Mar 31, 2013 - Blended ARPU for 1Q13 was stable compared to previous year at Rp36K and .... Telkomsel's Call Center has
T H E
F I R S T
TICKERS: IDX : TLKM NYSE : TLK LSE : TKID
Q U A R T E R
2 0 1 3
R E S U L T S
ISSUED SHARES: 20,159,999,280 shares
( U N A U D I T E D )
SHAREHOLDER COMPOSITION: Govt. of Indonesia : 53.9% Public : 46.1% Excl. Treasury stock 1,010,930,460 shares.
CONVERSION RATES (US$ 1.00): March 31, 2013 = Rp9,717.5 March 31, 2012 = Rp9,144.0
Highlight FINANCIAL PERFORMANCE Revenue (in Rp. Bn)
Our consolidated revenue in 1Q13 grew by 9.8% YoY to Rp19.5 trillion and our celullar subsidiary recorded a 13.3% YoY revenue growth to Rp13.9 trillion. Our broadband users grew by 62.1% YoY, meanwhile cellular subscribers increased 9.8% YoY to 120.6 million. Fixed line business’ revenue still recorded positive growth with 0.1% YoY growth. Telkomsel kept deploying around 1,000 new BTS per month during 1Q13 with almost 70% was 3G Node B.
Financial Highlights Key Indicators (Rp. Bn)
YoY 1Q12
QoQ
1Q13
Revenues
Growth (%) 17,796 19,547 9.8
Expenses
11,576 12,797
2Q12
3Q12
4Q12
1Q13
18,924
20,144
20,279
Growth (%) 19,547 (3.6)
10.5
12,844
13,138
13,888
12,797
(7.9)
Operating Profit
6,220
6,750
8.5
6,080
7,006
6,391
6,750
5.6
EBITDA
9,623 10,049
4.4
9,659
10,638
9,837
10,049
2.2
EBITDA Margin (%) Net Income
54.1
51.4
(2.7)
51.0
52.8
48.5
51.4
2.9
3,322
3,477
4.7
3,106
3,573
2,849
3,477
22.0
3Q12
QoQ 4Q12
1Q13
Operational Highlights OPERATIONAL PERFORMANCE Subscribers (million)
Subscriber (000)
1Q12
YoY 1Q13 Growth (%)
2Q12
Growth (%)
Broadband Fixed Broadband/ Speedy
1,884
2,652
40.8
1,957
2,131
2,341
2,652
13.3
Mobile Broadband/ Flash
5,241
8,767
67.3
5,807
8,662
11,039
8,767
(20.6)
Blackberry
3,348
5,557
66.0
4,055
5,126
5,764
5,557
(3.6)
10,473 16,976
62.1
11,819
15,919
19,144
16,976
(11.3)
Total Cellular Postpaid Prepaid Total
2,219
0.3
2,119
2,155
2,149
2,219
3.3
107,668 118,392
2,213
10.0
115,116
119,322
122,997
118,392
(3.7)
109,881 120,611
9.8
117,235
121,477
125,146
120,611
(3.6) 1.1
Fixed Line LIS Wireline
Investor Relations PT Telekomunikasi Indonesia Tbk Grha Citra Caraka, 5th Floor Jl. Gatot Subroto No. 52, Jakarta 12710 Phone : 62 21 5215109 Fax : 62 21 5220500 Email :
[email protected] Website : www.telkom.co.id
9,044
4.1
8,774
8,854
8,946
9,044
LIS Wireless
15,123 18,384
8,686
21.6
16,237
16,782
17,870
18,384
2.9
Total
23,809 27,428
15.2
25,011
25,636
26,816
27,428
2.3
DISCLAIMER This document contains financial conditions and result of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements, by their nature, involve risk and uncertainty that could cause actual results and development to differ materially from those expressed or implied in these statements. Telkom Indonesia does not guarantee that any action, which may have been taken in reliance on this document, will bring specific results as expected.
THE FIRST QUARTER 2013 (UNAUDITED)
PT TELEKOMUNIKASI INDONESIA, Tbk. THE FIRST QUARTER 2013 RESULTS (UNAUDITED) The following analysis and discussion is based on our Indonesian GAAP financial statements for the three months ended March 31, 2012 and 2013. The reports have been submitted to Indonesia Financial Services Authority (OJK).
