Indosat Ooredoo books solid first-quarter profit as merger talks continue

24 May 2021

Indonesian mobile operator Indosat Ooredoo – whose parent Ooredoo Group is in talks with Hong Kong-based CK Hutchison (owner of Hutchison 3 Indonesia [Tri]) in relation to a potential transaction to combine their respective telecommunications businesses in Indonesia – reported a net profit of IDR172.0 billion (USD12 million) in the first quarter of 2021, reversing a loss of IDR605.6 billion in the corresponding period of 2020.

The digital telecommunications company booked revenue growth of 12.6% year-on-year to IDR7.3 trillion, as cellular revenues rose 12.5% to IDR6 trillion and fixed data revenue increased by 15.8% to IDR1.16 trillion. In addition, Indosat Ooredoo noted that its Enterprise segment had exhibited signs of recovery, with revenue there growing by 17.1% y-o-y to IDR1.3 trillion. Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased significantly – by 42.5% on an annualised basis, to IDR3.4 trillion – fuelled by the combination of solid top-line growth and cost efficiency, which yielded an EBITDA margin of 46.2%, up 9.7% on Q1 2021, the highest for seven quarters. Furthermore, the company also grew its customer base by 7% y-o-y to 60 million, with monthly blended ARPU up 11% at IDR32,700 in the first quarter of this year, thanks to a 46% rise in data traffic.

Commenting on the results, Indosat president director and CEO Ahmad Al-Neama said: ‘Our growth momentum is continuing to take shape, reflected in our double-digit revenue growth, a solid EBITDA performance, as well as booking a net profit. This performance for the first quarter of 2021 is our new benchmark for our future financial performance’.