Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Digital business remained the engine growth supported by the focus on maintaining dominance in network supply |
| Entering the year of 2023, Telkom Group is very convinced that more prospective telecommunication business opportunities looming ahead |
| This, in the long run, going to provide, I think, competitive advantage and also some CapEx and OpEx saving |
| We also believe that with these initiatives, we can accelerate the growth in the second half of the years and also some other business, especially in the Enterprise and also in the Wholesale, for example, the tower data center can provide let's say, low-teen or double digits |
| But in terms of the mobile broadband as well as digital services, we see the strong growth supported by our wireless growth by 11% and it also contributes to the growth of the revenue of about 7% -- 7.1% |
| And as you can see in the current report on the quarter-on-quarter basis and also on a year-on-year basis, actually, we have some improvements in terms of the marketing and sales costs as well as from the cost of services, which also ties up with our strategy to have the better acquisition to our new customers as well as better offer to our existing customer base |
| And effectively, it also contributed to the improvement in our middle and bottom line |
| On the Wholesale & International business segment, it also experienced positive growth in the first quarter of 2023 by contributing IDR4 trillion in revenue or increased by 4.0% year-on-year |
| This achievement marked the successful strategic alignment of Enterprise segment business and hope to be in positive territory throughout the year |
| On the other hand, we have some good momentum in terms of the payload growth and also the payload per user growth as currently in average, our customers reach about 12 gigabytes, it's 12% compared to the previous year |
| IndiHome recorded positive growth in revenue and maintained its dominancy, contribution to the total consolidated Telkom's revenue has been steadily increased to IDR7.2 trillion or growing at 5% year-on-year |
| To maintain the sustainable growth, we are aiming the other income segment household within overall better services delivery across IndiHome's customers |
| The segment recorded positive performance with 7.1% year-on-year growth to IDR18.15 billion and increased its contribution to total revenue at 84.4% from 79.7% in the same period last year |
| Supported by healthy conduct in mobile segment competition, Telkomsel still experienced a healthy growth in revenue of 1.1% year-on-year with EBITDA margin maintained at 55.7% |
| Along with the economic recovery in Indonesia, Enterprise business segment also grew in positive correlation |
| The driver of Wholesale business revenue growth was driven by our growing international wholesale voice business and our digital infrastructure business |
| With the Five Bold Moves as our main strategy, we could continuously improve our competitive advantage in all aspects of the business |
| Following the acquisition of 997 towers from IOH, we expect Mitratel could strengthen its position as the largest tower provider in Southeast Asia in terms of total tower ownership of 36,439 towers |
| During the first quarter of 2023, Telkomsel maintained growth in revenue and reported net income with an increase of 2.5% year-on-year and 5.5% year-on-year, respectively |
| FMC initiative's execution is very strategic to maintain the competitiveness and advantage of the company in facing business competition in the Indonesian telecommunications sector and to improve the quality of services provided to the customers |
| It's much better |
| As of first quarter of 2023, Enterprise segment successfully grew by 7.8% year-on-year in revenue to IDR4.5 trillion due to growing enterprise connectivity business, digital solutions and satellite business |
| The figure along the time going to be improved that we believe |
| We are aware that in connectivity business, Telkom is the dominant player with two strong products in mobile, fixed wireless access and fixed broadband |
| Among these positive movements were the signing of CSA in FMC initiative, intensifying activities towards the development of InfraCo, and consolidating [Telin's] (ph) international data centre business to Telkom Data Ecosystem |
| And then on the fixed broadband and the churn level, yes, the churn level is increasing, but we managed to have the net effect positive and at a healthy level |
| But it's a level increase, because of the high competition, operator offer a very attractive pricing with a fairly cheap price with high speed |
| Market synergy, CapEx and OpEx efficiency in the thin-margin business are the key success factors to win the competition in B2C |
| Mitratel also expanded its portfolio in the fiber optic sector to strengthen the business ecosystem |
| In B2B business, namely the digital platform and digital business, Telkom therefore could concentrate all resources and capabilities to capture more market share in high growth and profitability in this segment |
| Statement |
|---|
| By implementing the InfraCo initiative, Telkom could position InfraCo as the solution to telco industry, which currently face industry headwinds such as growth saturation and declining profit as well as CapEx pressure |
| And then I think on the other cost, if you see high cost, I think in the bottom-line, you can see also in the ForEx loss, we experienced a ForEx loss around IDR50 billion |
| Actually, on the legacy, as you can see now, our contribution from legacy is still declining, but now it's around 15% |
| I know you mentioned legacy revenues as part of the drag on the mobile momentum |
| It's still declining by 22% on a year-on-year basis |
| Arthur Pineda Sorry, the line is really bad |
| But despite that, we are seeing that the revenue growth remained relatively low or relatively subdued |
| You mentioned that this has been impacting mobile revenue as well |
| My question is what is needed for the industry price increases and competitive rationality to better flow through into revenues? Do you think that the weak macro economy is weighing on the growth side? That's question number one |
| Firstly, in mobile, I'm just trying to understand what is leading to sequentially -- if we look at quarter-on-quarter decline in your mobile revenue, it's around 6% |
| Most of the business now going to the A2P, some in the more personal interconnection becoming less and the market is also becoming more competitive as some technology in the present also make, I think, the margin becoming a bit moderate as well |
| If you want to speak closer to the mic, it's just very difficult for us to follow |
| Actually, we're facing the very high competition in the big cities |
| All of the costs that are coming this year that are weaker compared to last year |
| And the problem seems to be more punctuated for you versus peers |
| So, we still see the potential declining of this until it stabilized at around 5% to 10% contribution of the revenue, which, in our case, maybe in the next 2 or 2.5 years ahead |
| On the fixed broadband, basically with penetration of fixed broadband in and around 14%, which is very low compared to most of incomparable [indiscernible] |
| This is -- it means the number of growth going to be moderating around the time |
| And have you seen the churn level increasing on that side? And where do you think that the new ARPU levels in the fixed broadband is settling down? And just a housekeeping question |
| They reduced the speed of broadband |
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