PT Sarana Menara Nusantara (TOWR) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked the first quarter consolidating IBST, acquired July 1st, driving revenue growth of 8.4% and EBITDA growth of 7.1% year-over-year, with an EBITDA margin of 84%.

• Maintains position as Indonesia's leading independent digital infrastructure provider, with 35,371 towers and 258,135 km of fiber.

• Net income slightly increased to IDR 2.478 trillion from IDR 2.474 trillion last year, with a net income margin of 26.2%.

• Major acquisitions included the completion of the IBST tender offer, increasing ownership to 99.98%, and the acquisition of IKS and IPI, expanding service offerings.

• Long-term, non-cancellable contracts underpin predictable recurring revenue and high cash flow visibility.

Financial highlights

• 3Q2024 revenue rose 12.0% year-over-year to Rp3,295.2bn; EBITDA increased 12.4% to Rp2,812.5bn.

• Gross profit increased to Rp6.56 trillion from Rp6.25 trillion year-over-year.

• AFFO for 3Q2024 reached Rp7,340bn annualized, up 11.8% CAGR since 2016.

• Cash and cash equivalents rose to Rp2.52 trillion from Rp428.7 billion at year-end 2023.

• Dividend payout during nine months was IDR 935 billion.

Outlook and guidance

• Management expects further improvement in IBST performance and synergies in 2025, targeting IDR 700 billion EBITDA for IBST.

• FTTH home passes projected to reach 1.6–1.8 million by year-end 2024.

• Long-term contracts secure over Rp78.8 trillion in committed revenue through 2042.

• Ongoing focus on both organic and inorganic growth, with a strategic tilt toward fiber acquisitions.

• Capital expenditures will focus on network expansion and integration of acquired entities.