32. OPERATING SEGMENT
In 2017, management rearranged the Group's business portfolios from a customer-centric approach to a Customer Facing Unit ("CFU") approach that allow the Group to focus on more specific customer markets. This was followed by a change in the Group's organizational structure to accommodate decision making and assessing performance based on the CFU approach. The change in the way of managing the Company's business portfolios and the change in the Company's organizational structure led the Board of Directors, as the Company's CODM, to change the presentation of the Group's segment information previously presented in the consolidated financial statements for the years ended December 31, 2016. Accordingly, the segment financial information in the consolidated financial statements for the years ended December 31, 2015 and December 31, 2016 were restated to conform with the presentation of segment information in the consolidated financial statements for the years ended December 31, 2017.
The Group has four primary reportable segments, namely mobile, consumer, enterprise, and WIB. The mobile segment provides mobile voice, SMS, value added services and mobile broadband. The consumer segment provides fixed wireline telecommunications services, pay TV, data, internet and other telecommunication services to home customers. The enterprise segment provides end-to-end solution to corporate and institutions. The WIB segment provides interconnection services, leased lines, satellite, VSAT, broadband access, information technology services, data and internet services to Other Licensed Operator companies and institutions. Other segment represents Digital Service Operating Segment that does not meet the disclosure requirements for a reportable segment. No Operating Segments have been aggregated to form the reportable segments.
Management monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured on the basis of Indonesian Financial Accounting Standards which differ from IFRS primarily in the accounting for land rights. However, the financing activities and income taxes are managed on a group basis and not separately monitored and allocated to operating segments.
Segment revenues and expenses include transactions between operating segments and are accounted at prices that management believes represent market prices.
|
|
|
2015 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Adjustments & |
|
Total |
|
|
|
Mobile |
|
Consumer |
|
Enterprise |
|
WIB |
|
Others |
|
Segment |
|
eliminations |
|
consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
|
71,203 |
|
8,936 |
|
16,818 |
|
5,603 |
|
122 |
|
102,682 |
|
(212) |
|
102,470 |
|
Inter-segment revenues |
|
4,847 |
|
2,319 |
|
4,276 |
|
11,270 |
|
— |
|
22,712 |
|
(22,712) |
|
— |
|
Total segment revenues |
|
76,050 |
|
11,255 |
|
21,094 |
|
16,873 |
|
122 |
|
125,394 |
|
(22,924) |
|
102,470 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
|
(36,461) |
|
(9,988) |
|
(14,398) |
|
(8,957) |
|
(243) |
|
(70,047) |
|
(54) |
|
(70,101) |
|
Inter-segment expenses |
|
(10,483) |
|
(2,910) |
|
(4,633) |
|
(4,991) |
|
(0) |
|
(23,017) |
|
23,017 |
|
— |
|
Total segment expenses |
|
(46,944) |
|
(12,898) |
|
(19,031) |
|
(13,948) |
|
(243) |
|
(93,064) |
|
22,963 |
|
(70,101) |
|
Segment results |
|
29,106 |
|
(1,643) |
|
2,063 |
|
2,925 |
|
(121) |
|
32,330 |
|
39 |
|
32,369 |
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(11,564) |
|
(7,604) |
|
(3,061) |
|
(3,982) |
|
— |
|
(26,211) |
|
(190) |
|
(26,401) |
|
Depreciation and amortization |
|
(12,978) |
|
(2,500) |
|
(1,296) |
|
(1,893) |
|
(13) |
|
(18,680) |
|
108 |
|
(18,572) |
|
Provision recognized in current period |
|
(136) |
|
(226) |
|
(611) |
|
(33) |
|
— |
|
(1,006) |
|
(4) |
|
(1,010) |
|
|
|
2016 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Adjustments & |
|
Total |
|
|
|
Mobile |
