Jakarta, Wednesday, May 3, 2023 – PT Dayamitra Telekomunikasi Tbk (MTEL) or Mitratel in Q1-2023 logged a net profit of IDR 501 billion with a growth by 9.1% from IDR 459 billion in the same period in 2022. This company’s net profit was supported by revenue which rose 9.9% to IDR 2.06 trillion from IDR 1.87 trillion (yoy).
Mitratel President Director, Theodorus Ardi Hartoko, said that revenue from telecommunications tower leasing was the main factor for the company’s growth in the first quarter of 2023. “The biggest revenue contribution came from Tower Leasing segment revenue which recorded IDR 1.73 trillion or grew by 18.8% compared to the first quarter of 2022. This revenue growth was driven by additional tenancies and collocations, including the acquisition of the Indosat tower in the first quarter of this year,” said Teddy, Theodorus’ nickname in Jakarta on Wednesday (5/3/2023).
Apart from the Tower Leasing segment, Mitratel’s other contributions from the Reseller segment IDR 154 billion, Fiber IDR 34 billion, and Tower-Related Business IDR 128 billion. Mitratel’s fundamental performance in the first quarter of this year demonstrated growth in line with the intensified asset monetization program from organic and inorganic corporate actions that assigned in 2022. “This year, we will sustainably grow our business through continuous organic and inorganic business expansion,” stated Teddy.
In 2022, Mitratel initiated the acquisition of telecommunications towers and fiber optic. The positive impact of the tower acquisition is the upsurge in Tower Leasing revenue and new revenue attainment from fiber optics. In first quarter, Mitratel recorded revenue IDR 34 billion from the fiber segment, compared to zero revenue from this segment during the same period last year. Mitratel succeeded in documenting rapid development in its fiber portfolio until March 2023. The key to the growth of this new portfolio was driven by strategic partnerships that accelerated the go-to market, getting orders from mobile operators. Additionally, the company pursued inorganic corporate action by acquiring 6,012 km of fiber assets. As a result, by the end of March 2023, Mitratel has a total of 25,509 km of fiber optic cable assets.
Mitratel is also working on the Power to The Tower business. Teddy stated that the Power to The Tower business model is the provision of on grid (connected to the central energy source) and off grid (network that not connected to PLN electricity) energy sources at telecommunications tower sites.
The company anticipates the market for the Power to The Tower business to grow until 2026 with a compound annual growth rate (CAGR) of 6%. “Mitratel perceives this as an opportunity to establish a more comprehensive tower rental ecosystem and takes the initiative to become a major player in this business,” said Teddy.
Meanwhile, Mitratel’s EBITDA in the first three months of this year was able to grow 16.2% (yoy), supported by discipline in managing operating costs.
Teddy projects Mitratel’s revenue by the end of 2023 to grow by 11% compared to revenue in 2022 of IDR 7.73 trillion. “Mitratel implements diverse marketing strategies to respond to the changes and meet consumer demand. Some of these strategies include forming a marketing team equipped with analytical tools to make it easier for consumers, telecommunications operators, to lease a tower that aligns with their business plans and expansion in Java Island and outside Java Island,” said Teddy.
Mitratel in the first quarter of 2023 had 36,439 towers distributed throughout Indonesia. In this first quarter, Mitratel has built 105 new towers and acquired 997 towers. Mitratel is registered as the largest tower provider in Southeast Asia in terms of tower ownership.
Mitratel owns 15,278 towers in Java and 21,161 towers outside Java or around 58% of the total towers. “Growth of addition tenants outside Java was 25.3%, higher than in Java to 21.9%. This shows Mitratel’s strategy for expansion and optimization growth outside Java in accordance with the expansion strategy of mobile operators in Indonesia,” said Teddy. Currently, Mitratel has 36,459 towers which makes Mitratel the independent and largest digital infrastructure company (Digital InfraCo) in Southeast Asia, ranking 12th place globally.
Meanwhile, Mitratel’s assets rise of 2.40% or to IDR 57.42 trillion from IDR 56.07 trillion at the end of 2022. This increase was backed by non-current assets which rose 4.02%, to IDR 50.12 trillion from IDR 48.18 trillion. Meanwhile, current assets changes value became IDR 7.29 trillion from IDR 7.88 trillion.
Mitratel has prepared several business strategies that include operations excellence, service excellence, creating business value, creating shared value, digitalization based on analytical tools, and cultivation of human resource competency. Teddy said that Mitratel business to ensure maximum value for all shareholders.
