Tower Companies From The Djarum Group Owned By The Hartono Brothers Conglomerate Receive IDR2.84 Trillion Profits In 2020

JAKARTA - The telecommunications tower company, PT Sarana Menara Nusantara Tbk, posted performance growth in the 2020 financial year. The issuer coded as TOWR shares posted a net profit of Rp2.84 trillion.

Quoted from the TOWR financial report published on the Indonesia Stock Exchange (IDX) website, Wednesday, May 5, the profit achievement was up 21.09 percent from the same period in the previous year of IDR 2.34 trillion. Earnings per share also increased to Rp 57 per share from Rp 46 per share.

The increase in profit is in line with the increase in TOWR income from the previous Rp6.45 trillion to Rp7.44 trillion. If detailed, this revenue was contributed by the increase in lease income for third party telecommunication towers to Rp6.96 trillion from the previous Rp5.85 trillion.

Then, other service revenues amounted to IDR 345.07 billion. In addition, lease income from related parties was recorded at IDR 2.58 billion from other services valued at IDR 130.94 billion.

Meanwhile, the cost of revenue increased to Rp2.05 trillion from the previous Rp1.81 trillion. As a result, TOWR's gross profit became IDR 5.38 trillion from 2019 amounting to IDR 4.64 trillion.

In terms of assets, the Djarum Group telecommunications tower company owned by the Hartono brothers reached IDR 34.25 trillion as of 31 December 2020. This figure has increased from the position in December 2019 valued at IDR 27.66 trillion.

These assets consisted of liabilities of IDR 24.06 trillion and equity of IDR 10.18 trillion. For information, the increase in assets was mainly due to the purchase of towers from PT XL Axiata Tbk (EXCL) and the initial adoption of PSAK 73 where the company must recognize future use rights of leased assets related to land leases, office leases and satellite leases.

The increase in liabilities was due to the initial adoption of PSAK 73 wherein the lease financing debt was recognized for the commitment to lease office and satellite land and also the increase in bank debt related to the purchase of XL towers and the issuance of sustainable bonds II phase I in 2020 from its subsidiary, PT Profesional Telekomunikasi Indonesia or PT Protelindo.