The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: Hi. It's Ranjan from JPMorgan. A couple of questions from my side. Firstly, there has been a change of Board members. How does that -- how should
we think about the change in strategy of Telkom as a group? And how does your capital allocation change with that strategy? So if you can share
some details on that, that would be helpful.
The second question is, I see you have seen a big drop in customers in the first quarter. If you can explain what's happened. I see in the info memo
that you talk about a reinforcement in prepaid SIM registration policy. Can you share some details on that as well?
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: Sorry, can I have a quick follow-up? In terms of prepaid registration, has anything changed recently, which leads to the customer drop?
Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst
: This is Kresna from Mandiri. Firstly, congratulations to everyone on the appointment of the new directors at Telkom Group -- Telkomsel level.
I have 2 questions. Firstly, on leverage. And secondly on taxes. My first question on leverage. How should we see the leverage trend out at Telkomsel
and non-Telkomsel level in the next 1 to 2 years?
Particularly, net debt to EBITDA at non-Telkomsel level is already at 2x if we exclude the finance leases. Can I get some color on the level of leverage
where management would target or be comfortable with over the next 1 to 2 years? That's my first question.
My second question is on taxes. The effective tax rate in the first quarter '20 was at 24% at group level. Can I just please check if the effective tax
rate should converge to the statutory rate of 22% for full year '20 or higher? Because if you look at the past effective tax rates, it has always been
quite higher than the statutory rate. So can you just give some color on how effective tax rate should trend going forward?
Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst
: About the leverage on non-Telkomsel level, would you mind giving some color on that part?
Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst
: Two questions basically on issues that you mentioned already. Just to clarify, on the Enterprise segment, in the next couple of quarters, what do
you expect to be the trend in your results? That's -- yes, that's one. Maybe in addition, do you see increased competition, I mean in terms of data
center services coming from foreign players?
And on the second question, the second question would be on IndiHome. Can you give us a picture on how do you see if the ARPU will be trending
going forward?
Unidentified Company Representative
Thank you, Par-Niko, for the question. First, on the Enterprise segment, we believe in terms of, I think, the margin to be better (inaudible) as we're
becoming more selective and we mentioned require revenue more, I think, healthy segment. So however, we also do have challenge in this segment
as the COVID impact some of the -- I think our customers, for example, as you know, in the hospitality industry and relative almost every, let's say,
are impacted by this one. I think that's maybe the pressure coming from. But overall, in terms of the selection of the, I think, quarter for year in this
segment, we believe we on right track.
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JULY 03, 2020 / 9:30AM, TLKM.JK - Q1 2020 Telekomunikasi Indonesia (Persero) Tbk PT Earnings Call
And then on the data center services, we, I think, currently have as many data centers with utilization of 75%. We are also in the process of adding
some the presenter as interns more use and also for external services. We are also quite often to example to have any kind of, I think, partnership
with others, but especially whenever we come to maximize the benefit of data center, there's some I think we provide the service above of the
data center itself.
And then IndiHome, going forward, I think we can see the potential of ARPU improvement coming from the add-on, I think add-on services that
we provide, either in the term of the packages that we provide, for example, (inaudible) and then Mobi and so on, or before, I think, increased
quality or speed of the services they need. That can create additional. But in the same time, we also see more, I think, demand coming from the
world I think and demand that we also need to entertain and expect in the long run, going to provide so additional ARPU increment of this one.
So what we believe in this time, the level that we have is quite healthy level.
Question: Prem Jearajasingam - Macquarie Research - Analyst
: Two questions from me, largely linked around COVID. Could I check if the restriction, the quarantines, et cetera, has changed your user profiles in
any significant way? So first and foremost, do you think that this recent quarantine has potentially accelerated the decline or the shift from voice
to data-related services, right? So you -- some color around how significant a drop in your voice and legacy revenues you expect for this year?
And secondly, have you seen any significant shift from a market share perspective because as people move back to their home villages, et cetera,
they learned that your network was far superior to that of your competition and therefore you may have permanently gained some subscribers.
Do you think that's also played out in the second quarter?
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affiliated companies.
JULY 03, 2020 / 9:30AM, TLKM.JK - Q1 2020 Telekomunikasi Indonesia (Persero) Tbk PT Earnings Call
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