FINANCIAL RESULTS Revenues Key Indicators (Rp. Bn)
Cellular Fixed Line Voice Data, Internet & IT Service (Incl.SMS) Interconnection Network Other Telco Services Total
YoY 1Q12
1Q13
QoQ Growth (%)
2Q12
3Q12
4Q12
1Q13
Growth (%)
7,197 2,805
7,578 2,494
5.3 (11.1)
7,469 2,760
7,931 2,548
8,134 2,549
7,578 2,494
(6.8) (2.2)
6,115
7,347
20.1
6,627
7,348
7,534
7,347
(2.5)
876 306 497 17,796
1,145 332 651 19,547
30.7 8.5 31.0 9.8
1,034 318 716 18,924
1,178 306 833 20,144
1,185 278 599 20,279
1,145 332 651 19,547
(3.4) 19.4 8.7 (3.6)
Total revenue for 1Q13 is Rp19.5 trillion, an increase of 9.8% YoY. Cellular revenues is still the largest contributor followed by Data, internet and IT services as the second contributor. Total revenue decreased by 3.6% QoQ with details are as follows:
Cellular revenues decreased by 6.8% QoQ resulting from the decrease of local and long distance usage revenue, it represents the seasonality of first quarter. It was a 5.3% YoY increase due to higher usage compared to last year.
Fixed line revenues, consisted of fixed wireline and fixed wireless voice revenues, decreased by 2.2% QoQ. o
Fixed wireline revenue decreased by 1.8% or amounting to Rp41.3 billion as a result of decrease in local and long distance usage revenues.
o
Fixed wireless revenue decreased by 4.9% or amounting to Rp13.9 billion as results of decrease in postpaid usage and long distance usage revenues.
Data, Internet & IT Services revenues decreased by 2.5% QoQ. The decrease was contributed by SMS revenue that decreased by 7.1% QoQ, mostly derived from celullar SMS. On the other side, internet and data communication revenues increased by 1.4% driven by the increase in cellular data, fixed line broadband and corporate internet revenues, which compensated by the decrease of VPN data communication revenue.
Interconnection revenues decreased by 3.4% QoQ or amounting to Rp38.7 billion mostly derived from cellular interconnection.
Network revenues increased by 19.4% QoQ resulting from the increase in transponder revenue amounting to Rp35.3 billion and other lease line revenue amounting to Rp20.1 billion.
Other telecommunication services revenues increased by 8.7% QoQ as a combined impact of increase in modem revenue, tower business revenue and USO services, which compensated by the decrease in directory assistant revenue, CPE and set top box revenues.
2
THE FIRST QUARTER 2013 (UNAUDITED)
Expenses YoY
Key Indicators (Rp. Bn)
Operation, Maintenance & Telecommunication Service Personnel Interconnection Marketing General Administrative Depreciation & Amortization (Gain)/Loss on forex – net & others – net Total
1Q12
1Q13
QoQ Growth (%)
2Q12
3Q12
4Q12
1Q13
Growth (%)
3,916 2,047 995 635 580 3,465
4,698 2,331 1,175 651 643 3,462
20.0 13.9 18.1 2.5 10.9 (0.1)
4,319 2,118 1,136 825 867 3,502
4,610 2,134 1,244 749 769 3,634
3,958 3,487 1,292 885 820 3,855
4,698 2,331 1,175 651 643 3,462
18.7 (33.2) (9.1) (26.4) (21.6) (10.2)
(62) 11,576
(163) 12,797
162.9 10.5
77 12,844
(2) 13,138
(409) 13,888
(163) 12,797
(60.1) (7.9)
Compared to last quarter results, total expenses decreased by 7.9% with the following details:
Operation & Maintenance (“O&M”) expenses increased by 18.7% QoQ mostly derived from radio base station maintenance expenses since there was reclasification of tower slot lease from operating to finance lease that impacted O&M expense in 4Q12 to be lowered. Meanwhile, power and insurance expenses decreased. This insurance was related to the satellite Telkom-3 that was expensed in 4Q12.
Personnel expenses decreased by 33.2% QoQ mostly due to the absence of ERP in 1Q13 and decrease in incentives expenses compared to last quarter.
Interconnection expenses decreased by 9.1% QoQ which was contributed by decrease in cellular and international interconnection charges.
Marketing expenses decreased by 26.4% QoQ mostly due to decrease in advertising & promotion expense.
General & Administrative expenses decreased by 21.6% QoQ. The decrease contributed by the decrease in impairment for obsolete inventories and receivables, domestic training expense, social contribution expense, retribution and audit expense.
Depreciation & Amortization expenses decreased by 10.2% QoQ, mostly as a result of the decrease in switching equipment expenses and decrease in fixed assets impairment.
EBITDA, EBITDA Margin and Net Income First quarter 2013 EBITDA increased by 4.4% YoY and 2.2% QoQ to Rp10.0 trillion and resulting EBITDA margin a bit lower 2.7% YoY but increase 2.9% QoQ, to 51.4%. Net Income for 1Q13 increased by 4.7% YoY and increase 22.0% QoQ to Rp3.5 trillion. The basis to calculate the EBITDA is the expenses without depreciation & amortization expenses, forex exchange gain or loss, and others-net.
