Company analysis
The company was founded in 2004,
it operates in infrastructure sector.
The company build telecommunication tower and lease the tower for Telecommunication
Company such as Telkom, Indosat, XL Axiata,Hutchison 3 Indonesia and etc.
The shareholders in 2015
comprised 30.08% wahana anugerah sejahtera, the remains were provident capital
indonesia and public.
The company is a part of Saratoga
group which is owned by Soeryadjaya family. The group runs its business in
consumer, infrastructure, and mining and energy sectors. Based on its annual report in 2015, the
company owns 11,389 tower sites, 936 shelter only sites and 64 DAS network.
In 2011, the company acquired PT
Mitrayasa Sarana Informasi (infratel) to strengthen its position in telecommunication
tower market in indonesia.
The company implemented such strategies
in advancing its performance, those comprise maximize co-location; build to
suit strategy for each towers or sites and agreement restructure.
The company was able to increase
sales 3.5 % up in 2015 in comparison with sales in 2014. 40 % of total revenue
was derived from telkomsel in 2015. The second biggest contributor is indosat,
its contribution was 25 % of total sales in 2015.
Revenue from smartfren telecom
and indosat experienced significant increase with 13 % growth. In 2015, the
company could improve its gross margin from 84.7 % in 2014 to 87 % in 2015.in
addition; the company could improve its net profit margin from 22.4 % in 2014
to 42.2 % in 2015. As the result of that, the company increased its ROE from
35.7 % in 2014 to more than 94 % in 2015.
In 2015 the company was
restructuring its master lease agreement with its clients, the cost of
electricity was charged to operator, as the result of that cost of sales
decreased significantly and gross profit margin was improved.
The company is having strong
bargaining power to its client or buyer such as Telkom and indosat. As long as
smartphone penetration is still high, the subscribers would continue to grow in
the future. And business of telecommunication tower will be in line with growth
of subscribers.
