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20230728_ISAT_Laporan Informasi dan Fakta Material_31355089_lamp3.pdf
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28 July 2023
First Half 2023 Results
Total Revenue of IDR24,674.8 bn, 9.5% YoY.
EBITDA of IDR11,383.1 bn, 24.0% YoY. Sustained Net Profit of IDR1,908.4 bn
PT Indosat Tbk. (“the Company”) demonstrated strong financial performance during the first half of 2023, continuing
the upward trend established in the prior year. This is seen in the 9.5% YoY increase in total revenue to IDR24,674.8
billion while EBITDA of IDR11,383.1 billion increased by 24.0% YoY, due to a combination of top line growth and cost
optimization momentum. EBITDA margin stood at 46.1% in 1H 2023. Profit For The Period Attributable To Owners Of
The Parent was IDR1,908.4 billion.
Driven by its approach of providing straightforward and affordable products, along with investment in its network
infrastructure, the Company experienced a 3.9% growth in its customer base, reaching 100 million in the first half of
2023 compared to the same period in the prior year. The growth in the customer base resulted in a modest increase
in Average Revenue per User (ARPU) for the first half of 2023, reaching IDR 34.3 thousand, up from IDR 33.5
thousand in the same period of the previous year.
With the customer base growing, data traffic saw an impressive 16.8% YoY rise in 1H 2023. Concurrently, the
Company has expanded its network infrastructure, boosting the 4G BTS count to 167k in order to effectively manage
the heightened traffic levels.
Financial Highlights
* excluding Right of Use Assets under PSAK 73
The Company recorded a strong quarter in Q2 2023 partially driven by the positive seasonal impact from the Lebaran
festive period. The benefit of The Company’s fully integrated network was crucial to this as the completion of network
integration meant a stronger network to be able to handle the typical spike in traffic seen during the Lebaran season.
Thus, the Company was able to ensure a smooth and consistent customer experience despite the 25% increase in
network traffic seen during the peak of Lebaran festive period.
The Company continues to focus on enhancing the customer experience by not only providing a stable and strong
network connection but also through its value enhancing customer initiatives. This is through improvement of the
Company’s digital applications such as myIM3 and Bima+; unique customer value management tools allowing tailored
value propositions; and expanding Digital Services offerings through partnerships. These are aimed at creating value
for our customers and fostering an increased level of loyalty.
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FIRST HALF 2023
OPERATING AND FINANCIAL RESULTS
The Company has released its audited interim consolidated financial statements for the First Half 2023 (“1H
2023”). The audited interim consolidated financial statements have been prepared and presented in
accordance with Indonesian Financial Accounting Standards (IFAS).
Audited Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income
Key Indicators Annually Quarterly
(in IDR billion) 1H 2023 1H 2022 Growth % 2Q 2023 1Q 2023 Growth %
Revenues 24,674.8 22,526.6 9.5 12,729.8 11,945.0 6.6
• Cellular 21,177.7 19,537.0 8.4 10,919.7 10,258.0 6.5
• MIDI 3,029.3 2,618.0 15.7 1,574.4 1,454.9 8.2
• Fixed Telecom 467.8 371.6 25.9 235.7 232.1 1.5
Expenses (19,909.0) (16,429.4) 21.2 (10,323.2) (9,585.8) 7.7
Operating Profit 4,765.8 6,097.2 (21.8) 2,406.6 2,359.2 2.0
Other Expenses - Net (2,345.4) (2,121.4) 10.6 (1,143.5) (1,201.9) (4.9)
Profit for the Period
Attributable to Owners
of The Parent 1,908.4 3,260.3 (41.5) 979.3 929.1 5.4
EBITDA* 11,383.1 9,177.9 24.0 6,054.0 5,329.1 13.6
EBITDA Margin 46.1% 40.7% 5.4 47.6% 44.6% 3.0
Financial Ratios
Formula 1H 2023 1H 2022
Interest Coverage** EBITDA/Interest Payment 13.79 12.79
Net Debt to EBITDA*** (Debt - Cash & Cash Equivalent)/Total EBITDA 0.45 0.85
* EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-IFAS measure that management believes is a useful
supplemental measure of cash generated prior to debt service, capital expenditures and income tax. Investors are cautioned that EBITDA should
not be construed as an alternative to net income determined in accordance with IFAS as an indicator of the Company’s performance or to cash
flows from operations as a measure of liquidity and cash flows. EBITDA does not have a standardized meaning prescribed by IFAS. The
Company’s method of calculating EBITDA may differ from the methods used by other companies and, accordingly, it may not be comparable to
similarly titled measures used by other companies.
