Indosat Ooredoo Hutchison (ISAT) Q4 2024 earnings summary

Executive summary

• FY24 revenue grew 9.1% to IDR 55.89 trillion, with EBITDA up 10.2% and normalized net profit up 38.1% year-over-year, driven by core mobile, ICT, and AI platform expansion.

• Achieved $462 million in recurring synergy, surpassing pre-merger guidance, and invested over $2.2 billion in network expansion, adding 9,000 tower sites and covering 16,000 new villages.

• Embedded AI across core business, launched GPU as a Service, and secured $30 million in multi-year contracts, positioning as Indonesia's national cloud partner with NVIDIA.

• Board and auditor confirmed compliance with Indonesian Financial Accounting Standards.

• Merger synergies were delivered ahead of schedule, supporting profitability.

Financial highlights

• FY24 revenue rose 9.1% to IDR 55.89 trillion, EBITDA up 10.2% to IDR 26.4 trillion, and EBITDA margin improved to 47.2%.

• Net normalized profit increased 38.1% to IDR 4.92 trillion, supported by top-line growth and cost efficiencies.

• Cellular revenue grew to Rp47.04 trillion, up 7.5% year-over-year; MIDI revenue increased to Rp7.99 trillion, up 23%.

• Capitalized CAPEX decreased 22.3% year-over-year to IDR 9.94 trillion, with CAPEX to revenue ratio dropping to 17.8%.

• Net debt/EBITDA remains low at 0.4x, with net debt up IDR 0.8 trillion due to tax payments and CapEx timing.

Outlook and guidance

• Targeting revenue growth above market and absolute EBITDA growth above 10% for 2025.

• CapEx guidance for 2025 set at IDR 13 trillion, with continued investment in network and AI infrastructure.

• Progressive dividend policy to increase payout from 48% in 2023 to 70% by 2026, subject to annual review and approvals.

• Management aims to maintain a debt-to-equity ratio below 2.5 and strong credit ratings.

• Industry revenue growth expected to improve to 4-5% in 2025, up from 2-3% in 2024, aided by market consolidation and improved consumer sentiment.