Net Profit Increases 15 Percent, Mitratel Earns IDR 1.02 Trillion In Semester I-2023

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA - PT Dayamitra Telekomunikasi Tbk or Mitratel (MTEL) earned a net profit of IDR 1.02 trillion in the first semester of 2023. This achievement grew 15 percent on an annual basis or year on year (yoy) compared to the same period last year of IDR 891.54 billion.

Mitratel Investment Director Hendra Purnama said Mitratel's main revenue contributor in the first half of this year was tower rental which reached Rp3.45 trillion or 83.6 percent of the company's total revenue.

Hendra believes that in the tower business, the control of the number of towers is very important because it has an impact on stable and sustainable business growth.

"This is the reason why we have been aggressive in increasing the number of towers in recent years. The impact will continue to grow stably," Hendra said, quoting Antara.

Based on the first semester of 2023 financial report published today, Mitratel's revenue grew 11 percent (yoy) to Rp4.13 trillion compared to the same period the previous year of Rp3.73 trillion.

Mitratel has the most towers in Indonesia with 36,719 towers. In line with the number of towers, Mitratel also has the most tower tenants with 54,718 tenants.

Mitratel's next revenue was contributed by the reseller business, namely the tower rental which Mitratel does not have. The business contributed revenue of IDR 309 billion, down 8.8 percent because some tenants from resellers decided to rent the tower owned by Mitratel directly. This means that the income earned by the issuer coded MTEL shares will certainly be bigger because of the transfer.

Next is revenue generated by business units related to towers, such as services for providing electricity to towers or power to the towers. The business unit generates revenue of IDR 282 billion to Mitratel in six months.

Throughout 2023, Mitratel has built 304 new towers and acquired 997 towers belonging to Indosat. When withdrawn to the last five years, Mitratel has acquired 21,000 towers.

The location of Mitratel's telecommunication towers is 15,354 in Java and 21,365 towers are outside Java or about 58 percent of the total tower. In terms of tenancy, the additional tenants outside Java are 26 percent, higher than in Java which is 22 percent.

Not only in the tower, Mitratel is also aggressive in acquiring and building an optical fiber network. Mitratel currently has 27,269 km of fiber optics, of which 6,012 km come from acquisitions at the end of 2022.

As a capital expenditure-intensive business, Mitratel's profitability is quite good with EBITDA reaching IDR 3.35 trillion in the first semester of 2023, an increase of 16.1 percent (yoy). The EBITDA Margin ratio improved to 81.2 percent compared to 77.5 percent in the previous year.

Not only EBITDA Margin, but Mitratel's other profitability ratio also increased, namely Return on Assets (ROA) 3.6 percent from the previous 3.2 percent and Return on Equity reached 6.2 percent from the previous 5.3 percent.

Mitratel at the end of June 2023 posted an increase in assets of 1.3 percent to IDR 56.79 trillion and a total equity of IDR 33.06 trillion. Debt to Equity Ratio (DER) is recorded at 0.47x which reflects a healthy debt ratio.

Referring to the company's cash flow report as of the end of June 2023, Mitratel has spent nearly IDR 3 trillion for investment in the form of acquisition and tower construction. This means that the costs incurred by Mitratel to get 1,301 towers throughout 2023 are equivalent to almost IDR 2 billion per tower.

Mitratel has budgeted capital expenditure (capex) of IDR 7 trillion for 2023. If the funds absorbed for investment and capital expenditures are almost IDR 3 trillion (43 percent of realization), then by the end of the year, the company still has room of IDR 4 trillion.