Telkom Indonesia (Persero) Tbk PT Q3 2021 Earnings Call Transcript

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

Question: Arthur Pineda - Citigroup - Analyst : Hi, good afternoon. Thanks for the opportunity. Several questions please. First, in housekeeping, on the expense side, I'm just wondering what's driving the significant Q-on-Q increase in interest expense, considering that net debt was actually lower? Are there any one-off bookings being placed there? Again, another question, with regard to expenses. On the G&A side and labor charge, that's also been -- changed a fair bit. Any one-off items being booked there in the third quarter? Last question I had is with regard to the competitive landscape on mobile. Are you already starting to see any changes on this side or is this more of a 2022 story? Thank you.

Question: Arthur Pineda - Citigroup - Analyst : Understood. Thank you. Sorry, if I could just clarify, so when we look at items like interest expenses and G&A and all, should we see 3Q as the benchmark or we have to think about this on an annualized basis? I'm just wondering how we should see this into the fourth quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 30, 2021 / 8:00AM, TLKM.JK - Q3 2021 Telkom Indonesia (Persero) Tbk PT Earnings Call

Question: Choong Chen Foong - CIMB - Analyst : Hi, good afternoon. Thank you so much for the conference call. Three questions from me. Firstly, in your info memo, you mentioned about the O&M expenses going up, and this was in line with the development on digital content as a value-added service to enhance your digital business. Can I try and get a better understanding of this? Do we see content as an opportunity to upsell and generate revenues, or is content a necessary cost to help us differentiate and keep our customers in the market? That's question number one. And then my second question on the enterprise business, very strong growth for the first nine months of this year. Could you give us a bit more color as to what's driving this? Is this driven by the government from the private sector side, and do you have -- can you share also your order book for the enterprise segment and changes on a year-on-year basis? And given then the strong first nine months performance, is Telkom a lot more optimistic on the revenue growth going into FY 2022 for the enterprise segment? All right, that's question number two. And then my third question is with regards to the data center business. Beyond the 75-megawatt Hyperscale Data Center that Telkom is currently building, are we also planning to expand beyond that? Based on the market demand, how much more data center capacity do you think Telkom can build in the next 3 to 5 years beyond the current Hyperscale Data Center? Yes, those are my three questions. Thank you.

Question: Choong Chen Foong - CIMB - Analyst : What is the right thing for this?

Question: Choong Chen Foong - CIMB - Analyst : Okay. And can I just follow up with a few questions? So on the first question earlier, I know that for Telkomsel right now, most of the times I see bundle in free Disney+ Hotstar content. Can I ask whether the plan over the longer run is to charge for this content, or keep it free and use it to attract customers? So that is the follow-up question for question number one. And then number two, on the enterprise side, given the strong growth this year and the larger scale, what are the margins that we are generating on this business for the first nine months? And then thirdly, on the data centers, Singtel -- I think about one, two months ago -- mentioned that they are in advanced talks with Telkom to build -- or to build new or buy existing data centers in Indonesia and in the region. So do you see much opportunity to grow beyond your current hyperscale data center that you are building together with Singtel in Indonesia?

Question: JosT Chafi - UBS - Analyst : Hi, good afternoon and thanks for the call. A few questions from me. Firstly, on the mobile side, especially in the ex-Java, just want to understand, with consolidation and with (inaudible) past infrastructure, do Telkomsel see potentially higher competition in ex-Java in the coming years? And a related question is on the near-term outlook on mobile. With the reopening -- with opening up, how do you see mobile competition trending? The next question is on the IndiHome side. Just want to see -- just want to understand that is IndiHome -- is it more than 50% EBITDA margin? What should we guide steady-state margins for IndiHome? And the related question is how many home [spas] IndiHome has right now. Thank you.

Question: Piyush Choudhary - HSBC - Analyst : Two questions. Firstly on the IndiHome, could you share us -- with strong subscriber growth that you are still witnessing, what would be the probably outlook for 2022 on the subscriber net addition side? And secondly, could you also talk about your strategy around bundling offering, and I mean bundling of mobile and IndiHome together? I remember a few years back there were some pilots done by the Company. So can you provide us an update on what's the plan? The reason I ask is if you look at other markets, like in India, Airtel Black is offering -- is targeting high value customers to improve ARPU by bundling the services and providing better customer experience. So what is your thoughts regarding that?

Question: Piyush Choudhary - HSBC - Analyst : If I may ask again on the (inaudible) side, my question was more on Telkomsel Halo, which is targeting high-value postpay customers in IndiHome. Can you bundle the talk better, so for customers it is one bill, one customer service center, etc.? Is there any initiative towards that?

Question: Nicholas Santosa - Wantana - Analyst : Good afternoon. Just one question from me. Can you share a little bit on Mitratel's third-quarter performance? So on the -- do we see improvement in the Company's performance? And maybe if you could [itemize] a bit on what's next for the Company? That's all from me.