Telkom Indonesia (Persero) Tbk PT Q3 2023 Earnings Call Transcript

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

Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst : Two quick questions from my side. There are a bunch of moving parts. So if you could just quantify what your underlying clean net profits are excluding any one-off gains and losses? The second is that you have seen a pretty significant improvement in certain costs like G&A, but also O&M cost as well. I know you talked about closing some stores. But if you can also help us explain what some of the other drivers are and if they are sustainable. Unidentified Company Representative Okay. Ranjan, I think on the net income, net profit, maybe we need to consider by 2 ways. If you see the inside of the profit, we also have the kind of unrealized loss or gain that may come from our investment in broadband for example. That's going to becoming effective, going to determine the net income of the company after the end of the year, in which we are -- we have the control of the -- what is the stock price of go to. But when you see the net income coming from the operational, that's supposed to be quite predictable. You can predict that one based on our results up to the third quarter. I think that trend going to be sustainable up to the end of the year. So we don't like to see any surprise in the net income coming the operation. And in fact, actually, when we talk about on the dividend, we always consider from, I think, what we need to return to the investor based on I think dividend per share and also yield and so on. And then unrealized loss, again is not coming as a cash. So we have quite good -- let's say, during last year that enable us more to invest continue and also maintain the dividend payout. And then on the G&A cost, I think it is -- if we see the 2 main contributor to this is actually coming from collection costs and consultancy cost. It is supposed to be -- in terms of the production cost, it is supposed to be very predictable based on the current performance, what is our collection cost. It is, I think, very predictable. And we believe this turn going to sustain based on the percentage in the revenue.

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : My first question, and if you can basically confirm about there is an uptick on the enterprise segment, if this is correct. And what's driving it? And yes, what's the outlook on that segment? Unidentified Company Representative Okay. From the enterprise segment, actually, the revenue growth 6.6% coming from the enterprise connectivity. And then (inaudible)

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : Okay. Okay. Maybe for another question is on the InfraCo comments earlier, is going to close by the end of this year. And how many kilometers of fiber -- I understand that you have to set up a new unit, and you're going to transfer the assets there. So I'm assuming it's about fiber. What kind of -- how many kilometers that is in total? And is it only backbone or includes FTTH or also FTTT? Unidentified Company Representative Yes, as Pak Ririek already mentioned before, we will set up the FTTT on this year. But for the commercial, we already start selling those assets. We are the wholesale division. And then (inaudible) we are still on the process of analyzing what is the optimum scenario to transfer the asset. It's not only for the asset, but also the momentum because we did some approval or components that we have to follow if the asset is quite used from our stakeholder. So -- and then the element of the asset that we will close as part of InfraCo strategy, of course, we will start from the last man but of course, it's not closed the opportunity also for other fiber asset. Thank you.

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : But some of that 158 million is also have IndiHome, right? This is my first... Unidentified Company Representative Yes, yes, yes. And I mean, our strategy of Telkomsel One is not just from a product holding perspective. There is seamless connectivity, similar experience from one app and one customer touch point perspective. In fact, the content offering that we are going to market to our customers is a multiscreen offering already. So it is not a silo mobile or the TV offer. So that's where we see this adding value to our customers. So this is really our holistic Telkomsel One strategy.