : 53.1
Public : 46.9
Excl. Treasury stock : 3,699,142,800 shares.
CONVERSION RATES US 1.00:
March 31, 2014 = Rp11,360.0
March 31, 2013 = Rp9,717.5
Investor Relations PT Telekomunikasi Indonesia Tbk
Graha Merah Putih, 5th Floor Jl. Gatot Subroto Kav. 52, Jakarta 12710
Phone : 62 21 5215109
Fax : 62 21 5220500
Email : investortelkom.co.id
Website : www.telkom.co.id DISCLAIMER
This document contains financial conditions and result of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning of applicable law.
Forward looking statements, by their nature, involve risk and uncertainty that could cause actual results and development to differ materially from those expressed or implied in these statements. Telkom Indonesia does not guarantee that any action, which may
have been taken in reliance on this document, will bring specific results as expected.
Highlight
Consolidated revenue for 1Q14 grew by 8.7 YoY to Rp21.3 trillion and our celullar subsidiary recorded a 9.8 Year on Year YoY revenue growth to Rp
15,289 trillion.
Data, Internet IT Services revenue become the biggest contributor of total
group revenue with 39.5 contribution and 14.3 growth YoY.
Broadband users that consist of fixed broadband, Flash and Blackberry, grew by 65.3 YoY, meanwhile cellular subscribers increased by 10.0 YoY to
132.7 million.
Telkomsel kept enhancing its network with more than 1,000 new BTSs per month deployed during 1Q14 where 79.4 of which were 3G Node B.
Financial Highlights
Key Indicators Rp. Bn
YoY QoQ
1Q14 1Q13
Growth 1Q14
4Q13 3Q13
2Q13 Growth
Revenues 21,250 19,547
8.7 21,250 21,468 21,339 20,613
1.0 Expenses
14,270 12,797 11.5
14,270 14,924 13,883 13,517 4.4
Operating Profit 6,980
6,750 3.4
6,980 6,544
7,456 7,096
6.7 EBITDA
10,991 10,049 9.4
10,991 9,498 11,803 10,426
15.7 EBITDA Margin
51.7 51.4
0.3 51.7
44.2 55.3
50.6 7.5
Net Income 3,649
3,477 4.9
3,649 3,148
3,932 3,648
15.9
Operational Highlights
Subscribers 000 YoY
QoQ 1Q14
1Q13 Growth
1Q14 4Q13
3Q13 2Q13
Growth Broadband
Fixed BroadbandSpeedy 3,120
2,652 17.6
3,120 3,013
2,894 2,781
3.6 Mobile BroadbandFlash
17,315 8,767
97.5 17,315 17,271 12,665 11,113
0.3 BlackBerry
7,631 5,557
37.3 7,631
7,556 7,021
6,332 1.0
Total 28,066
16,976 65.3
28,066 27,840 22,580 20,226 0.8
Cellular
Postpaid 2,525
2,219 13.8
2,525 2,489
2,412 2,326
1.4 Prepaid
130,126 118,391 9.9
130,126 129,023 125,492 122,765 0.9
Total 132,651 120,610
10.0 132,651 131,513 127,904 125,091
0.9
Fixed Line
LIS Wireline 9,442
9,044 4.4
9,442 9,351
9,245 9,151
1.0 LIS Wireless
6,830 18,384
62.8 6,830
6,766 11,551 15,550 0.9
Total 16,272 27,428
40.7 16,272 16,117 20,796 24,701
1.0
FINANCIAL PERFORMANCE Revenue
in Rp. Bn
OPERATIONAL PERFORMANCE Subscribers
million
2
THE FIRST QUARTER 2014 UNAUDITED
PT TELEKOMUNIKASI INDONESIA, Tbk. THE FIRST QUARTER 2014 UNAUDITED
The following analysis and discussion is based on our Indonesian GAAP financial statements for the three months ended March 31, 2013 and 2014. The reports have been submitted to Indonesia Financial Services
Authority OJK.
