Full Year 2018 and Q1 2019 Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan PT Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ludin Siward - Goldman Sachs - Analyst : First question is, on your cost items, it seems like the company has successfully managed cost really well this quarter. Could you give us more color on your cost saving measures so far? And should we expect this new level of cost as you knew base going forward? And second, for your -- second question, for your IndiHome business, what speed packages are bundled up, are the most popular now? Could you give us more breakdown on this? And how is it trending? I'm just trying to get more color on how much room for ARPU growth that you can do here with China up-trade customers.

Question: Ludin Siward - Goldman Sachs - Analyst : Just a quick follow-up on that. Could you also tell us what kind of speeds are the most popular for the IndiHome packages?

Question: Wei Shi Wu - BNP Paribas, Research Division - Analyst : Can you please talk a little bit about your assets in overseas wholesales Voice? And what kind of margins do you typically get for this business? And then my second question is relating to the operations and maintenance cost. As a percentage of revenues in first quarter, this has declined after fairly elevated levels in 2018. Can you talk to some of the key drivers for this?

Question: Wei Shi Wu - BNP Paribas, Research Division - Analyst : Our first question is about your assets in overseas wholesales Voice. There are some comment in the IN about this, so just want to get a little bit more detail as to your strategy there. And what kind of margins you can look to get for this business? Abdus Somad Arief - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - Director of Wholesale & International Service and Director Okay. This is Abdus, I'd like to answer your first question. Assets for this business, we have cables, submarine cables, as the CEO mentioned, SEA-US, SEA-ME-WE-5 and so on. But for wholesale Voice, we do not use that, so there is existing network we have. Talking about the margin, currently we shift our destination of hubbing service to premium destination, with margin between 5% to 10%.

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : Two questions from me, please. My first question is on the mobile. Is it possible to get a sense of how low the set of the legacy revenues can get at Telkomsel? And how much of the current decline is actually coming from bundling in 3 voice allowances into your data packages. Because if you look at your Internet packages, for example, they're still quite generous simply on the voice allowances there. So it seems there's a mention without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 07, 2019 / 8:00AM, TLKM.JK - Full Year 2018 and Q1 2019 Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan PT Earnings Call about improving mobile competition in the past 4 months. I mean should we expect you -- Telkomsel to begin like picking out some of these free on net allowances, just to slow down the legacy revenue decline in full year '19 or going forward? That's my first question. And then my second question, a quick one. Is there any update on full year '18 dividend policy?

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : Okay. But can we expect to -- legacy to let's say stop declining, let's say, after it forms like 20%, 30% of your total revenues? Or is there any particular ballpark there?

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : On the final question on the dividend?

Question: Ludin Siward - Goldman Sachs - Analyst : So just two quick questions. So given the better competitive landscape, do you think there's still some room to raise prices further? Or do you -- are you comfortable with your current level of mobile and data prices? And the second one, so Telkomsel's ARPU seems to decline in first quarter '19. So I notice there is usually some seasonality here, but are there any reasons for the decline in this quarter? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 07, 2019 / 8:00AM, TLKM.JK - Full Year 2018 and Q1 2019 Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan PT Earnings Call

Question: Choong Chen Foong - CIMB Research - Analyst : Two questions for me. Firstly, question for the fixed line business side. Regarding your investment in data centers -- disaster recovery centers and all that, could you sort of give us some idea as to the amount of CapEx that's going to be spent there? And also, in terms of timeline, when would these facilities be completed? And also, regarding revenue contributions from these investments, when should we start to expect that it would generate returns on them? And also, if you can also guide us on the fixed enterprise revenue growth for this year, that'll be useful. That's the first question. Second question regarding your fintech venture, LinkAja, and also your comments earlier about the entry of significant shareholders later this year. Could you just sort of give us some color as to how this venture will benefit Telkom in terms of earnings and also in terms of shareholders' value creation? Are we looking at maybe, perhaps, putting this up or lifting sometime soon? Yes, those are my two questions.

Question: Choong Chen Foong - CIMB Research - Analyst : Maybe can I have a follow-up question maybe for mobile segment, maybe for Alistair. Just wanted to ask for your comments regarding Telkomsel's pricing levels versus peers at this point in time. As you mentioned, your Data revenue is actually growing faster than your peers, and you seem to be quite happy with that. So I just wanted to understand whether if that case continues, you would be happy with the situation, even if the overall mobile revenue, service revenue would be slower because of the legacy decline. Would that be the thinking going forward?