3
THE FIRST QUARTER 2013 (UNAUDITED)
Financial Position YoY
Key Indicators (Rp. Bn)
Assets Liabilities Non-controlling Interests Equity attributable to owners of the company
1Q12
1Q13
104,624 40,237 14,704
116,104 44,137 16,935
49,683
55,032
QoQ Growth (%)
Growth (%)
2Q12
3Q12
4Q12
1Q13
11.0 9.7 15.2
101,536 43,717 12,434
105,402 42,637 14,037
111,369 44,391 15,437
116,104 44,137 16,935
4.3 (0.6) 9.7
10.8
45,385
48,728
51,541
55,032
6.8
Increase in assets by 4.3% QoQ was a result of increase in current assets, this was mainly due to increase in cash and cash equivalent.
Slight decrease in Liabilities by 0.6% QoQ was a result of decrease in obligation under finance lease.
Increase in non-controlling interest of 9.7% QoQ was due to the increase of non-controlling net assets of subsidiaries.
Increase in Equity of 6.8% QoQ was due to the increase in net income and no more share buy back program in 1Q13.
Cash Flows YoY
Key Indicators (Rp. Bn)
1Q12
Growth (%)
1Q13
Cash Flow from Operating Activities
8,775
7,685
(12.4)
Cash Flow from Investing Activities
(4,004)
81
(102.0)
Cash Flow from Financing Activities
(3,257)
(801)
(75.4)
1,514
6,965
360.0
Net Increase (Decrease) in Cash & Cash Equivalent
15
29
93.3
9,634
13,118
36.2
11,163
20,112
80.2
Effect of Foreign Rate Changes Cash & Cash Equivalents at Beginning of Periods Cash & Cash Equivalents at End of Periods
Net cash generated from operations decreased by 12.4% YoY due to the higher cash out for expense payment in 1Q13 compared to the same period last year.
Net cash used for investment decreased by 102.0% YoY due to the cash received as the short term investment maturing (time deposits more than 3 months) in 1Q13.
Net cash used for financing activities decreased by 75.4% YoY. This was driven by the cash in from the new bank’s loans, the less payments for loans compared to the same period last year and there was no cash used for share buy back in 1Q31 since the last program, SBB IV, was expired in November 2012.
Debts Currencies (Rp. Bn)
YoY
QoQ
Portion (%)
4Q12
1Q13
13,293
Growth (%) 19.0
13,922
13,293
Growth (%) (4.5)
1,927
(15.8)
1,998
1,927
1,112 951 14,574 16,171
(14.5) 11.0
1,031 16,951
951 16,171
1Q12
1Q13
IDR/Rupiah
11,174
USD/US Dollar JPY/Japanese Yen Total
2,288
1Q12
4Q12
1Q13
76.7
82.1
82.2
(3.6)
15.7
11.8
11.9
(7.8) (4.6)
7.6 100.0
6.1 100.0
5.9 100.0
4
THE FIRST QUARTER 2013 (UNAUDITED)
Our debts consisted of Two-Step Loans (“TSL”), Bonds, Notes and Bank’s Loans. During first quarter 2013, we made repayment of Bank’s Loans, TSL, MTN and Notes of Rp871 billion, Rp20 billion, Rp8 billion and Rp51 billion, respectively. We made new debts for working capital purposes in the form of Bank’s loans amounting to Rp249.0 billion. Gearing YoY
Key Indicators 1Q12
1Q13
7.7
Net Debt to Equity (%) Debt to Equity (%) Debt to EBITDA (%)
Growth
(8.9)
30.9
29.4
159.6
160.9
2.2
1.9
Debt Service Ratio (Times)
(16.6) (1.5) 1.3 (0.3)
Financial Ratio Ratios (%)
Profit Margin Profit for the year attributable to owners Margin
EBITDA Margin Current Ratio Return on Assets Return on Equity Total Liabilities to Equity
YoY 1Q12
1Q13
QoQ Growth (%)
2Q12
3Q12
4Q12
1Q13
Growth (%)
35.0
34.5
(0.5)
32.1
34.8
31.5
34.5
3.0
18.7 54.1 106.3 3.2 6.7 81.0
17.8 51.4 133.9 3.0 6.3 80.2
(0.9) (2.7) 27.6 (0.2) (0.4) (0.8)
16.4 51.0 84.0 3.1 6.8 96.3
17.7 52.8 104.2 3.4 7.3 87.5
14.0 48.5 116.0 2.6 5.5 86.1
17.8 51.4 133.9 3.0 6.3 80.2
3.8 2.9 17.9 0.4 0.8 (5.9)
Telkomsel Financial Result As a result of Telkomsel’s efforts to monetize traffic and to further grow our data business, and also our costs management programs, we recorded a strong financial results in the first quarter 2013.