FINANCIAL RESULTS
Revenues
Key Indicators Rp.Bn
YoY QoQ
1Q14 1Q13
Growth 1Q14
4Q13 3Q13
2Q13 Growth
Cellular Voice 8,039
7,578 6.1
8,039 8,473
8,267 7,820
5.1 Fixed Line Voice
2,309 2,494
7.4 2,309
2,306 2,382
2,519 0.1
Data, Internet IT Service Incl.SMS 8,399
7,347 14.3
8,399 8,376
8,294 7,692
0.3 Interconnection
1,218 1,145
6.4 1,218
1,210 1,278
1,210 0.7
Network 371
332 11.7
371 342
256 323
8.5 Other Telco Services
915 651
40.6 915
761 862
1,049 20.2
Total 21,250
19,547 8.7
21,250 21,468
21,339 20,613
1.0
Total revenue for 1Q14 is Rp21.3 trillion, an increase of 8.7 YoY, with Data, Internet IT Services being the largest contributor replacing Cellular Voice revenue which now being the second largest contributor.
Total revenue decreased by 1.0 Quarter on Quarter QoQ with the details as follows:
Cellular voice revenues
decreased by 5.1 QoQ due to the decrease in traffic, whereas high seasonality in last quarter was because Christmas and New Year holiday. On yearly basis it grew by
6.1 as a result of higher usage due to the increase in number of subcribers.
Fixed line voice revenues,
which consist of Fixed Wireline and Fixed Wireless Voice revenues, increased by 0.1 QoQ while for the YoY it decreased by 7.4.
o
Fixed wireline revenue went up by 1.8 QoQ as a result of the increase in our new fixed wireline
subscribers; while for the YoY it went down by 6.4 due to the decrease in our subscribers’ local usage.
o Fixed wireless revenue
went down for both QoQ and YoY, by 13.0 and by 15.3 respectively; both were caused by the decrease in prepaid subscribers’ local usage.
Data, Internet IT Services revenues
slightly increased by 0.3 QoQ and also increased by 14.3 YoY as a result of the increase in our corporate internet service and higher usage of cellular data traffic.
Interconnection revenues
increased slightly by 0.7 QoQ and went up by 6.4 YoY as a result of an increase in international incoming call to both fixed line and cellular subscribers
.
Network revenues
increased for both QoQ and YoY, 8.5 and 11.7 respectively, the increase were resulted from the increase of our Transponder capacities.
Other telecommunication services revenues
increased by 20.2 QoQ and by 40.6 YoY, both of which resulted from the ascending performance of our Corporate Solution business.
3
THE FIRST QUARTER 2014 UNAUDITED
Expenses
Key Indicators Rp. Bn
YoY QoQ
1Q14 1Q13
Growth 1Q14
4Q13 3Q13
2Q13 Growth
Operation, Maintenance Telecommunication Services
5,106 4,698
8.7 5,106
5,217 4,383
5,034 2.1
Personnel 2,242
2,331 3.8
2,242 2,766
2,362 2,274
18.9 Interconnection
1,294 1,175
10.1 1,294
1,291 1,265
1,196 0.2
Marketing 697
651 7.1
697 939
766 688
25.8 General Administrative
920 643
43.1 920
1,757 760
995 47.6
Depreciation Amortization 3,948
3,462 14.0
3,948 4,708
4,132 3,478
16.1 GainLoss on Forex – net Others – net
63 163
138.7 63
1,754 215
148 103.6
Total 14,270
12,797 11.5
14,270 14,924
13,883 13,517
4.4
Compared to quarter results, total expenses decreased by 4.4; while for the yearly basis, it was increased by 11.5 respectively, with the following details:
Operation Maintenance “OM” expenses
went down by 2.1 QoQ due to lower business volume as compared to busy 4Q13. Whereas for the YoY the expenses increased by 8.7 which was
in line with the accelerated network deployment.
Personnel expenses
declined by 18.9 QoQ and by 3.8 YoY. For the QoQ, the decrease occurred because of higher incentive distributed in 4Q13 to the employees. While for the YoY, the decline was
due to the decrease in net periodic pension cost.
