Telekomunikasi Indonesia (better known as Telkom) is Indonesia's largest telecommunication and network provider as well as one of the largest companies in Indonesia in terms of market capitalization. The company, majority owned by the Indonesian government, has a dominating market share of between 45 and 50 percent in terms of mobile phone subscribers in Indonesia. It is the parent company of the Telkom Group, which is engaged in a range of businesses that include telecommunication, multimedia, property and financial services.
With both smartphone and Internet penetration at relatively lower levels in Indonesia (about 29 percent of the total population has access to Internet), market leader Telkom is well positioned to target further growth.
Telkom’s shares are traded on the Indonesia Stock Exchange (IDX), the New York Stock Exchange (NYSE), the London Stock Exchange (LSE) and publicly offered without listing in Japan (POWL). However, per 5 June 2014, Telkom withdraws from the London Stock Exchange due to the small proceeds obtained in combination with the high listing fee.
Telkom posted an 5 percent growth in net profit (year-on-year) to IDR 3.7 trillion (USD $322 million) in the first quarter of 2014 on the back of strong revenue streams from data services. Its revenue increased 8.7 percent to IDR 21.3 trillion (USD $1.9 billion) over the same period.
The graph below shows a steep decline as Telkom conducted a stock split with a ratio of 1:5 in August 2013. This measure was taken to increase the company’s share liquidity.
Telkom's Financial Highlights:
|Income per share¹||115.9||117.3||111.9||133.8||147.4|
|Dividend per share¹||288.06||322.59||371.34||436.18|
in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: Telekomunikasi Indonesia, Annual Report 2013
Future Projection Financial Performance Telkom Indonesia:
|P/E Ratio (x)||17.4||15.7||14.2||13.0||11.4|
in trillion IDR rupiah, except stated otherwise
Source: Telekomunikasi Indonesia, Annual Report 2012 & Investor Daily