PT Sarana Menara Nusantara (TOWR) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 reached Rp12,735.8 billion, up 8.5% year-over-year, with EBITDA at Rp10,700.1 billion and net profit after minority interest at Rp3,335.4 billion, up 2.5%.

• Operational scale expanded to 35,400 towers and approximately 170,000 km of fiber, consolidating 3,200 towers from IBST and adding 4,842 towers and 35,251 km of revenue-generating fiber in 2024.

• The company is the largest independent digital infrastructure provider in Indonesia, owning about 30% of towers and fiber in the market.

• Maintains a build-to-suit model with long-term, non-cancellable contracts, ensuring predictable cash flows and over Rp75 trillion of committed future revenue through 2042.

• Received an unqualified audit opinion for 2024 financials, confirming fair presentation in accordance with Indonesian Financial Accounting Standards.

Financial highlights

• EBITDA margin stood at 84% for 2024, with net profit margin at 26.2% and gross margin at 68.6%.

• Free cash flow supported CapEx, dividends (Rp952 billion distributed), and share buybacks when opportunities arise.

• Leverage ratio increased to 4.58x due to IBST acquisition and tower builds for Indosat.

• Return on equity (ROE) was 18.8%, and return on investment (ROI) was 8.1%.

• Total assets increased to Rp77,828.4 billion, and total equity rose to Rp19,169.2 billion.

Outlook and guidance

• Organic revenue growth for 2025 is expected to be in the low single digits, with EBITDA impacted by the lower-margin non-tower segment.

• Tower count projected to grow by about 5% in 2025, with tenant numbers expected to be flat.

• Fiber kilometers for FTTH expected to increase by 2-3%, with HomePasses flat and HomeConnect penetration rising to 12%.

• Connectivity segment anticipated to grow by approximately 20% in 2025.

• Rights issue, previously delayed, is planned for execution in Q2 2025, with size and price likely to change.