TLKM recorded revenue growth of 1.27% YoY in 2Q24, primarily driven by significant increases in the data, internet, and IT services segment (+7.17% YoY).

The performance of the IndiHome segment experienced a sharp decline of -15.12% YoY, weighing down the company’s total revenue.

Early Retirement Program (ERP) and investment in GOTO contributed to a decline in EBITDA by -4.86% YoY and a reduction in net profit by -9.85% YoY.

Telkomsel Lite saw subscriber growth of +4.30% YoY, despite a decline in ARPU due to targeting the low-cost market segment.

Telkom introduced EZNet with competitive pricing in the fixed broadband market, expected to increase the number of subscribers but potentially pressuring ARPU and yield.

We maintain our BUY recommendation for TLKM with a lower target price of IDR3,440 per share, reflecting a potential upside of 15.40%. This valuation is based on DCF with terminal growth of 2%. This upside potential implies a PER and EV/EBITDA valuation of 14.56x and 4.80x, respectively, for FY24F.

By PHINTRACO SEKURITAS | Research
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