PT Sarana Menara Nusantara Tbk (SMN/TOWR.JK) announces plans for a full year 2017 dividend of IDR 1.0 to 1.5 trillion.
Jakarta, February 21, 2018 | Source: Company

SMN, the leading telecom infrastructure provider in Indonesia and the parent company of PT Protelindo, announced plans today for a full year 2017 dividend payment of between IDR 1.0 to 1.5 trillion. The proposed total dividend will be subject to approval at the annual general meeting of shareholders to be held no later than May 2018.

"Based on the strong net free cash flow generated by the Company during 2017, the management of PT SMN and PT Protelindo will propose a substantial increase in the total dividend paid for the full year 2017", stated Bapak Aming Santoso, the President Director of PT SMN. "The proposed total dividend will amount to between IDR 1.0 and 1.5 trillion. The increase in the dividend payment considers the strong organic growth in tenancies and leases enjoyed by SMN in 2017 while maintaining the Company's investment grade status and capacity for future organic and inorganic expansion".

"SMN paid its first dividend totaling IDR 700 billion for fiscal year 2016. The planned 2017 total dividend will be significantly higher than the 2016 total dividend and includes the interim 2017 dividend of IDR 300 billion paid in December 2017", continued Bapak Aming Santoso. "The strong increase in the total proposed dividend is in line with the Company's 'Build, Buy Return' strategy for the benefit of all our stakeholders".

During 2017 SMN received orders for more than 2,300 new tenancy leases. Of the total amount of new tenancy leases, nearly 1,600 tenancy leases have been installed and have commenced generating revenue. The Group also received 3,700 additional equipment leases in 2017. "The total new tenancy and additional equipment leases received in 2017 represent the strongest organic growth experienced by SMN since 2014", quoted Bapak Aming Santoso. "We look forward to continued strong growth in new tenancies and additional equipment leases in 2018 as the telco operators continue to expand ex-Java and we see an increased focus on capacity expansion in Java". As of December 2017, SMN had over 14,800 towers, more than 25,000 tenant leases, approximately 4,100 km of fiber optic cable network and over 250 Points-of-Presence ("PoP") sites in metropolitan Jakarta and Surabaya. SMN also operates and leases a nationwide Very Small Aperture Terminal ("VSAT") network providing satellite services throughout Indonesia.

SMN has been listed on the Indonesian Stock Exchange since 2010 and has a market capitalization of approximately IDR 37 trillion. Slightly more than 50 percent of SMN's shares are owned by vehicles belong to the Indonesia based Hartono Family, the shareholders of the Djarum Group of Companies.