Income Statement Statement of Income (Rp. Bn)
Revenues Expenses (incl. Depreciation) EBITDA EBITDA Margin (%) Net Income
YoY 1Q12
1Q13
12,298 7,600 7,075 58 3,505
13,928 8,279 7,838 56 4,294
QoQ Growth (%)
13 9 11 (2) 23
4Q12
1Q13
14,673 9,331 7,870 54 3,995
13,928 8,279 7,838 56 4,294
Growth (%)
(5) (11) 0 2 7
Operating revenues for 1Q13 was Rp13.93 trillion, an increase of 13% YoY, which was driven by data broadband growth (36% growth YoY) as well as growth in voice and SMS. Revenue declined 5% QoQ due to legacy services while data broadband and digital services recorded growth.
Postpaid revenue was relatively stable compared to 1Q12 at Rp1.09 trillion. It slightly increased by 1% QoQ, due to growth from data broadband revenue growth. Prepaid revenue grew 13% YoY to Rp11.58 trillion contributed by data broadband revenue growth as well as increase in voice and SMS services. It decreased 5% QoQ due to voice and SMS revenues.
5
THE FIRST QUARTER 2013 (UNAUDITED)
Interconnection and international roaming revenues increased 31% YoY to Rp1.12 trillion due to the implementation of SMS interconnection charging that commenced in June 2012. It declined 5% QoQ due to decline in domestic interconnection revenue.
For the first quarter of 2013, expenses increased by 9% YoY, lower than revenue growth of 13%. The increase was mainly from increase in operation & maintenance expenses due to accelerated network deployment strategy. It declined 11% QoQ, mainly due to decrease in sales, marketing and personnel expenses as well as lower interconnect charges.
Personnel expenses increased 20% YoY to Rp579 billion, contributed by organization restructuring program and higher employee incentive due to better financial performance in 1Q13 compared to 1Q12. It declined 20% QoQ due to lower employee allowances and incentives. Operation & maintenance expenses grew 18% YoY to Rp3.10 trillion, in line with increased network deployed to support network capacity expansion and quality improvement. It declined 3% QoQ mainly due to lower power supply cost. General & administration expenses increased 23% YoY to Rp243 billion due to higher business operation costs such as rental, travel and transportation costs. It declined 13% QoQ mainly due to lower expenses for training & development and professional fees. Marketing expenses increased 25% YoY to Rp502 billion due to higher advertising & promotion costs and sales support cost in line with increased business activities. It decreased 29% QoQ due to seasonal decline in advertising & promotion costs. Interconnection charges increased 26% to Rp785 billion, largely as a result of higher domestic interconnection due to the implementation of SMS interconnection charges. It declined 9% QoQ due to lower domestic interconnection. Cost of Services declined 2% YoY to Rp883 billion. It was 13% lower QoQ due to lower concession fees and cost of cards. Depreciation expenses decreased 6% YoY to Rp2.24 trillion and 2% QoQ due to combine impact of fixed-assets growth and lower depreciation from changes on estimate useful life of tower assets and retirement/disposal of fixed-assets.
Net finance costs (interest income and financing charges) increased from a net cost of Rp3 billion to a net income of Rp55 billion mainly due to higher interest income in line with higher balance of cash and cash equivalents. EBITDA increased by 11% YoY to Rp7.84 trillion, while EBITDA margin was 56%. Net income climbed 23% YoY to Rp4.29 trillion.
Financial Position Total Assets increased 11% to Rp67.29 trillion. Total liabilities increased 1% to Rp19.17 trillion and total equity increased 15% to Rp48.13 trillion. Current assets increased 41% to Rp17.46 trillion, which was mainly from cash and cash equivalents. Fixed assets increased slightly by 2% to Rp46.56 trillion as a result of network infrastructure growth combined with assets retirements. Current liabilities increased 2% to Rp13.65 trillion, due mostly to an increase in unearned revenue. Non-current liabilities declined 2% to Rp5.52 trillion mainly due to decline of medium-term loans balance combined with increase in obligations under capital lease.
6
THE FIRST QUARTER 2013 (UNAUDITED)
As of March 31, 2013 Telkomsel had Rp2.81 trillion loans outstanding, of which Rp1.51 trillion was presented as current liabilities and Rp1.30 trillion as non-current liabilities.
Cash Flows We recorded a 9% increase in net cash generated from operations in 1Q13 to Rp7.40 trillion. Cash flow from investment activities increased 155% to Rp1.30 trillion due to proceed from short-term investment. It included total cash spent for fixed-assets acquisition of Rp2.36 trillion. Net cash used in financing activities fell 55% to Rp682 billion due to lower loans payment.
