Mitratel Third Quarter Revenue Grows 11.9%, Net Profit Soars 16.6%
Mitratel Records Increase in Revenue and Net Profit in Quarter III-2023 of 36.62 Billion.
JAKARTA – PT Dayamitra Telekomunikasi Tbk. or Mitratel (MTEL)’s strategy to continue expansion and manage costs more efficiently, including through digitalization of business processes, has produced positive results. This is reflected in the company’s performance achievements in the third quarter of 2023 which was published today (30/10). Revenue grew rapidly, resulting in increased EBITDA and increased net profit.
Mitratel posted an 11.9% increase in revenue from IDR 5.6 trillion in the first nine months of 2022 to IDR 6.3 trillion in the first nine months of 2023 (yoy). This gain was driven by an increase in the number of towers and optical fibers, both organic and inorganic, along with an increase in the number of tenants and collocations.
“Since before the initial public offering (IPO) until today, we have continued to increase the number of towers and fiber optic, especially outside Java. Now, we are enjoying the results in the form of growth in the number of tenants and elevated revenue. Our forthcoming challenge is how to increase asset productivity as reflected in the increased tenancy ratio, and operational efficiency including through digitalization so that it has a positive impact on increasing margins,” said Theodorus Ardi Hartoko or Teddy, President Director of MTEL. The growth in tower ownership was successfully offset by an increase in the number of tenants by 10.5% to 55,704 tenants from 50,390 tenants (yoy). Meanwhile, the number of collocations jumped 21.3% to 18,613 from 15,339 collocations (yoy). Throughout this year, Mitratel also succeeded in extending fiber optics to 29,042 Km.
“We believe that the future business landscape of the telecommunications industry will be marked by the divestment of towers and fiber optic owned by the MNO industry. Telecommunication operators do this because they want to focus more on product innovation that provides added value and fulfills consumer needs. “This change is certainly an opportunity for Mitratel to become a strategic partner and grow with them,” said Teddy.
In the first nine months of 2023, Mitratel built 481 new towers and added 1,192 towers through acquisitions, so that the number of towers under the ownership of MTEL by the end of September 2023 reached 37,091 towers. This achievement makes Mitratel the TowerCo with the largest number of towers in Southeast Asia.
Mitratel’s tower distribution includes 15,505 towers in Java and 21,586 towers outside Java or around 58% of the total towers. This encouraged the growth of additional tenants outside Java by 11%, higher than in Java which was 10%. “This shows that the company’s strategy to expand and optimize growth outside Java is in line with the expansion strategy of cellular operators in Indonesia,” he said.
Apart from expansion in tower and fiber optic infrastructure as well as a focus on increasing asset productivity, the company also seeks to optimize digital technology in business processes. This enables the company to provide services that are relevant to customer needs, thereby providing higher added value. “We continue to increase digital adoption so that service to our partners becomes more precise, more effective and much more efficient,” he said.
These various enhancements contributed to an increase in EBITDA margin from 78.5% in September 2022 to 80.6% in September 2023. From total revenue of IDR 6.3 trillion, the company managed to record a net profit of IDR 1.43 trillion. This net profit jumped 16.6% from the same period last year.
**
You can see Mitratel’s Portfolio on this page:
https://www.mitratel.co.id/portfolio-en/
