TBIG 2015

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.