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Indosat Ooredoo Hutchison Reports Strong Growth, Revenue up 10%, EBITDA up 23% in FY 2023
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Strong company performance growth drives bigger aspirations in 2024:
- Total revenue increased 10 percent compared to the previous year (YoY) to Rp 51.2 trillion.
- EBITDA grew significantly by 23 percent YoY to Rp 23.9 trillion.
- Normalized EBITDA margin increased by 4.5 percentage points YoY to 46.8 percent.
- Normalized net profit reached Rp 3.5 trillion and remained positive for three consecutive years.
- Mobile ARPU rose by 5.3 percent YoY to Rp 35,600.
- Data traffic increased by 14.8 percent YoY to 14,417 Petabytes (PB).
- Total 4G BTS increased by 30.7 percent YoY to 179,000, demonstrating the company's commitment to enhancing service quality nationwide.
Indosat Ooredoo Hutchison (IDX: ISAT) ("Indosat", "IOH", or "the Company") has reported an outstanding performance in the 12 months ending Dec. 31, 2023, including robust growth in total revenue, EBITDA, EBITDA margin, data traffic, and the number of 4G BTS (Base Transceiver Stations). Total revenue and EBITDA consistently grew in every quarter of 2023.
Indosat recorded a total revenue of Rp 51.2 trillion in 2023, a 10 percent increase compared to the previous year, year-on-year (YoY). The total revenue growth was driven by increased quality of consumer and enterprise customers and positive performance across all Company business lines. Cellular revenue grew by 8.7 percent YoY due to increased data and interconnection revenue. Meanwhile, multimedia, data communication and internet (MIDI) revenue rose by 13.0 percent YoY, supported by increased revenue from IT services and fixed internet. Furthermore, fixed telecommunications revenue also surged by 28.4 percent YoY, driven by increased revenue from international calls and fixed networks.
This revenue growth was accompanied by cost optimization, resulting in positive EBITDA growth of 23 percent YoY to Rp 23.9 trillion. Indosat also achieved a solid EBITDA margin of 46.8 percent, which increased by 4.5 percentage points YoY. With these achievements, the current period normalized profit attributable to the owners of the parent entity reached Rp3.5 trillion and has remained positive for three consecutive years.
Vikram Sinha, President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, stated, "The achievements of Indosat Ooredoo Hutchison in 2023 are attributed to the contributions of all parties, including business partners, customers, shareholders, and all of our employees. This strong financial and operational performance underscores Indosat's commitment to continuously drive the advancement in the telecommunications industry ecosystem in Indonesia. Sensitivity to market dynamics, technology-centric based service innovation, and integrity in operational excellence are keys to navigating business growth and contributing to value creation for our stakeholders."
During 2023, Indosat continued to deepen its relationship with its nearly 100 million customers across both consumer brands, IM3 and Tri, leading to a 5.3 percent increase in mobile average revenue per user (ARPU) to Rp 35,000. The growth in the quality of its customer base was reinforced by an increase in the IM3 customer satisfaction score (CSAT) by four points YoY to 84.1, while Tri CSAT also rose by three points YoY to 84. These results demonstrate the success of Indosat’s Go-to-Market strategy and reflect the marvelous experience the Company provides to customers.
Accelerating the Transformative Journey from Telco to TechCo
Indosat’s transformation strategy from Telco to TechCo achieved important milestones in 2023. To improve service quality and expand connectivity in rural areas, Indosat increased the number of 4G BTS by 30.7 percent YoY to 179,000 sites across Indonesia. Indosat also completed the network integration at more than 46,000 sites in just one year using Multi-Operator Core Network (MOCN) technology. By applying this technology, all Indosat customers, IM3 and Tri, can experience wider network coverage, better indoor service quality, and up to twice as fast internet experience. Better download speeds and lower latency enhance the digital experience for customers for main services like video streaming and gaming. This service quality improvement contributed to strong data traffic growth of 14.8 percent YoY to 14,417 Petabytes (PB).
Indosat’s capital expenditure amounted to Rp 12.7 trillion, most used for cellular business development and expanding network coverage to rural and remote areas. Furthermore, the Company continues to engage in various strategic collaborations with global-scale partners, ranging from the launch of the innovation exhibition center, Indosat Marvelous Xperience (MX) Center, to strategic collaboration in managing high-tech data centers.
On the journey toward becoming a technology company, Indosat continues to develop fixed broadband internet services, including through the acquisition of MNC Play’s customer assets, to strengthen its position in the Home Broadband (HBB) market. The Company recorded an increase in HBB customers to 336,900 by the end of 2023. Meanwhile, Indosat’s own app, myIM3, and bima+ Monthly Active Users (MAU) also surged by 8.6 million YoY to 37.7 million users, reflecting promising digital business potential.
Furthermore, Vikram emphasized Indosat's strategic role in initiating the growth of artificial intelligence (AI)-based data center infrastructure in Indonesia. With its strategic partners, Indosat is determined to advance Indonesia in developing a world-class AI cloud.
“With the adoption of the latest technology supported by collaboration with various parties based on the spirit of mutual cooperation, we will continue our infinite journey in realizing Indosat's grand goal of connecting and empowering all Indonesian society by accelerating the nation's digital transformation," concluded Vikram.
This article is published in collaboration with Indosat Ooredoo Hutchison