STATEMENT OF CASH FLOWS AS OF MARCH 31, 2012 AND 2013 (In Billions of Rupiah) 1Q12
1Q13
Cash Flow from Operating Activities
6,792
7,404
Cash Flow from Investing Activities
(2,372)
1,296
Cash Flow from Financing Activities
(1,502)
Net Increase in Cash & Cash Equivalents Effect of Foreign Exchange Rate Changes
(682)
2,918
8,018
11
8
Cash and Cash Equivalents at Beginning of Periods
4,223
4,787
Cash and Cash Equivalents at End of Periods
7,152
12,813
Addition to Fixed Assets (incl. CIP)
2,256
2,512
Loan/ Debt Telkomsel has to observe certain agreed financial covenants related to its loans/debts. As of March 31, 2013 these covenants were as follows: Covenant t/b maintained Bank Loans
Required
Actual
EBITDA to Debt Service
≥ 1.25
17.85
Debt to Tangible Net Worth
≤ 2.00
0.06
7
THE FIRST QUARTER 2013 (UNAUDITED)
OPERATIONAL RESULTS Broadband Services Customer Base Fixed Broadband 2.65 million users, grew 40.8% YoY and 13.3% QoQ.
Mobile Broadband 8.8 million Flash users, grew 67.3% YoY. Telkomsel’s BlackBerry customers reached 5.6 million, a 66% YoY growth. Total number of data users including of payas-you-use reached 49.9 million, grew 12% from the same period last year.
ARPU & Traffic Production Fixed Broadband 1Q13 ARPU was Rp146thousand, decreased of 10.3% QoQ and 22.4% YoY, caused by increasing of Speedy Instant users, prepaid service of fixed broadband.
Mobile Data & Broadband Data traffic/payload continued to show a significant growth in 1Q13 reached 17,614 terabytes, grew 64% YoY from the same period last year.
New Products & Programs Mobile Broadband Telkomsel launched New BlackBerry Sosialita package for simPATI users which valid from February 25 - March 30, 2013. The package allows customer to have browsing access, BBM chatting, social networking access (Facebook, Twitter & My Space), BONUS package (600 MB for streaming and downloading + 100 Minutes & 100 SMS to all Telkomsel customers + Free Music Download at LangitMusik for 30 days) and one email account (
[email protected]).
Due to Telkomsel’s commitment to provide best product for customers’ life style need, Blackberry Z10 was launched on March 2013. It comes with special data packages for postpaid and prepaid, supported by HSPA data connection, speed up to 14.4 Mbps and high definition for voice quality through 4G LTE network.
Cellular Services Customer Base As of March 2013, Telkomsel served 120.6 million customers comprising 2.2 million postpaid and 118.4 million prepaid customers. This represents an increase of 10.7 million customers and growth of 10% from a year ago. Traffic Production & ARPU Total MOU production for 1Q13 reached 45.9 billion minutes, an increase of 7% YoY and decrease of 5% QoQ. Average RPM for 1Q13 declined 2% YoY to Rp157. Total SMS production for 1Q13 was relatively stable at 62.3 billion units compared to 1Q12 and 4Q12. For 1Q13 average RPS reached Rp49, which was 11% higher than 1Q12.
8
THE FIRST QUARTER 2013 (UNAUDITED)
Blended ARPU for 1Q13 was stable compared to previous year at Rp36K and decreased by 5% compared to previous quarter. New Products & Programs Kartu As Gokil 10 Hari Nonstop promotion was introduced to customers in March 2013 offering bonus for voice/SMS/Internet for 10 days non-stop
Also in March 2013, Telkomsel launched Kupon Bonus simPATI in order to give more value for simPATI users. The program was launched with recharge discount coupons to be used to buy special packages (internet access, Blackberry service, voice and SMS), Rp100K discount for electronic devices at www.plasa.com, and up to 70% discount for fashion items at www.zalora.co.id.
