This is documentation when mitratel finaly reach their great milestone: IPO
Jakarta, 23 November 2022 – PT Dayamitra Telekomunikasi Tbk (MTEL) or “Mitratel”, a company engaged in providing digital and telecommunications infrastructure, has completed 1 (one) year of being listed on the Indonesia Stock Exchange. Mitratel continues to maintain growth and develop into the largest tower company (towerco) in the region that is adaptive to change.
Mitratel President Director Theodorus Ardi Hartoko or who is usually called Teddy said that the company had achieved four achievements within a year after listing its shares on the Indonesian Stock Exchange (IPO) on November 22, 2021. The first of them, Mitratel is now the largest independent telecommunications tower company in the country & Southeast Asia with 2896 public ownership shares which has the most complete services.
“Mitratel has prepared telecommunications infrastructure, including towers, connectivity (fiber and satellite) and power to tower spread throughout Indonesia to provide the most complete and integrated solutions for all telecommunications operators,” said Teddy in Jakarta, Wednesday (23/11/ 2022).
According to Teddy, globally the trend in the telecommunications tower business is shifting from Towerco to Digital Infraco in the future, to provide cellular services and grow the digital ecosystem.
In Indonesia, Towerco has moved to capture the growth potential of providing digital infrastructure, to encourage future business growth. Especially regarding the provision of fiber optic infrastructure to support cellular services (4G/5G) and digital ecosystems.
“Mitratel, as part of the Telkom Group, will always play a role in preparing a roadmap for Digital Infraco for portfolio development that focuses on providing fiber optic/tower fiberization infrastructure,” Teddy explained.
Second, the company is now the largest telecommunications tower provider company in Southeast Asia in terms of tower ownership, through various tower developments and corporate actions. “MTEL’s tenancy ratio of 1.44x and 5896 towers outside Java provide room for growth with the expansion of mobile operator services throughout Indonesia,” said Teddy.
As of the third quarter of 2022, Mitratel is recorded as having a total of 35,051 telecommunications towers, after the company successfully acquired 6,000 towers belonging to PT Telekomunikasi Selular (Telkomsel) some time ago.
Third, according to Teddy, Mitratel has low leverage and no exposure to foreign exchange rate risk. The company is quite resilient to macroeconomic exposure with a net-debt to EBITDA record of 1.7x, a domestic content level (TKDN) of 100% and all debt in rupiah.
“Fourth, MTEL is also a leading company in the industry with a very good level of investment,” said Teddy. Teddy explained that MTEL had achieved a very good investment grade rating from PEFINDO, namely an IdAAA rating with a stable outlook. MTEL shares are also included in the FTSE Global Equity IDX80, Kompas 100, IDX ESG Leaders and ISSI Index lists.
In the January – September 2022 period, MTEL managed to record revenue that rose 11.5% on an annual basis to IDR 5.6 trillion compared to the same period last year of IDR 5.02 trillion. The increase in revenue increased the company’s net profit 18.1% to IDR 1.22 trillion compared to the previous IDR 1.03 trillion.
Teddy stated that the company’s consistent growth succeeded in recording EBITDA (earnings before interest, taxes, depreciation) increasing to 15.7%. “EBITDA is expected to increase as colocation increases, especially due to the extensive tower coverage outside Java,” said Teddy.
According to Teddy, the company’s business growth in the first – third quarter of 2022 was recorded to consistently be greater than industry growth. This is what makes Mitratel’s profitability increase more significantly compared to last year.
Performance Continues to Grow
Meanwhile, PT Mirae Asset Sekuritas Indonesia Senior Investment Information Nafan Aji projects that Mitratel’s performance will continue to grow. Nafan said that the growth of the Telkom subsidiary was starting to show results after almost a year of being listed on the Indonesia Stock Exchange (BEI) on Wednesday (23/11/2022).
“MTEL is still experiencing bearish consolidation in the short term. MTEL has support at IDR 680 per share and resistance at IDR 740. This is technical analysis. Bullish consolidation will take effect if MTEL consistently stays above IDR 705. Currently it is at IDR 710,” said Nafan.
Even so, Nafan believes that Mitratel’s trend will continue to increase until the end of the year. This cannot be separated from a few Mitratel business expansions in the tower sector. He said that Mitratel’s improved performance was also supported by Indonesia’s impressive economic growth with relatively solid domestic macroeconomic fundamentals.
“This could be a catalyst for improving Mitratel’s top line and bottom-line fundamental performance,” he continued.
Nafan said positive economic growth encouraged an increase in the need for internet connectivity services. Not only that, continued Nafan, Mitratel’s actions in supporting fiber optic development will also further improve the company’s performance in the future.
“Demand for connectivity in the future will definitely increase with increasingly rapid technological development, even though the fundamental performance is still at odds with the performance of share prices, technically it is better if it is consistently above IDR 750,” said Nafan.
