Indonesia’s Indosat back in black in FY21

23 Feb 2022

Indonesian telco PT Indosat, trading as Indosat Ooredoo Hutchison (IOH) since its recently announced merger with fellow operator Hutchison 3 Indonesia, reported revenues of IDR31.388 trillion (USD2.18 billion) in FY21, up 12.4% from IDR27.928 trillion in the previous year, as it swung back into profit – IDR6.751 trillion – following a net loss of IDR716.7 billion in FY20.

Reporting on its ‘stellar performance’ in its MD&A report, the company said the rise in revenue was the result of a robust performance in its cellular and enterprise businesses while noting that EBITDA increased by 21.4% year-on-year to IDR13.886 trillion, yielding an EBITDA margin of 44.2% (FY20: 40.9%). Further, the significant net profit reported was, it said, ‘primarily driven by net gain on sale and leaseback of towers, stellar top-line performance and continuous cost optimisation’. Meanwhile, full-year CAPEX stood at IDR6.892 trillion (excluding IDR5.237 trillion of Right of Use Assets), down 20.6% y-o-y, of which 85% was allocated to cellular, to support data services demand; the remaining balance was allocated to MIDI, infrastructure and IT CAPEX.

Turning to key operational metrics, Indosat noted that the company’s customer base increased 4.4% to 62.9 million in FY21 compared to the previous year, driven by ‘the longstanding strategy of offering simple, relevant, and transparent products’ backed by ‘smart’ CAPEX network investments. Blended monthly ARPU increased to IDR34,400, from IDR31,900 in FY20, while network improvements and product portfolio ‘fine-tuning’, resulted in annualised data traffic growth of 36.7% in FY21.

PT Indosat and PT Hutchison 3 Indonesia officially merged as Indosat Ooredoo Hutchison (IOH) in early January 2022, after receiving all the required approvals from their shareholders. The newly combined IOH is now the archipelago’s second largest mobile network operator behind Telkomsel (Telekomunikasi Selular), with estimated annual revenue of approximately USD3 billion. Further, the combination is expected to result in annual savings of between USD300 million and USD400 million, realised over the next three to five years, hopefully facilitating deeper innovation and network enhancements, including the rollout of 5G infrastructure.

Indonesia, Indosat Ooredoo Hutchison (IOH)