Network Development Telkomsel continued to accelerate its network development to support the increasing data traffic by giving more focus on 3G Node-B deployment. In 1Q13, Telkomsel added 3,367 units new BTS, of which 2,325 units were 3G Node-B. Total BTS on air as at end of 1Q13 were 57,664 units, including 17,758 3G Node-Bs (75% increase YoY). The following table presents a comparison of our cellular business performance: YoY Key Indicators
Unit
1Q12
QoQ
1Q13
Growth
2Q12
3Q12
4Q12
1Q13
Growth
CUSTOMER BASE Total Customer Postpaid (kartuHALO) Subs (000) Prepaid (simPATI + Subs (000) Kartu As)
2,213
2,219
0.3
2,119
2,155
2,149
2,219
3.3
107,668
118,392
10.0
115,116
119,322
122,997
118,392
(3.7)
Subs (000)
109,881
120,611
9.8
117,235
121,477
125,146
120,611
(3.6)
Postpaid (kartuHALO)
Subs (000)
26
70
169.2
(95)
37
(7)
70
1,114.5
Prepaid (simPATI + Kartu As)
Subs (000)
2,839
(4,606)
(262.2)
7,448
4,206
3,676
(4,606)
(225.3)
Total
Subs (000)
2,865
(4,536)
(258.3)
7,353
4,243
3,669
(4,536)
(223.6)
Bn Minutes Bn Units
43 62
46 62
7.1 0.5
45 64
49 64
48 63
46 62
(4.8) (0.8)
Total Net Add
MoU (Total) SMS (Total) ARPU Postpaid (kartuHALO)
Rp.'000 per mo
183
187
2.2
185
189
199
187
(6.0)
Prepaid (simPATI + Kartu As)
Rp.'000 per mo
33
33
0.0
34
35
35
33
(5.7)
Blended
Rp.'000 per mo
36
36
0.0
37
38
38
36
(5.3)
44,796
57,664
28.7
47,254
51,005
54,297
57,664
6.2
4,429
4,603
3.9
4,448
4,454
4,557
4,603
1.0
25
26
5.6
26
27
27
26
(4.6)
NETWORK DATA BTS
Unit
EMPLOYEE DATA Total employees
Person
Efficiency ratio
‘000 Subs/ employee
9
THE FIRST QUARTER 2013 (UNAUDITED)
Fixed Line Services Customer Base Fixed Wireline 9.0 million subscribers, 4.1% growth from last year and 1.1% from last quarter.
Fixed Wireless 18.4 million subscribers, at the end of 1Q13, grew 21.6%YoY. Compare to previous quarter, fixed wireless customers increased by 2.9%.
ARPU Fixed Wireline 1Q13 ARPU was at Rp80 thousand, a decrease 3.2% QoQ.
Fixed Wireless 1Q13 ARPU was at Rp7 thousand, a 9.5% decrease QoQ.
ADDITIONAL INFORMATION Capital Expenditure For the first quarter of 2013, paid Capex of Telkom, Telkomsel and other subsidiaries were amounting to Rp0.5trillion, Rp2.3trillion and Rp0.7 trillion respectively. Telkom’s Capex was mainly utilized for deploying access and backbone infrastructure to support the broadband services, Telkomsel's Capex was utilized for radio access network. Other Subsidiaries’ Capex was utilized among others for erecting tower and developing infrastructure.
Recent Development Telkomsel Won Additional 3G Frequency Spectrum Ministry Communication and Information on March 5th 2013 announced that Telkomsel won an additional frequency spectrum in radio frequency band of 2.1 GHz. The additional radio frequency band allocated to Telkomsel is on the frequency range of 1970-1975 MHz and 2160 – 2165 MHz. Addition of this frequency made total Telkomsel 3G frequency spectrum on the 2.1 GHz to be 15 MHz. For the new frequency spectrum, Telkomsel spent Rp 564.5 billion for upfront fee and first year annual fee.
Awards & Recognition During 1Q2013, we have been awarded by several institution for our achievements, among others:
5 awards for Telkomsel in the 10th of the reputable Selular Award, including Operator of the Year, Best GSM Operator, Best BlackBerry Services, Best Postpaid for kartuHalo, dan Best Prepaid for simPATI.
The best Internet Service Provider (ISP) in Indonesia 2012 for Speedy from Chip Magazine in the event of Chip Award 2013 in Jakarta.
Most Admired CEO 2013 for CEO Arief Yahya (AY) and 19 other CEOs of top big companies in Indonesia from magazine of Warta Ekonomi in Jakarta.
CNET Asia Readers’ Choice Award for Telkomsel as the Best Indonesian Telco from CNET (Centre National d'Études des Télécommunications) Asia.
10
THE FIRST QUARTER 2013 (UNAUDITED)
Top Brand Award for kartuHalo (Postpaid SIM-card category) and simPATI (Prepaid SIM-card category) from Marketing Magazine and Frontier Consulting Group.
Top Brand Award for Telkomsel Flash (Mobile ISP category) and Telkomsel BlackBerry Internet Service (BlackBerry Service Provider category) from Marketing Magazine and Frontier Consulting Group.
The Indonesia Middle-Class Brand Champion 2013 for simPATI (Prepaid GSM SIM-card category) and Telkomsel Flash (Internet Provider category) from SWA Magazine and Inventure Market Research.
