Indosat Ooredoo Hutchison (ISAT) Q3 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth of 11.6% year-over-year for the nine months ended September 2024, with revenue reaching Rp41.8 trillion and strong merger synergies totaling $450 million.

• EBITDA grew 14.5% to IDR 20 trillion, with margin improving to 47.8%.

• Normalized net profit surged 73% year-over-year to IDR 3.8 trillion, while reported net profit reached Rp4.16 trillion.

• Digital leadership strengthened with five million new app users, higher ARPU from app users, and expanded rural distribution and service points.

• A stock split was implemented effective 14 October 2024, increasing B shares fourfold.

Financial highlights

• Revenue increased to IDR 41.8 trillion, with cellular revenue at Rp35.2 trillion and MIDI at Rp5.9 trillion.

• EBITDA rose to IDR 20 trillion, with margin up 1.2 percentage points to 47.8%.

• Net normalized profit improved 73% to IDR 3.8 trillion; net profit for the period was Rp4.16 trillion.

• Net debt/EBITDA at 0.37x, and debt-to-equity ratio at 0.39.

• Net cash from operating activities was Rp15.5 trillion, up from Rp14.6 trillion year-over-year.

Outlook and guidance

• Management remains committed to 2024 guidance, expecting EBITDA margin to approach 50% in Q4, with continued focus on premium services and digital expansion.

• Expects consolidated revenue growth better than market (mid-single digit %), and CAPEX spend around IDR 12 trillion.

• Continued capital expenditure focused on cellular network expansion and quality improvement.

• Management aims to maintain a debt-to-equity ratio below 2.5.