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Communication infrastructure firm Mitratel’s revenue increases by 11.9% in Q3
MTEL revenue increased by 11.9 percent on an annual basis in the third quarter of the year to Rp 6.3 trillion ($395 million).
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This aerial photo shows a worker checking a base transceiver station (BTS) tower in Kutai Kartanegara regency, East Kalimantan on June 8, 2023. (Antara/Fakhri Hermansyah)
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T Dayamitra Telekomunikasi or Mitratel, a communication infrastructure provider under state-owned telecommunications company Telkom Indonesia, has recorded year-on-year revenue growth of 11.9 percent, from Rp 5.6 trillion (US$ 351 million) to Rp 6.3 trillion, in the third quarter.
Mitratel posted a net profit of 16.6 percent, equal to Rp 1.43 trillion during that period. Its earnings before interest, taxes, depreciation and amortization (EBITDA) margin also increased to 80.6 percent in September from 78.5 percent a year ago.
One of Mitratel’s strategies is to increase the number of towers and expand its fiber optic network. It built 481 new towers in addition to 1,192 towers through acquisition, with a total of 37,091 towers by the end of September 2023.
The towers are spread throughout Java, as well as outside of Java, with a total of 15,505 and 21,586 towers, respectively. As a result, Mitratel has the most towers in Southeast Asia. Mitratel has also expanded its fiber optic network to 29,042 kilometers.
“We believe the telecommunication business landscape in the future will be marked by divestment in towers and fiber optics belonging to MNOs [mobile network operators],” said Theodorus “Teddy” Ardi Hartoko, the president director of Mitratel.
“Telecommunication operators have done this because they are more focused on product innovation that provides added value and fulfills consumer needs. This change obviously is a chance for Mitratel to be a strategic partner and grow together with them.”
The increased tower ownership has aligned with 10.5 percent customer growth, from 50,390 to 55,704 tenants. Meanwhile, collocations rose by 21.3 percent from 15,339 to 18,613.
“Our next challenge is how to improve asset productivity, which is seen in the increasing tenancy and efficiency ratio through digitalization, which affects margins positively,” said Teddy.
Trading as MTEL on the Indonesia Stock Exchange, the company’s shares closed at Rp 620 on Monday, down 2.36 percent.