Indonesia Brand Champion Award 2013 for simPATI as the Most Widely Used of GSM and Telkomsel Flash as the Most Widely Used of Cable Internet Provider Brand from Marketeers Magazine and Markplus Insight.
Excellent Service Performance for Telkomsel in Contact Center Service Excellence Award (CCSEA) 2013 conducted by Marketing Magazine and Care-Center for Customer Satisfaction and Loyalty (Carre-CCSL) in Jakarta. Telkomsel’s Call Center has been the best for 8 consecutive years.
11
THE FIRST QUARTER 2013 (UNAUDITED) Table 1 PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) (figures are presented in billions of Rupiah) DEC 31, 2012
MAR 31, 2013
Growth (%)
ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Trade receivables – net of provision for impairment of receivables Related parties Third parties Other receivables – net of provision for impairment of receivables Inventories – net of provision for impairment obsolescence Advances and prepaid expenses Claims for tax refund Prepaid taxes Asset held-for-sale
13,118 4,338
20,112 951
53.3 (78.1)
701 4,522 186 579 3,721 436 372 -
663 5,216 234 703 3,583 438 327 130
(5.4) 15.3 25.8 21.4 (3.7) 0.5 (12.1) -
Total Current Assets
27,973
32,357
15.7
NON-CURRENT ASSETS Long-term investments - net Property, plant and equipment – net of accumulated depreciation Prepaid pension benefit cost Advances and other non-current assets Intangible assets – net of accumulated amortization Deferred tax assets - net
275 77,047 1,032 3,510 1,443 89
272 77,050 1,007 3,922 1,383 113
(1.1) 0.0 (2.4) 11.7 (4.2) 27.0
Total Non-current Assets
83,396
83,747
0.4
111,369
116,104
4.3
TOTAL ASSETS
12
THE FIRST QUARTER 2013 (UNAUDITED) Table 1 (Continued) PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) (figures are presented in billions of Rupiah) DEC 31, 2012
MAR 31, 2013
Growth (%)
LIABILITIES AND EQUITY CURRENT LIABILITIES Trade payables Related parties Third parties Other payables Taxes payables Accrued expenses Unearned income Advances from customers and suppliers Short-term bank loans Current maturities of long-term liabilities
432 6,848 176 1,844 6,163 2,729 257 37 5,621
636 6,493 429 2,135 5,829 2,940 275 154 5,268
24,107
24,159
0.2
3,059 334 347 679 2,248
3,099 313 351 682 2,382
1.3 (6.3) 1.2 0.4 6.0
1,814 1,791 3,229 6,783
1,967 1,698 3,202 6,284
8.4 (5.2) (0.8) (7.4)
Total Non-current Liabilities
20,284
19,978
(1.5)
TOTAL LIABILITIES
44,391
44,137
(0.6)
5,040 1,073 (8,067)
5,040 1,073 (8,067)
-
478 386 42 271 (508) 49
478 386 53 274 (508) 49
26.2 1.1 -
Total Current Liabilities NON-CURRENT LIABILITIES Deferred tax liabilities Other liabilities Long service awards provisions Post-retirement health care benefit provisions Retirement benefits obligation and other post retirement benefits Long-term liabilities - net of current maturities Obligations under finance leases Two-step loans - related party Bonds and Notes Bank loans
47.2 (5.2) 143.8 15.8 (5.4) 7.7 7.0 316.2 (6.3)
EQUITY EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT Capital stock - Rp.250 par value per Series A Dwiwarna share and Series B share Authorized - 1 Series A Dwiwarna share and 79,999,999,999 Series B shares Issued and fully paid - 1 Series A Dwiwarna share and 20,159,999,279 Series B shares Additional paid-in capital Treasury stock Difference in value arising from restructuring transactions and other transactions between entities under common control Effect of change in equity of associated companies Unrealized holding gain from available-for-sale securities Translation adjustment Difference due to acquisition of non-controlling interest in subsidiaries Other reserves Retained earnings Appropriated Inappropriate
15,337 37,440
15,337 40,917
9.3
Total Equity Attributable To Owners Of The Parent Company
51,541
55,032
6.8
Non-Controlling Interest
15,437
16,935
9.7
TOTAL EQUITY
66,978
71,967
7.4
111,369
116,104
4.3
TOTAL LIABILITIES AND EQUITY
13
THE FIRST QUARTER 2013 (UNAUDITED) Table 2 PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES FOR 2012 (UNAUDITED) (in billions of Rupiah, except per share and per ADS data) 2012
2013
Growth (%)
REVENUES
17,796
19,547
