Full Year 2019 Indosat Tbk PT Earnings Call Transcript

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

Question: Choong Chen Foong - CIMB Research - Analyst : Three questions from me. Firstly, question on competition again. Could you give us your view as to how the competition in the market is trending? On the ground, do you see aggression from any players in any particular segment, especially from the smallest player and as well as maybe the market leader. Have you seen them being aggressive in perhaps the lower end [sachet] products? Secondly, I wanted to ask on the CapEx guidance for this year, which you have now guided for it to be lower. Given that your balance sheet has strengthened, especially after the tower sale, why should we be dropping the CapEx now? Why don't we keep the CapEx to expand more actively into extra this year? That's my second question. And third question, I wanted to ask on the staff layoffs. Do you have an estimated one-off costs that you'll be incurring as well as the annual savings on that exercise? Yes, those are my 3 questions.

Question: Choong Chen Foong - CIMB Research - Analyst : Okay. And can I just follow up on that? In terms of your ex Java population coverage at the end of last year, what was it? And where do you think it will be at the end of this year? And also in terms of the staff layoff, what would be the cost savings? If you can sort of provide some color there.

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : Congrats again on your strong profit turnaround in full year '19. My first question is related to your tower sale. So if you look at Note 21 of your financial statement, there is a reduction from the latest tower sale proceeds of about 700 million for provision for claim warranty. Would you mind sharing with us, I mean, or give us some color what this provision is for? And what is the condition for this provision to be reversed in the future? My second question is on network utilization. So after the major CapEx spending in the past 2 years, you've really seen very meaningful improvements in your downward speed. But would you mind giving some color on -- in the sub network utilization rate today?

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : Yes. So just basically understanding just how much capacity that you've built, just give some color on how well your network is currently being utilized, especially after the ramp-up in your 4G LTE capacity?

Question: Ranjan Sharma - JP Morgan Chase & Co, Research Division - Analyst : Just a couple of questions from my side. Firstly, just looking at your guidance, so if I assume like 5% growth for revenues in 2020, 38% growth -- 38% EBITDA margin, I still come to a PBT of negative IDR 2.5 trillion, plus another year of free cash flow negative. From that, like when should we expect Indosat to turn profitable? And when should we think of free cash flow turning positive, so you can start paying down debt? The second question is on the regulatory side. I understand that the government is looking to tighten the SIM card registration regulation, maybe bringing KYC documentation as well for raising SIM cards. Is -- any update on that side?

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : Congrats for the strong fourth quarter. I wanted to ask a bit more color on the retirement plan. So basically, is this part of a bigger plan? Or is it one-off? That's the first question. And I heard that you will be maintaining about the same level of CapEx for 2020. Would you -- perhaps in order to finance this CapEx and perhaps in an effort maybe to deleverage going forward, would you be willing to consider -- would you be considering again another tower sales?

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : If I may, can I have one more question? 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. FEBRUARY 24, 2020 / 8:00AM, ISAT.JK - Full Year 2019 Indosat Tbk PT Earnings Call

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : Going back to the competition and on the data plans, we see some -- yes, the incumbent operator is pushing strongly the new package. Would you be reacting to that? Or are you going to be following the same recipe of simplifying your data plans? And a side question on this, what is your exposure currently on your -- on the sole validity data plan? How much revenue you derive from the sole validity plans?

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : What is currently your exposure to sort of validity packs data plans?

Question: Choong Chen Foong - CIMB Research - Analyst : Just 2 follow-up questions from me. Firstly, Vikram, just to clarify on the cessation of selling the unlimited plans, right, to even existing customers from 1st of February. I just want to clarify because I still see the unlimited plans being advertised on your website. So is that just because the website has not been updated? So that's my first question. Second question, on the tower sale, the net gain on disposal, is that subjected to tax? And if so, at what rate? Yes, those are my 2 questions.