|
Consumer |
|
Enterprise |
|
WIB |
|
Others |
|
Segment |
|
eliminations |
|
consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
|
83,998 |
|
10,410 |
|
15,816 |
|
5,866 |
|
19 |
|
116,109 |
|
224 |
|
116,333 |
|
Inter-segment revenues |
|
2,724 |
|
1,877 |
|
12,877 |
|
14,451 |
|
209 |
|
32,138 |
|
(32,138) |
|
— |
|
Total segment revenues |
|
86,722 |
|
12,287 |
|
28,693 |
|
20,317 |
|
228 |
|
148,247 |
|
(31,914) |
|
116,333 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
|
(37,814) |
|
(11,024) |
|
(17,813) |
|
(10,451) |
|
(417) |
|
(77,519) |
|
358 |
|
(77,161) |
|
Inter-segment expenses |
|
(12,547) |
|
(2,793) |
|
(9,647) |
|
(4,805) |
|
(12) |
|
(29,804) |
|
29,804 |
|
— |
|
Total segment expenses |
|
(50,361) |
|
(13,817) |
|
(27,460) |
|
(15,256) |
|
(429) |
|
(107,323) |
|
30,162 |
|
(77,161) |
|
Segment results |
|
36,361 |
|
(1,530) |
|
1,233 |
|
5,061 |
|
(201) |
|
40,924 |
|
(1,752) |
|
39,172 |
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(12,568) |
|
(7,085) |
|
(3,036) |
|
(5,729) |
|
(1) |
|
(28,419) |
|
(780) |
|
(29,199) |
|
Depreciation and amortization |
|
(12,808) |
|
(2,881) |
|
(1,386) |
|
(1,715) |
|
(19) |
|
(18,809) |
|
253 |
|
(18,556) |
|
Provision recognized in current period |
|
(221) |
|
(392) |
|
119 |
|
(238) |
|
(1) |
|
(733) |
|
(10) |
|
(743) |
|
|
|
2017 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Adjustments & |
|
Total |
|
|
|
Mobile |
|
Consumer |
|
Enterprise |
|
WIB |
|
Others |
|
Segment |
|
eliminations |
|
consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
|
90,073 |
|
11,105 |
|
19,130 |
|
7,439 |
|
126 |
|
127,873 |
|
383 |
|
128,256 |
|
Inter-segment revenues |
|
3,086 |
|
287 |
|
16,801 |
|
15,305 |
|
602 |
|
36,081 |
|
(36,081) |
|
— |
|
Total segment revenues |
|
93,159 |
|
11,392 |
|
35,931 |
|
22,744 |
|
728 |
|
163,954 |
|
(35,698) |
|
128,256 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
|
(39,452) |
|
(10,360) |
|
(20,627) |
|
(12,333) |
|
(979) |
|
(83,751) |
|
(603) |
|
(84,354) |
|
Inter-segment expenses |
|
(14,382) |
|
(1,563) |
|
(15,053) |
|
(5,611) |
|
(70) |
|
(36,679) |
|
36,679 |
|
— |
|
Total segment expenses |
|
(53,834) |
|
(11,923) |
|
(35,680) |
|
(17,944) |
|
(1,049) |
|
(120,430) |
|
36,076 |
|
(84,354) |
|
Segment results |
|
39,325 |
|
(531) |
|
251 |
|
4,800 |
|
(321) |
|
43,524 |
|
378 |
|
43,902 |
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(15,134) |
|
(6,544) |
|
(3,637) |
|
(7,120) |
|
(11) |
|
(32,446) |
|
(708) |
|
(33,154) |
|
Depreciation and amortization |
|
(13,560) |
|
(2,839) |
|
(2,136) |
|
(2,382) |
|
(22) |
|
(20,939) |
|
462 |
|
(20,477) |
|
Provision recognized in current period |
|
(291) |
|
(385) |
|
(668) |
|
(127) |
|
(2) |
|
(1,473) |
|
(21) |
|
(1,494) |
Adjustments and eliminations:
|
|
|
2015 |
|
2016 |
|
2017 |
|
Segment results |
|
32,330 |
|
40,924 |
|
43,524 |
|
Operating loss of operating business |
|
(194) |
|
(339) |
|
(786) |
|
Other eliminations and adjustments |
|
282 |
|
(1,390) |
|
1,195 |
|
IFRS reconciliation |
|
(49) |
|
(23) |
|
(31) |
|
Consolidated operating income |
|
32,369 |
|
39,172 |
|
43,902 |
Geographic information:
|
|
|
2015 |
|
2016 |
|
2017 |
|
External revenues |
|
|
|
|
|
|
|
Indonesia |
|
100,456 |
|
114,093 |
|
125,970 |
|
Foreign countries |
|
2,014 |
|
2,240 |
|
2,286 |
|
Total |
|
102,470 |
|
116,333 |
|
128,256 |
The revenue information above is based on the location of the customers.
There is no revenue from major customer which exceeds 10% of total revenues for the year ended December 31, 2017.
|
|
|
2015 |
|
2016 |
|
2017 |
|
Non-current operating assets |
|
|
|
|
|
|
|
Indonesia |
|
105,116 |
|
114,948 |
|
130,169 |
|
Foreign countries |
|
1,395 |
|
2,371 |
|
3,233 |
|
Total |
|
106,511 |
|
117,319 |
|
133,402 |
Non-current operating assets for this purpose consist of property and equipment and intangible assets.