Indosat Ooredoo Hutchison (Indosat) experienced significant financial growth in the first nine months of 2024, due to a strong focus on operational excellence.
The company reported double-digit revenue growth and continued to outperform the industry with substantial improvements, as evidenced by key financial indicators.
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Financial Highlights
During the first nine months of 2024 (9M24), Indosat generated total revenues of IDR 41,812 billion, marking an 11.6% Year-on-Year (YoY) increase. EBITDA also showed strong growth, rising by 15% YoY to IDR 20,000 billion, resulting in an EBITDA margin of 47.8% in 9M24.
Profit for the Period Attributable to Owners of the Parent reached IDR 3,878 billion, indicating a 39.1% YoY increase, reflecting Indosat's continued profitable quarters. The company's cellular, MIDI, and fixed telecommunications businesses contributed 84.3%, 14.1%, and 1.6%, respectively, to overall revenue. While cellular services continued to dominate, growing 9.5% YoY due to increased data usage, the MIDI segment saw a significant 30.2% increase, driven by growth in fixed internet, fixed connectivity, and IT services. This shift towards AI and digital solutions positions MIDI as an increasingly important contributor to Indosat's overall business.
Vikram Sinha, President Director & CEO of Indosat Ooredoo Hutchison, stated, “These results reflect our ongoing efforts in operational excellence, strategic capital allocation, and leveraging AI-driven transformation. Our focus remains on delivering a great experience to all stakeholders and ensuring strong financial performance while adapting to the ever-changing telecommunications landscape.”
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Significant Growth Catalysts
These results demonstrate Indosat’s strategic focus on enhancing customer value and optimizing costs, leading to strong overall performance. The company's strategic capital expenditure (CapEx) has been crucial to this success, with investments aimed at improving network infrastructure, especially in rural and eastern parts of Indonesia, and driving business expansion. Indosat increased its 4G BTS by 12.5% YoY to 193,562 sites, meeting the growing data demand while providing a great experience for its customers, positioning the company favorably for sustained long-term growth. This expansion led to a significant increase in data traffic, rising by 12.5% YoY to 12,050 Petabytes (PB) in the first nine months of 2024.
Furthermore, Indosat's focus on attracting high-quality customers has significantly contributed to an increase in Average Revenue Per User (ARPU) of IDR 37.7 thousand in the first nine months of 2024, marking an 8.7% rise compared to the same period in the previous year. Additionally, Indosat aims to enhance its infrastructure to ensure robust, reliable coverage nationwide. Central to this transformation is the integration of AI, which Indosat uses to optimize operations, drive innovation, and enhance customer experiences. This approach has helped improve operational efficiency and strengthen the company's competitive position in the market.
Indosat is forming strategic partnerships with global leaders like NVIDIA, Microsoft, Google, Mastercard, and Huawei to support these initiatives. Notable achievements include the launch of its AI Experience Center and the introduction of GPU Merdeka by Lintasarta, a subsidiary of Indosat, which offers an AI cloud service. These efforts contribute to aligning with the nation's 2045 Golden Indonesia Vision.
In line with its commitment to digital empowerment, Indosat continues to bridge the digital divide and promote digital inclusion. Through initiatives such as IDCamp and SheHacks, the company is actively expanding digital literacy and promoting gender equality. To date, IDCamp has trained over 270,000 students, equipping them with essential skills to thrive within Indonesia's digital economy. Indosat is also advancing its Environmental, Social, and Governance (ESG) agenda by adopting sustainable practices, including renewable energy solutions; improving cybersecurity; and enhancing data privacy measures.
These initiatives align with Indosat's commitment to building a brighter, more inclusive digital future for Indonesia. “With a collaborative approach inspired by the spirit of Gotong Royong, we remain committed to our larger purpose of empowering Indonesia and ensuring that the country remains at the forefront of the regional digital economy,” Sinha concluded.
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