Indosat Ooredoo Hutchison (ISAT) Q1 2025 earnings summary

Executive summary

• Achieved sequential improvement in Q1 2025 with stronger profitability and most financial and operational metrics improving, despite a challenging market environment.

• Added 700,000 customers and 1.3 million unique data users, with ARPU rising 0.8% quarter-on-quarter to IDR 39,200.

• EBITDA and net profit grew quarter-on-quarter, with net profit up 27% from Q4 due to one-off gains and normalized net profit up 6%.

• AI initiatives powered hyper-personalization, operational efficiency, and new business lines, supporting ARPU growth.

• Maintained a strong equity position at Rp37,904,066 million as of 31 March 2025.

Financial highlights

• Q1 2025 revenue was IDR 13.58 trillion, down 3.5% sequentially due to seasonality, with normalized revenue change at +1.4%.

• EBITDA rose 0.6% quarter-on-quarter to IDR 6.4 trillion, with margin up 1.9 percentage points to 47.2%.

• Net profit reached IDR 1.41 trillion, up from IDR 1.39 trillion year-on-year, with normalized net profit at IDR 1.15 trillion, up 6% quarter-on-quarter.

• Cellular segment contributed IDR 11.42 trillion, MIDI IDR 1.96 trillion, and fixed telecommunications IDR 0.19 trillion in Q1 2025.

• Net debt-to-EBITDA ratio improved to 0.36x, and net debt stood at IDR 9.34 trillion.

Outlook and guidance

• Management reaffirmed 2025 guidance: EBITDA growth above 10%, revenue growth to outpace market, and CAPEX spend around IDR 13 trillion.

• SIM card price increase to IDR 35,000 expected to benefit revenue and industry discipline from June onwards.

• AI TechCo business to contribute $35 million in net new revenue in 2025, with full-year impact in 2026-2027.

• Dividend payout ratio targeted to reach 70% by 2027, up from below 50% in 2024.

• Focus remains on network expansion, digital services, and operational efficiency.