MTEL – To distribute IDR2.01 tn in ‘24 dividends

MTEL – To distribute IDR2.01 tn in ‘24 dividends Dayamitra Telekomunikasi (MTEL) will distribute a cash dividend of IDR2.01 tn, or IDR25.33 per share, from its net profit for the fiscal year 2024. According to the latest public disclosure, MTEL has allocated 70% of its net profit, amounting to IDR1.47 tn, as a regular cash dividend. This is equivalent to IDR18.09 per share. In addition, MTEL will distribute a special dividend of IDR590.15 bn, or 28% of its 2024 net profit, which equals IDR7.23 per share. The schedule for MTEL’s cash dividend distribution: cum dividend in regular market: June 11, 2025; recording date: June 13, 2025; dividend payment date: July 2, 2025. (Source : Kontan) Comment : Using the latest price, the dividend yield will be 4.3%. Despite a significant dividend distribution, we view MTEL as financially strong, with ample cash, low debt, and robust OCF, positioning it well to support its capex. The company's promising outlook is fueled by consistent tower demand from MNOs, which has not been significantly impacted by the EXCL-FREN merger, as well as strategic acquisitions that expand its portfolio and improve tenancy, especially outside Java. Furthermore, MTEL is actively enhancing its fiber optic infrastructure to expand its network and improve margins.