The Tower Company Of The Djarum Group Owned By The Konglomerat Hartono Brothers Profit Raup Rp1.69 Trillion In Semester I 2022

Illustration. (Photo: Pixabay)

JAKARTA - The tower company from the Djarum Group owned by the Hartono Brothers conglomerate, PT Sarana Menara Nusantara Tbk (TOWR) earned a slight increase in profit in the first half of 2022 to IDR 1.69 trillion.

In TOWR's financial report, quoted on Monday 5 September, the revenue of the issuer coded TOWR rose 33.85 percent year-on-year (YoY) to IDR 5.31 trillion from IDR 3.97 trillion in the first semester of 2021. This income was sourced from third-party revenues of IDR 5.24 trillion, which was divided into the rental income of IDR 4.8 trillion and service and other income of IDR 366 billion.

Based on its customers, TOWR received the largest revenue from PT XL Axiata Tbk (EXCL) of IDR 1.56 trillion, PT Hutchison 3 Indonesia of IDR 1.14 trillion, PT Indosat Tbk (ISAT) of IDR 890 billion, and PT Telekomunikasi Selular of IDR 793 billion.

At the same time, TOWR's cost of revenue also rose 33.17 percent YoY in the first semester of 2022 to IDR 1.4 trillion. In addition, TOWR's financial costs in the first half of 2022 jumped from IDR 522 billion to IDR 1.2 trillion.

As a result, profit for the year attributable to owners of the TOWR parent entity was only able to grow 0.08 percent from IDR 1.68 trillion in the first semester of 2021 to IDR 1.69 trillion in the first semester of 2022.

TOWR management explained that the company has 29,263 towers and 54,716 tenants as of the end of the second quarter of 2022. Meanwhile, TOWR's tenancy ratio is recorded at 1.87 times.

"Long-term contracts and underwrite commitments of more than IDR 65 trillion are future revenue commitments until 2038, not including the value of potential contract renewals", explained TOWR management.

As of June 30, 2022, TOWR recorded total assets of IDR 63.3 trillion, down from December 31, 2021, which was IDR 65.8 trillion.

The company's total liabilities decreased from IDR 53.7 trillion at the end of 2021 to IDR 50.4 trillion at the end of June 2022. Meanwhile, the company's total equity increased from IDR 12.06 trillion to IDR 12.9 trillion in the same period.

Until the end of June 2022, TOWR pocketed net cash from operating activities of IDR 5.34 trillion.