Investment Loss in GOTO weighs on Telkom

- Jumat, 31 Maret 2023 | 09:19 WIB
Investment Loss in GOTO weighs on Telkom (Net)
Investment Loss in GOTO weighs on Telkom (Net)

DEPOK (eNBe Indonesia) - State-owned telco firm Telekomunikasi Indonesia (TLKM), or Telkom, booked profit attributable to owners of Rp20.7 trillion in 2022, declined 16.2% year on year (y/y), as the Company recorded Rp6.44 trillion unrealized loss on changes in fair value of investments.

TLKM’s revenues increased 2.8% y/y to Rp147.3 trillion. Cellular data and internet contributed Rp69 trillion, up 7.8% y/y.

Indihome contributed Rp28 trillion, up 7.7% y/y. Telephone contributed Rp13.6 trillion, declined 18.7% y/y. Interconnection contributed Rp8.47 trillion, grew 8.8% y/y.

Despite the increase in revenue, TLKM’s operating profit fell 17% y/y to Rp39.58 trillion in 2022, due to unrealized losses from changes in the fair value of investment.

Telkom explained, the amount of unrealized losses from changes in the fair value of Telkomsel’s investment in GoTo Gojek Tokopedia (GOTO) amounted to Rp6.74 trillion, much higher than Rp1.54 trillion recorded by Astra International (ASII).

Telkom’s SVP Corporate Communication & Investor Relations Ahmad Reza explained that the investments made by the Telkom Group through Telkomsel from the start have been more focused on long-term business development and value synergy potential. This means that investment is not solely based on potential capital gains.

“Along with GoTo which has now become a public company through last year’s IPO, it is normal for the stock value to fluctuate, which will follow market developments,” said Reza as quoted by

Thus, Reza assesses the impact of stock price movements only in the short term. He said GOTO shares still have the opportunity to grow in accordance with their consistency in business development, especially in the digital sector in the long term.

Still, some wonder what TLKM will do on GOTO shares ahead of next year’s general election, especially if Erick Thohir, minister of state-owned enterprises, will compete in the presidential/vice presidential race.

GOTO is now traded around Rp113, crashed from peak at Rp442, to make a market capitalization of Rp133.8 trillion. TLKM, meanwhile, is now worth Rp402 trillion, nearly three times equity, and traded with PE multiple nearly 20 on 2022 earnings.

Telkom’s cash flow balance improved in 2022. It generated net cash of Rp73.3 trillion last year, higher than Rp68.3 trillion it generated in 2021.

Telkom also maintained its investment, using net cash of Rp39.2 trillion for investing activities last year, compared to the Rp37.7 trillion it spent in 2021.

It paid cash dividend of Rp10.1 trillion in 2022, lower than Rp13.2 trillion it paid a year earlier. Its cash and cash equivalent reached Rp31.9 trillion by the end of December 2022.

Meanwhile Telkom will streamline its structure by reducing 20 units. It will merge or consolidate units with overlapping business scope and inefficiencies.

This restructuring is in line with Telkom’s transformation into digital telco. Telkom merged all the group’ towers under the unit, PT Dayamitra Telekomunikasi (MTEL) or (Mitratel), and it has launched the initial public offering (IPO) for Mitratel.

Telkom also has 26 data centers which contributed more than Rp1.1 trillion in revenue. Telkom intends to consolidate its data center business within 2-3 years.

Telkom targets to conclude the merger of Indihome and Telkomsel by early this year. The Company was preparing the operation model after said merger. Consumers segment will be served by Telkomsel with mixed penetration of fixed and mobile technology.***

Editor: Adrianus Nulangi Madaala



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