Mitratel Is Ready To Welcome 2022, Here Are A Series Of 'actions' That Will Be Carried Out

Photo: Doc. Mitratel

JAKARTA - PT Dayamitra Telekomunikasi Tbk (MTEL) is ready to step on the gas to welcome 2022 with New Journey as a public company and is optimistic that it will be able to provide the best results as stated in the Initial Public Offering prospectus of November 22, 2021. This belief is in line with MTEL's ability to grow organically even faster.

Mitratel's organic growth potential is huge in the long term due to the high opportunity for the telecommunications tower rental business in Indonesia.

Currently, Mitratel is listed as the largest telecommunications tower infrastructure provider in the country, which has around 28,030 towers spread throughout Indonesia in strategic locations and 42,016 tenants.

Mitratel towers are spread throughout Indonesia, around 57 percent of which are outside Java. The wide coverage area of the Mitratel Tower enables the company to manage additional cooperation from telecommunication tower tenants.

In addition, Mitratel is considered the most ready to serve the expansion of operators outside Java which increases the collocation portfolio.

Mitratel is a leader in organic business development, namely built-to-suit (B2S) and new collocations from cellular network operators (MNO) by increasing capacity and coverage. Mitratel has a number of advantages compared to similar companies, including the company's ability to execute better B2S.

In addition, Mitratel is also able to utilize the spread of towers throughout Indonesia for the collocation of new tenants, both in urban and rural areas.

The high demand for tower construction (Built to Suit) and collocation from Mobile Operators is supported by the availability of In-Organic growth space through clear acquisitions of both tower consolidation within the group and from the potential for industrial consolidation in Indonesia. Mitratel's In-Organic growth is supported by its post-IPO funding capability where the company received an injection of more than Rp. 18 trillion.

Mitratel President Director Theodorus Ardi Hartoko Teddy said, "We are very ready to face the New Journey as a public company, not only transparent and maintaining Good Corporate Governance (GCG) but also professional, independent and efficient use of IPO results to grow aggressively into The Leading Digital Infrastructure in the Region. .

"We will always strive to be a favorite issuer for investors by being able to deliver optimal value to shareholders," said the man who is familiarly called Teddy in a written statement, Sunday, January 2.

Mitratel's achievement in the third quarter of 2021 was in line with expectations and grew above the industry, YoY revenue grew 14.6 percent to Rp 5 trillion, Ebitda grew 28.3 percent to Rp 3.8 trillion and Net Income grew 246.4 percent to more than Rp 1 trillion.

"In the third quarter, we also succeeded in increasing the tower portfolio through inorganic from Telkomsel 4,000 towers and Telkom 798 towers, bringing the total tower portfolio to 28,079 sites or grew 72.9 percent with 42,137 tenants or a tenancy ratio of 1.5x," he added.

Teddy added that the low Tenancy Ratio was due to the purchase of towers which were previously limited to 1 operator. However, currently there are wide opportunities to attract collocations from all operators due to its attractive location distribution, coupled with Mitratel's plan to support tower rental services with fiberization.

"So, it will further support telecommunication operators in providing unlimited digital services for their customers," he said.

With strong funding capabilities both from the IPO results on November 22, 2021 of more than IDR 18 trillion as well as the lowest leverage and cost of debt compared to other operators, Teddy stated that management and all employees are very excited to welcome every opportunity that exists and will focus on Some of the plans are:

1. Organic Growth is more aggressive, both building new and adding collocations for all operators. Mitratel is also independent in optimizing its tower portfolio spread across Indonesia in strategic locations, especially towers that have been acquired from Telkomsel to be utilized by other operators such as EXCL, ISAT and FREN.

2. Continuing the aggressiveness of the in-Organic Growth action by further consolidation of the Telkom Group Tower as well as from consolidation in the domestic market. If there are attractive opportunities that continue to provide added value for shareholders, Mitratel also does not rule out becoming a consolidator of industry and exploration in the region.

3. Expansion into new services by building capabilities towards a Digital Infrastructure company, either in the form of tower fiberization through building, B2B partnerships/wholesale agreements or acquisitions, preparing readiness for Infrastructure as a service/infrastructure solution and edge computing.

4. Carry out continuous improvement to encourage better efficiency for O&M, Capex and operations with IT system integration (digitalization) and asset management.

"Indonesia is a country with a low population per tower ratio, so the development of telecommunication networks is still very promising, plus we have unique competitive advantages, namely 58 percent of towers are outside Java and another potential is the acquisition of towers from Telkomsel the previous year which can be utilized by other telecommunication operators to expand their network coverage. Therefore, Mitratel is optimistic that it will become the biggest and strongest player in the tower industry to support the digital ecosystem in Indonesia," explained Teddy.