Interconnection expenses
grew slightly by 0.2 QoQ, and also went up by 10.1 YoY, both were due to the increase traffic with other operators.
Marketing expenses
went down by 25.8 QoQ mostly due to the lower advertising and promotion activities compared to the last quarter peak traffic; whereas for the YoY, it went up by 7.1 due to the
increase in sponsorship and customer loyalty programs.
General Administrative expenses
went down by 47.6 QoQ mostly due to one-off provision for doubtful account on past quarter. However the expenses went up by 43.1 YoY due to the increase in
provision for doubtful account as we adjusted accounting treatment on provision for doubtful account starting 4Q13.
Depreciation Amortization expenses
decreased by 16.1 QoQ as we applied accelerated depreciation in the previous quarter for our fixed wireless business portfolio. Whereas the expense
increased by 14.0 YoY due to accelerated network deployment in our cellular subsidiary.
EBITDA, EBITDA Margin, and Net Income
In the first quarter of 2014, EBITDA increased by 9.4 YoY and 15.7 QoQ to Rp11.0 trillion. While EBITDA margin increased for both YoY and QoQ, by 0.3 and 7.5 respectively.
Net Income for 1Q14 increased by 4.9 YoY to Rp3.6 trillion, while it increased by 15.9 QoQ. The basis to calculate the EBITDA is the expenses without Depreciation and Amortization expenses, Forex
Exchange Gain or Loss, and Others-Net.
4
THE FIRST QUARTER 2014 UNAUDITED
Financial Position
Key Indicators Rp.Bn
YoY QoQ
1Q14 1Q13
Growth 1Q14
4Q13 3Q13
2Q13 Growth
Assets 130,472 116,104
12.4 130,472
127,951 120,795 111,472
2.0 Liabilities
47,945 44,137
8.6 47,945
50,527 48,055
46,723 5.1
Non-controlling Interests 18,418
16,935 8.8
18,418 16,882
15,385 13,783
9.1 Equity attributable to owners of the
company 64,109
55,032 16.5
64,109 60,542
57,355 50,966
5.9
Increase in assets by 2.0 QoQ due to the increase in short-term deposit.
Decrease in Liabilities by 5.1 QoQ as the decrease of account payable to third-parties.
Increase in non-controlling interest of 9.1 QoQ was due to the increase in Telkomsel’s Net Income.
Increase in Equity of 5.9 QoQ was due to the increase in our unappropriated Retained Earnings, resulted from the increase in Net Income
Cash Flows
Key Indicators Rp. Bn YoY
1Q14 1Q13
Growth
Cash Flow provided by Operating Activities 7,751
7,685 0.9
Cash Flow used in received from Investing Activities 890
81 1,198.8
Cash Flow used in Financing Activities 530
801 33.8
Net Increase in Cash Cash Equivalent 6,331
6,965 9.1
Effect of Foreign Rate Changes 327
29 1,227.6
Cash Cash Equivalents at Beginning of Periods 14,696
13,118 12.0
Cash Cash Equivalents at End of Periods 20,700
20,112 2.9
Net cash provided by operating activities slightly increased by 0.9 YoY as the increase in our cash received from customers and decrease of payments to employees, compensated by increase of
payments for expenses.
Net cash used in investing activities increased by 1198.8 YoY due to increase in asset acquisition.
Net cash used in financing activities decreased by 33.8 YoY as the decrease in repayment of our two- step loans and bank loans.
Debts
Currencies Rp.Bn
YoY QoQ
Portion 1Q14
1Q13 Growth
1Q14 4Q13
Growth 1Q14
4Q13 1Q13
IDRRupiah 12,040
13,293 9.4
12,040 12,626
4.6 81.4
82.6 82.2
USDUS Dollar 1,811
1,927 6.0
1,811 1,682
7.7 12.2
11.0 11.9
JPYJapanese Yen 940
951 1.2
940 979
4.0 6.4
6.4 5.9
Total 14,791
16,171 8.5
14,791 15,287
3.2 100.0
