Indosat Ooredoo 9M18 revenue sinks 26%; subscribers down 34% to 64.1m

31 Oct 2018

Indonesia’s Indosat Ooredoo has published the key highlights and unaudited operational results for the nine months ended 30 September 2018, reporting a sizeable 25.7% fall in year-on-year revenue to IDR16.7 trillion (USD1.097 billion), down from IDR22.5 trillion last year. EBITDA in the first three quarters stood at IDR5.15 trillion, down 47.9% from IDR9.9 trillion in 9M17; EBITDA margin was 30.8%, down 13.1pp. CAPEX in the period under review reached IDR4.79 trillion, compared to IDR2.49 trillion previously.

Operationally speaking, the carrier closed out September 2018 with a total of 64.1 million mobile subscribers, down 33.9% compared to 97.0 million the previous year following a government-led SIM registration scheme. Of the total, 62.6 million are pre-paid (3Q17: 95.8 million) and 1.5 million on monthly contracts (3Q17: 1.2 million). Blended monthly ARPU stood at IDR16,700 in 9M18, down 21.1% when compared to IDR21,200 in the year-ago period, as pre-paid and post-paid ARPU fell sharply, by 22.6% and 28.4% respectively.

The operator’s press release pointed out that, based on unaudited figures, Q3 2018 revenues increased by 6.0% quarter-on-quarter to IDR5.70 trillion, and Q3 EBITDA improved q-o-q by a similar percentage to IDR1.65 trillion, ‘showing that impact from the SIM card registration has started to ease off’, while adding: ’We maintain a cautiously optimistic view and continue to see long term opportunities in the new market environment with a more loyal customer base and lower churn rates that will lead to higher margins in future. Network expansion outside of Java is on schedule, with 4G rollout completed in three out of the five provinces.’

Indonesia, Indosat Ooredoo Hutchison (IOH)