TLKM - FMC to improve efficiency, management says

Management of Telekomunikasi Indonesia (TLKM) believes that planned consolidation of its mobile arm, Telekomsel and fixed broadband service, Indihome will be able to improve efficiency and profitability. They expect the convergence of both entities will result in +IDR6 tn EBITDA per year by 2027 onwards. Meanwhile, opex and capex that targeted to be saved per year are ranging from IDR1.6 - IDR1.9 tn and IDR300 - IDR400 bn, respectively. (Source : Kontan) Comment : Consolidation of Telkomsel and Indihome is expected to materialize in July ‘23. In our view, the convergence will not only allow TLKM to improve efficiency but also strengthen its competitive edge given its leadership in both mobile and fixed broadband segments.