TOWR recorded a net profit of Rp 1.6 trillion in 1H24, an increase of 9.4%
News · Monday, 30 September 2024 08:30
Source: Company, Jakarta 30 September 2024
Today, Sarana Menara Nusantara Tbk reported the Company’s achievements for 2Q24 that have been audited.
|
(in Rp billion, unless stated otherwise)* |
1H2023 |
1H2024 |
yoy |
|
Revenue |
5,776.3 |
6,153.9 |
6.5% |
|
EBITDA |
4,914.1 |
5,133.2 |
4.5% |
|
EBITDA margin |
85.1% |
83.4% |
|
|
Net profit attributable to parent |
1,467.2 |
1,605.1 |
9.4% |
|
Net profit margin |
25.4% |
26.1% |
|
|
|
|||
|
Total tower |
29,792 |
31,502 |
5.7% |
|
Total tenant |
53,771 |
54,326 |
1.0% |
|
Tenancy ratio (x) |
1.80 x |
1.72 x |
|
|
|
|||
|
Total Fiber (km) (including FTTT, FTTH, backbone, subsea) |
~120,000 |
~140,000 |
16.6% |
|
FTTT physical fiber (km) (part of Total Fiber) (a) |
95,596 |
101,395 |
6.1% |
|
FTTT revenue generating km (b) |
172,593 |
192,332 |
11.4% |
|
FTTT utilisation ratio (a divided by b) |
181% |
190% |
|
|
|
|
|
|
|
FTTH homes passed |
464,831 |
1,211,626 |
160.7% |
|
FTTH home connect |
38,267 |
135,897 |
255.1% |
|
Connectivity Activations |
11,877 |
14,409 |
21.3% |
* This review of TOWR does not include IBST, which will be consolidated starting from 3Q24.
2Q24 Performance Review
The 2Q24 performance results from the tower segment show the impact of the relocation stages of tower lease contracts following the merger of Indosat and Hutchison. This process requires capital expenditure with long-term investment returns. Management estimates that the heaviest impact of this relocation process will be reflected in the 2024 financial performance, and the entire process will be completed within the next 1-2 years.
In addition, a few months ago, there was a public announcement that XL Axiata is exploring a merger with SmartFren. The process toward this merger may further impact the organic growth of infrastructure usage.
The number of towers as of 2Q24 reached 31,502 and tenants numbered 54,326 with a tenancy ratio of 1.72x. On the other hand, business growth from the non-tower segment still shows impressive growth. Contribution to consolidated revenue from this segment in 2Q24 reached 34%, up from 32% in 1Q24. Revenue growth is quite good, as seen from FTTT, Connectivity, and FTTH which grew yoy by 18.6%, 11.3%, and >400% respectively. The largest contributor from the non-tower segment is fiber leasing, with total assets growing 16.6% yoy, reaching approximately 140,000 km. Fiber utilization in FTTT also increased to 190%, excluding fiber utilization resulting from synergies between fiber businesses within the SMN Group.
Consolidated TOWR revenue, EBITDA, and net profit grew yoy by 6.5%, 4.5%, and 9.4% respectively.
Mr. Aming Santoso, President Director and CEO of SMN, stated, 'In the first semester of 2024, SMN managed to book a net profit increase of 9.4% yoy in the midst of the significant impact of the IOH lease point relocation which required significant capital expenditure during high-interest rate period. As we know, lower interest rate policies from the Fed and Bank Indonesia only started to take effect at end of third quarter of this year.
Our strategy remains focused on healthy growth from the infrastructure needed by the industry and other markets requiring internet through our Connectivity and FTTH. Synergy is very important to be implemented and maintained between our tower and non-tower portfolios. We always review operational cost efficiency, capital expenditure, and interest costs. These things seem to be bearing fruit in TOWR's financial performance this quarter.'
TOWR's 2Q24 performance results have not yet consolidated IBST, which will only be consolidated in 3Q24. The 2Q24 IBST report was conducted separately and audited to align accounting policies and ensure the assumptions used in TOWR's acquisition.
Contact: adam.gifari@protelindo.net (Advisor - Group Investor Relations)