Mar 2, 2011

TBIG to distribute Rp27.44 dividend

Telecommunication tower provider PT Tower Bersama Infrastructure Tbk (TBIG) is planning to distribute Rp125 billion dividend of Rp27.44 per share from 2010''s financial performance.
"Referring to our hefty cash flow and revenue last year, we aim to distribute Rp125 billion dividend," said Tower Bersama Corporate Secretary and CFO Helmy Yusman Santoso, yesterday. At end of last year, Tower Bersama has managed 42,789 tenants and operated 3,104 towers.
Fitch Ratings has assigned Indonesia's Tower Bersama long-term foreign and local currency issuer default ratings (IDRs) of BB. The outlook is stable.
TBIG's ratings reflect the strong credit quality of its tenants, with around 60% of its revenues and EBITDA derived from the leading four Indonesian telcos, PT Telekomunikasi Indonesia Tbk (Telkom, BB+/stable), PT Telekomunikasi Selular (Telkomsel, BBB-/stable), PT Indosat Tbk (Indosat, BBB-/stable), and PT XL Axiata Tbk (XL, BB/stable).
Fitch notes TBIG's management policy to ensure that over 60% of its revenues continue to originate from the top-four telcos over the long term, and to only construct new tower sites after obtaining a long-term lease commitment from a telecom operator.
TBIG is the second-largest independent tower company in Indonesia, in terms of telecom sites and tenancy. The company's cash flow has strong visibility and stability due to its long-term agreements (eight to 10 years) with all Indonesian telcos (10 operators), which involve tight exit conditions and in-built escalation clauses (linked to the country's inflation rate).

Disclosure: No position at the stock mentioned above.

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