Full Year 2020 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 : Can you hear me?

Question: Choong Chen Foong - CIMB Research - Analyst : A couple of questions from me. Firstly, I wanted to ask about the mobile revenue for (inaudible)

Question: Prem Jearajasingam - Macquarie Research - Analyst : A couple of questions from me, please. First of all, looking at the competitive environment in the market in recent months, how would you say things are going? Is -- are you increasingly worried about the nature -- the structural changes in the market, a more aggressive market leader, et cetera? And what do you think the medium-term risks are from this? Number two, I'm not sure if you can answer this, but in the event that this REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 19, 2021 / 8:00AM, ISAT.JK - Full Year 2020 Indosat Tbk PT Earnings Call merger does take place, how long do you think it will take before the merged entity will be able to retake market share, which is potentially lost during that merger process? And what are your biggest concerns from any merger that takes place now?

Question: Prem Jearajasingam - Macquarie Research - Analyst : Sure. Could I just follow up? Would you be able to share with us what percentage of your network, especially your LTE network, is currently fiberized? And I'm not talking about 1 hop to fiber. I'm talking about specifically what percentage of your BTSs are actually fiberized?

Question: Choong Chen Foong - CIMB Research - Analyst : Can you hear me? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 19, 2021 / 8:00AM, ISAT.JK - Full Year 2020 Indosat Tbk PT Earnings Call

Question: Choong Chen Foong - CIMB Research - Analyst : Okay. A couple of questions from me. Firstly, I just wanted to go back to the question on competition and how your revenue actually grew pretty strongly, up 3% Q-on-Q. I noted what you said, Vikram, regarding your strategy with trying to focus on customer experience and all that. But I just wanted to understand on the -- in the last couple of months, as you face more competition, right, was there pressure to lower your prices? That's one. And in terms of the revenue growth, are some of the -- are these competition pressure that you're seeing in existing areas being offset maybe by revenues that you're getting from new geographies or maybe gaining from nontraditional segments? Is that one of the reasons why you're actually able to grow your revenues? That's my question one. Number two, with regards to the comments about the guidance for EBITDA margin of low 40s for this year, I note that you mentioned about being conservative and all that. I wanted to ask for a bit more color as to the absolute cost. Do you think that the absolute cost can stay relatively stable going into 2021? Those are my 2 questions.

Question: Choong Chen Foong - CIMB Research - Analyst : Pak Vikram, maybe I can just follow up on that as well quickly on the revenue for mobile. Was there any contribution -- positive contribution to the revenue growth for mobile from the government education quota program in the fourth quarter?

Question: Choong Chen Foong - CIMB Research - Analyst : Understood. And Pak Eyas, on the question on the EBITDA margin and the absolute cost for this year?

Question: Choong Chen Foong - CIMB Research - Analyst : Yes. Understood.

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : Can you guys hear me?

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : Yes, okay. Just 2 housekeeping questions. My first question, I missed it earlier, but how big was the handset revenues taken out in full year '20? And is it fair to assume that this handset revenue accounting adjustments should also correspond with the reduction in your cost of services due in 2020? That's number one. And secondly, on leverage, I noticed that over 80% of Indosat interest-bearing debts is off fixed rates and quite premium into this standard. Is there any avenue to refinance with fixed rates with cheaper and perhaps variable rates, especially since interest rates will remain relatively low for some time? Any thoughts would be helpful.

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : Yes. My second question is on the cost of debt. I noticed that over 80% of your interest-bearing debt is off fixed rates, right, and quite premium to these standards, right? They cost 7% to 10%, if I recall. So is there an avenue to refinance some of these fixed rates with cheaper and perhaps variable rates, especially since interest rates could remain relatively low for some time?