Indosat Ooredoo sees revenue growth in Q1, but net profit plummets

23 May 2017

Indonesian operator Indosat Ooredoo has released its unaudited interim consolidated financial statements for the three months ended 31 March 2017, confirming that net income for the period slumped 19.9% year-on-year to IDR173.9 billion (USD13.08 million) from IDR217.2 billion in 1Q16, despite first-quarter turnover increasing 7.0% to IDR7.290 trillion over the same period. Indosat Ooredoo, which is 65%-owned by Ooredoo subsidiary Ooredoo Asia, said its strong revenue growth was supported by growth in its ‘Multimedia Data Internet’ (MIDI, e.g. IT and electronic payment services) and cellular businesses – which increased sales by 9.9% and 6.6% respectively – with growth of mobile service revenue fuelled by sales derived from data (up 40.5% y-o-y). EBITDA of IDR3.099 trillion marked a 4.7% increase from IDR2.961 trillion in 1Q16; EBITDA margin of 42.5% was down one percentage point y-o-y.

Revenue from Indosat Ooredoo’s cellular unit stood at IDR6.051 trillion in 1Q17, compared to IDR5.676 trillion in the same period of 2016, as mobile subscribers rose sharply (+37.0%) to 95.6 million, of which one million are post-paid users. The strong growth in the subscriber base in the year to March was attributed to the successful launching of its ‘Freedom Combo’ packages and IDR1/second campaign. Blended monthly ARPU reached IDR21,000 in the period under review, down from IDR26,400, nevertheless Indosat Ooredoo remarked on its aggressive rollout programme which resulted in 58,175 base transceiver stations (BTS) on-air by 31 March 2017, of which 24,219 are 2G, 28,510 are 3G BTS and 5,446 are 4G-enabled sites. In Q1 2017, 56% of Indosat Ooredoo’s customers were data users connected to the internet using a smartphone. On average, the data users consumed 1.9GB/month. Minutes of use (MOU), however, slipped by 17.4% y-o-y to 57.0 minutes from 68.9 minutes.

Indonesia, Indosat Ooredoo (incl. IM2)