Indosat Ooredoo reports profits of IDR 172bn in Q121
Indosat Ooredoo reports net profits of IDR 172 billion ($11.9 million) for the first quarter of 2021.
Total revenue for the company increased by 12.6% year-on-year (YoY) to IDR 7.3 trillion ($508 million). Mobile revenues increased by 12.5% YoY to IDR 6 trillion ($417 million), while its enterprise business revenues were up 17.1 % YoY to IDR 1.3 trillion ($90.5 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 42.5% YoY, totalling IDR 3.4 trillion ($236 million). According to the company, this was driven by a combination of top-line growth and cost disciplines that resulted in its EBITDA margin reaching 46.2% in the period ended 31 March 2021.
This EBITDA margin is the highest reported over the company’s last seven quarters. Its net profit of IDR 172 billion ($11.9 million), also marks an IDR 778 billion ($54,1 million) improvement compared to the same period in 2020.
“Despite the operational challenges created by the ongoing pandemic, Indosat Ooredoo has made an outstanding start in 2021. Our growth momentum has continued to build, reflected in consecutive double-digit revenue growth, a strong EBITDA performance, and we also record a net profit,” said Ahmad Al-Neama, president, director and CEO of Indosat Ooredoo.
“This Q1 result has set a new benchmark for our financial performance. Our strategy to provide simple and relevant products, supported by our efforts in network excellence, has translated into an accelerating gain in cellular market share and a strong rebound in our enterprise business.”
“I would like to thank our loyal customers and all our stakeholders for their continuous support, which has helped us to deliver these outstanding results. We remain committed to providing communities across Indonesia with the connectivity and digital products and services they need during this tough time and to accelerating Indonesia’s transformation into a digital nation.”
In addition to the strong financial results, the company also recorded growth in its customer base totalling 60 million customers, an increase of 7% YoY. In line with this, its average revenue per user (ARPU) increased by 11% YoY to IDR 32,700 ($2.28), largely due to growth in data traffic, which increased by 46% compared to the same period in 2020.
In the first quarter of 2021, Indosat Ooredoo signed a sale and leaseback agreement with PT EPID Menara Asset Co (Edge Point Indonesia) for more than 4,200 telecoms towers. The deal is valued at IDR 11 trillion ($766 million) and unlocking capital to support Indosat Ooredoo’s growth plans with further improvements to its network and the launch of new digital solutions.