EXPENSES Operations, maintenance and telecommunication services Depreciation and amortization Personnel Interconnection Marketing General and Administrative Loss on foreign exchange – net Other income Other expense
(3,916) (3,465) (2,047) (995) (635) (580) 16 180 (134)
(4,698) (3,462) (2,331) (1,175) (651) (643) 91 129 (57)
6,220
6,750
8.5
129 (278) -
208 (324) (3)
61.2 16.5 -
6.071
6,631
9.2
(1,698) 186 (1,512)
(1,627) (19) (1,646)
4,559
4,985
9.3
2 3
3 11
50.0 266.7
5
14
180.0
4,564
4,999
9.5
3,322 1,237 4,559
3,477 1,508 4,985
4.7 21.9 9.3
3,327 1,237 4,564
3,491 1,508 4,999
4.9 21.9 9.5
172.2 6,888.0
181.6 7,263.2
5.4 5.4
OPERATING PROFIT Finance income Finance costs Share of loss of associated companies PROFIT BEFORE INCOME TAX INCOME TAX (EXPENSE) BENEFIT Current Deferred
PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME Foreign currency translation Change in fair value of available-for-sale financial assets Total Other Comprehensive Income – net TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Profit for the period attributable to: Owners of the parent company Non-controlling interests Total comprehensive income for the period attributable to: Owners of the parent company Non-controlling interests BASIC AND DILUTED EARNINGS PER SHARE Income per share Income per ADS (40 Series B shares per ADS)
9.8
20.0 (0.1) 13.9 18.1 2.5 10.9 468.8 (28.3) (57.5)
(4.2) (110.2) 8.9
14
THE FIRST QUARTER 2013 (UNAUDITED) Table 3 PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES STATEMENT OF FINANCIAL POSITION AS OF MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) (figures are presented in billions of Rupiah) DEC 31, 2012
ASSETS CURRENT ASSETS Cash & cash equivalents Short-term Investments Accounts receivables including Unbilled revenues Current portion of long-term prepayments Others Total Current Assets NON-CURRENT ASSETS Long-term investment Fixed assets-net Advances for fixed assets Intangible assets-net Prepayments – Non Current Portion Others Total Non-Current Assets TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable & Accrued Liabilities Taxes payable Unearned revenue Current maturities of medium-term & long-term loans Current portion of obligations under finance lease Total Current Liabilities NON-CURRENT LIABILITIES Medium-term & long-term loans - net of current maturities Obligations under finance lease – net of current maturities Deferred tax liabilities Others Total Non-current Liabilities EQUITY Capital Stock - Rp1,000,000 par value Authorized - 650,000 shares Issued and fully paid - 182,570 shares Additional paid-in capital Retained earnings Total Equity TOTAL LIABILITIES AND EQUITY
MAR 31, 2013
Growth (%)
4,787 4,000 1,045 3,081 669
12,813 350 1,058 2,507 730
167.7 (91.3) 1.2 (18.6) 9.1
13,582
17,458
28.5
20 46,480 558 680 1,327 270
20 46,563 527 705 1,758 263
0.2 (5.6) 3.7 32.5 (2.6)
49,335
49,836
1.0
62,917
67,294
7.0
8,071 1,075 2,323 1,472 98
8,084 1,393 2,564 1,511 95
0.2 29.6 10.4 2.6 (3.1)
13,039
13,647
4.7
2,013 1,057 2,099 877
1,300 1,203 2,085 932
(35.4) 13.8 (0.7) 6.3
6,046
5,520
(8.7)
183 1,505 42,144
183 1,505 46,439
10.2
43,832
48,127
9.8
62,917
67,294
7.0
15
THE FIRST QUARTER 2013 (UNAUDITED) Table 4 PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES STATEMENT OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES FOR 2012 (UNAUDITED) (figures in tables are presented in billions of Rupiah, otherwise stated) 2012
2013
Growth (%)
REVENUES Postpaid Prepaid Interconnection & International roaming Other
1,091 10,241 852 114
1,095 11,580 1,116 137
0.4 13.1 31.0 20.2
Total Revenues
12,298
13,928
13.3
EXPENSES Personnel Operation & maintenance General & administrative Marketing Interconnection Cost of services Depreciation Others - net
482 2,621 197 402 622 899 2,391 (14)
579 3,098 243 502 785 883 2,245 (56)
20.1 18.2 23.4 24.9 26.2 (1.8) (6.1) 300.0
Total Expenses
7,600
8,279
8.9
(3)
55
1,933.3
INCOME BEFORE TAX INCOME TAX EXPENSE
4,695 1,190
5,704 1,410
21.5 18.5
NET INCOME
3,505
4,294
22.5
EBITDA EBITDA Margin - over revenues
7,075 58%
7,838 56%
10.8 (2)
23% 34%
26% 37%
Interest income & financing charges
ROA ROE
3 3
16