Connecting Every Corner

Have you ever noticed those tall towers along the roads? These are telecommunication towers, used by mobile operators and other communication service providers. 

One of the companies providing these towers is TOWR. Just like its name, they are in the business of telecom towers.

TOWR offers services that allow mobile operators to expand their network coverage without having to invest in building their own towers.

With TOWR's services, operators can focus more on improving their service quality for customers without being burdened by huge infrastructure costs. Moreover, TOWR helps extend internet coverage to remote areas that are hard to reach.

So, the next time you see a telecom tower around, remember that companies like TOWR are working behind the scenes to keep us all connected.

TOWR has just released its 1Q24 financial results, and they are impressive. The company reported a revenue of IDR 3.04 tn in 1Q24, up 6.3% from IDR 2.86 tn in 1Q23.

Source: Bloomberg

This revenue boost came from all of TOWR's business segments showing yoy growth. But the real star of the show is their tower business.

TOWR's tower business is expected to keep growing because they have long-term, profitable contracts. Imagine, contracts for towers can last up to 10 years, and for fiber, even longer. These contracts are non-cancellable and renewable, ensuring a stable income for a long time.

Not only that, but TOWR's clients heavily rely on their services. The high cost of relocation and the significant network impact make tenants prefer extending their contracts. 

So, TOWR can enjoy a steady stream of income without much worry.

Right now, TOWR boasts a total of 31,049 towers spread across Indonesia. With such an impressive number of towers, it's no wonder TOWR is one of a major player in the industry.

Source: Company

Besides their solid tower business, TOWR is now intensifying its focus on strengthening its fiber optic business. They've expanded their fiber optic cables to 220,975 km, connecting a total of 124,704 households. The Fiber to the Home (FTTH) segment is the fastest growing yoy.

Source: Company

From the revenue we mentioned earlier, TOWR achieved a net profit of IDR 797.4 bn, up 6% from IDR 752 bn in 1Q23. These numbers show that their strategy is working and the company is on the right track.

Source: Bloomberg

Looking at their history, TOWR has a consistent track record of growth. They've acquired towers from XL and ISAT, two giants in the telecommunications industry. 

Source: Company

But they didn't stop there. TOWR also acquired iForte, and through iForte, they plan to acquire 90.11% of PT Inti Bangun Sejahtera Tbk (IBST). Yes, they are continuously expanding to strengthen their market position.

Many people might be wondering, what about Starlink? Will it become a tough competitor for TOWR? 

When it comes to bandwidth and latency, TOWR, which specializes in fiber optic technology, still holds the upper hand.

Starlink undoubtedly offers significant potential for remote areas—places where trees outnumber people—where traditional tower infrastructure hasn't reached. Yet, for urban areas bustling with digital activity, TOWR's fiber optic solutions remain the top choice. 

When it comes to installation and monthly fees, Starlink is still pretty expensive. Imagine, the installation alone can cost up to IDR 7.8 mn! Personally, that's way too pricey for me. 

Source: Starlink

So, I'm sticking with TOWR's FTTH service. With more affordable prices and reliable service, TOWR is still the best choice for my home internet connection. Plus, TOWR keeps improving their coverage and service quality, so there's no reason to switch to a more expensive option.

With a strong presence in both tower and fiber optic businesses, TOWR is set for a bright future. Their impressive financial performance and strategic acquisitions show that they are committed to growth and innovation. 

This makes TOWR a great investment opportunity for those looking to invest in a company with a proven track record and strong growth potential.