Indosat Ooredoo Hutchison (ISAT) Q3 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth for the first nine months of 2024, with revenue up 12% year-on-year to Rp41.8 trillion and normalized net profit up 73% year-on-year, reflecting strong business fundamentals and successful merger synergies.

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

• Benefited from merger synergies, delivering $450 million in recurring annualized savings, exceeding initial guidance.

• Net profit for the period was Rp4.16 trillion, a significant increase from Rp2.99 trillion in the same period last year.

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

Financial highlights

• Revenue grew to Rp41.8 trillion from Rp37.5 trillion year-on-year, with cellular revenue at Rp35.2 trillion.

• EBITDA increased 14.5% year-on-year to IDR 20 trillion, with EBITDA margin rising 1.2 percentage points to 47.8%.

• Normalized net profit rose 73% year-on-year to IDR 3.8 trillion, driven by top-line growth and cost efficiencies.

• Net debt/EBITDA remained low at 0.37x, with net debt up IDR 1.5 trillion due to CAPEX payment timing.

• Basic and diluted EPS increased to Rp120.25 from Rp86.42, calculated post-stock split.

Outlook and guidance

• Confident in achieving 2024 guidance, targeting EBITDA margin close to 50% in Q4 and CAPEX spend around IDR 12 trillion.

• Expecting improved trends in Q4 as government transition effects subside and price increases take full effect.

• Progressive and sustainable dividend policy under consideration, aiming for up to 70% payout.

• Management aims to maintain a debt-to-equity ratio below 2.5, with the current ratio at 0.39.