Indosat Ooredoo Hutchison (ISAT) Q2 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in 1H24, with revenue up 13.4% year-on-year to IDR 27.98 trillion and EBITDA rising 18% to IDR 13.4 trillion, driven by robust demand for data and connectivity, especially in rural areas.

• Normalized net profit more than doubled year-on-year to IDR 2.7 trillion, with reported net profit reaching IDR 2.92 trillion.

• Strategic focus on expanding core business beyond metropolitan cities, growing home broadband, unlocking AI potential, and enhancing national security.

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

• 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.

Financial highlights

• Revenue increased to IDR 27.98 trillion in 1H24, up 13.4% year-on-year.

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

• Normalized net profit surged 112.1% year-on-year to IDR 2.7 trillion.

• Cellular segment contributed IDR 23.6 trillion, MIDI IDR 3.92 trillion, and fixed telecommunications IDR 458.87 billion.

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

Outlook and guidance

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

• 2024 consolidated revenue growth expected to outperform market, which is projected at mid-single digit percentage.

• EBITDA margin for 2024 guided to be close to 50%.

• Anticipate scale-up in home broadband and AI business lines, with significant AI contributions to EBITDA from next year.

• The company aims to maintain a debt-to-equity ratio below 2.5, with the current ratio at 0.41.