Telkom's Subsidiary, Mitratel Focuses On Asset Monetization By Increasing Tenancy Ratio

Illustration of share transactions (Photo: Doc. Antara)

JAKARTA - A subsidiary of PT Telkom Indonesia (Persero), PT Dayamitra Telekomunikasi Tbk or Mitratel (MTEL) is ready to focus on monetizing (cashing) assets by increasing the tenancy ratio.

Main Director of Mitratel Theodorus Ardi Hartoko or usually called Teddy said Mitratel's focus is now starting to move to increase fundamentals through asset monetization.

"We believe that the company's value will increase rapidly in 2023, which is supported by good financial performance. Mitratel is optimistic that with strong market dominance, the steps we are taking to expand our business organically and non-organically will have an impact on our financial performance this year," Teddy said as quoted by Antara on Tuesday, February 14.

Mitratel as an Independent Tower Provider will continue to aggressively monetize its assets through orders from all Mobile Network Operators (MNOs) as the MNO network expands, including outside Java.

An increase in demand for collocation from MNO will certainly have an impact on the growth of the Tenancy Ratio which in turn increases the company's profitability.

The tenancy ratio is the total number of tenancies owned by a telecommunication tower company or MNO on its towers divided by the total number of towers.

This Telkom subsidiary continues to carry out various corporate actions to encourage positive performance achievements in 2023.

The various corporate actions undertaken by Mitratel both organically and non-organically in the previous years, succeeded in making Mitratel the largest tower owner in Southeast Asia and was dubbed the King of Towers with a total tower ownership of more than 35,000.

Despite being a tower company with the largest number, Mitratel's tenancy ratio is still lagging behind its competitors. However, currently, Mitratel has managed to record an EBITDA Margin that is on par with its competitors.

Thus, in the short to medium term, Mitratel's performance is expected to be able to surpass its competitors.

"After Mitratel became the owner of the most towers in Southeast Asia, we will continue to strive to maintain the company's fundamentals by having a good and solid performance, and growing above the industry average," said Teddy.

According to him, there are still many business opportunities that can be run and certainly have the potential to provide benefits, so that this business can grow sustainably.

"We will focus on providing end-to-end solutions for our customers where, as an example currently, Mitratel has prepared Fiber-to-the-Tower (FTTT), Energy-as-a-Service (EaaS), and satellite-based services. "This is difficult to replicate by other competitors," he said.

Teddy believes that the telecommunications infrastructure business will continue to grow and develop and is promising for investors.

Investors can view and consider statistics related to this tower business at Mitratel, such as a large number of towers, revenue growth, and significant profit levels, so they can make the right decision when making an investment.

"It's not difficult to imagine Mitratel's market capitalization growth in the future, where currently there are 30 companies with the largest market capitalization, our ambition is to get into the top 20 or even the top 10," said Teddy.