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 quarter-on-quarter, despite a challenging market environment.

• Added 0.7 million customers and 1.3 million unique data users, with ARPU rising 0.8% sequentially to IDR 39,200.

• AI-driven initiatives powered hyper-personalization, operational efficiency, and new business lines.

• Net profit for Q1 2025 was Rp1,412,235 million, up from Rp1,391,568 million year-over-year, with a one-off gain boosting net profit to IDR 1.3 trillion.

• The interim financial statements received a clean review with no material misstatements identified.

Financial highlights

• Q1 2025 revenue was IDR 13.6 trillion (Rp13,577,863 million), down 3.5% sequentially due to seasonality and fewer days in the quarter; normalized revenue change was +1.4%.

• EBITDA rose 0.6% quarter-on-quarter to IDR 6.4 trillion (Rp6,718,007 million), with margin up 1.9 percentage points to 47.2%.

• Net profit reached IDR 1.3 trillion (Rp1,412,235 million), up 27% from Q4, driven by one-off gains; normalized net profit up 6% quarter-on-quarter.

• Cellular segment contributed Rp11,421,747 million in revenue, MIDI Rp1,961,371 million, and fixed telecommunications Rp194,745 million for Q1 2025.

• Significant one-off gains from tax provision reversal (IDR 157 billion) and asset disposal (IDR 100 billion) contributed to other operating income of IDR 303 billion.

Outlook and guidance

• Management remains committed to 10% EBITDA growth for 2025, driven by ARPU growth, cost leadership, and AI business contributions.

• 2025 guidance reaffirmed: consolidated revenue growth expected to be better than market, EBITDA growth faster than revenue (>10%), 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 expected in 2026-2027.

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