Indosat Ooredoo back in the black in Q1

12 May 2016

Indonesian fixed and mobile operator Indosat Ooredoo returned to profit in the three months ending 31 March 2016, posting first-quarter net income of IDR217.20 billion (USD17 million), compared to a net loss of IDR455.50 billion for the corresponding period of 2015. The carrier also reported strong gains in revenue, as quarterly sales increased to IDR6.81 trillion, from IDR6.09 trillion in 1Q15, driven by a 15.8% year-on-year rise in cellular revenues (i.e. voice, data, SMS and value added services [VAS]) – the group’s single largest contributor to turnover (83%); fixed data and fixed voice accounted for 13% and 4% respectively. EBITDA surged 13.7% y-o-y to IDR2.96 trillion, and EBITDA margin improved by 0.8 of a percentage point to 43.5%. Commenting on the strong Q1 performance, Alexander Rusli, president director of Indosat Ooredoo, said: ‘After this outstanding achievement, we are very optimistic with our financial report for [full-year] 2016.’

Indosat Ooredoo closed out 31 March 2016 with a total of 69.8 million mobile subscribers, up 4.9% on an annualised basis, of whom some 29.2 million (or 42.3% of the total) were connected to data services using a smartphone. Indosat Ooredoo confirmed that the growing customer base drove its y-o-y data revenue growth to 45.5%, helping data services earn the company more revenue than voice services. Monthly blended ARPU of IDR26,400 marked a 9.9% improvement from IDR24,000 a year earlier, as total data traffic soared 60.5% to 63,987TB; minutes of use (MOU) was also up 2.4% at 68.9 minutes per month.

By the start of April this year, Indosat Ooredoo had 23,714 2G base transceiver stations (BTS) on air, up 6.8% y-o-y, while 3G BTS stood at 25,068 (up 35.2%), and the number of 4G BTS had increased dramatically to 3,544 on air, from just 75 previously.

Indonesia, Indosat Ooredoo (incl. IM2)