Indosat Ooredoo Hutchison (ISAT) Q2 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in 1H24, with revenue up 13.4% year-over-year to IDR 27.98 trillion, EBITDA rising 18% to IDR 13.4 trillion, and normalized net profit more than doubling to IDR 2.92 trillion, driven by robust demand and rural expansion.

• Strategic focus on expanding core business beyond metropolitan areas, growing home broadband, leveraging AI partnerships, and enhancing national security.

• Maintained a strong financial position with total assets of IDR 112.78 trillion and equity of IDR 34.34 trillion as of 30 June 2024.

• Signed partnerships with NVIDIA, Google, Cisco, and Mastercard to advance AI and security initiatives.

• Interim financial statements received a clean review conclusion from the independent auditor.

Financial highlights

• Total revenue reached IDR 27.98 trillion in 1H24, up 13.4% year-over-year, with cellular contributing over 84% of total revenue.

• EBITDA grew 17.8% year-over-year to IDR 13.4 trillion, with margin improving to 47.9%.

• Normalized net profit surged 112.1% year-over-year to IDR 2.92 trillion.

• Earnings per share rose to IDR 339.18 from IDR 236.70 year-over-year.

• Quarter-on-quarter, revenue and EBITDA grew by 2.2% and 6%, respectively.

Outlook and guidance

• Confident in achieving IDR 20 trillion CapEx guidance for full year 2024, with capital expenditures for the period reaching IDR 7.86 trillion.

• Long-term guidance targets sustainable EBITDA margin close to 50%.

• Industry growth expected at mid-single digits, with company aiming to outpace this rate.

• Anticipates 5G licensing in 2025, with major investments starting in 2026.

• Management continues to focus on network expansion, digital transformation, and operational efficiency.