** Calculated using EBITDA and interest payment for the periods ended 30 June 2023 and 2022.
*** Net debt excludes lease liabilities.
AUDITED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Revenues of IDR24,674.8 billion were recorded for 1H 2023, an increase of IDR2,148.2 billion or 9.5% higher
compared to 1H 2022. The Company’s Cellular, MIDI, and Fixed Telecommunication business each
contributed 85.8%, 12.3%, and 1.9%, respectively to the consolidated operating revenues for the period ended
30 June 2023.
• Cellular Revenues increased by 8.4% compared to 1H 2022, attributable to increase in Data and
Interconnection revenue, offsetting with decrease in Voice revenue.
• MIDI Revenues increased by 15.7% compared to 1H 2022, attributable to increase in IT Services and
Fixed Internet, offsetting with decrease in Fixed Connectivity revenue.
• Fixed Telecommunication Revenues increased by 25.9% compared to 1H 2022 driven by increase in
International Call and Fixed Line revenues.
Expenses of IDR19,909.0 billion were recorded for 1H 2023, an increase of IDR3,479.6 billion or 21.2% higher
compared to 1H 2022. This increase was mainly due to increase in Depreciation and Amortization, Personnel,
and decrease in Other Operating Income offset by decrease in Cost of Services, Marketing Expenses, and
General and Administration Expenses.
• Cost of Services: decreased by IDR107.4 billion or 1.0% lower over 1H 2022, mainly due to decrease
in frequency fee, leased circuit, and maintenance offsetting with higher interconnection, SIM cards,
installation, USO, and concession fee.
• Depreciation and Amortization: increased by IDR529.7 billion or 7.9% higher over 1H 2022, mainly
due to impact of depreciation from additional fixed assets from network roll out.
• Personnel Expenses: increased by IDR128.5 billion or 7.3% higher over 1H 2022 mainly due
to increase in employee salary, bonus and employee income tax expenses.
• Marketing Expenses: decreased by IDR68.8 billion or 10.5% lower over 1H 2022, mainly
due to decrease in channel marketing, marketing agency, and join marketing cost offset
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by higher advertising, exhibition, promotion, and subscriber acquisition cost, as impact from higher
activities to support revenue growth.
• General and Administration Expenses: decreased by IDR9.3 billion or 2.6% lower over 1H 2022
mainly due to decrease in provision for impairment of trade receivables, insurance, and administrative
expenses as part of ongoing cost optimization initiatives offset by higher professional fees and
transportation expenses.
• Other Operating Income: decreased by IDR3,006.9 billion or 82.8% lower over 1H 2022 mainly due to
gain associated with the loss of control of a subsidiary in 1H 2022 offset by net gain on assets sale and
leaseback of towers in 1H 2023.
Other Expense - net: The Company recorded expenses of IDR2,345.4 billion, increased by IDR224.0 billion
or 10.6% higher over 1H 2022. This increase was due to higher finance costs by IDR236.1 billion mainly due
to higher finance charges under lease liabilities, and higher loss on foreign exchange by IDR 149.4 billion,
offset by increase in interest income by IDR161.6 billion.
Profit for the Period Attributable to Owners of the Parent: The Company recorded net profit of IDR 1,908.4
billion, decreased by IDR 1,351.9 billion primarily due to decrease in other operating income, increase in
depreciation and amortization, and increase financing cost offset by increase in revenue and decrease in cost
of services.
AUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Key Indicators (in IDR billion) 1H 2023 FY 2022* Growth %
ASSETS
Current Assets 14,585.3 18,683.1 (21.9)
Non-Current Assets 95,310.2 94,974.2 0.4
TOTAL ASSETS 109,895.5 113,657.3 (3.3)
LIABILITIES
Current Liabilities 32,586.0 35,874.0 (9.2)
Non-Current Liabilities 46,242.1 46,414.7 (0.4)
TOTAL LIABILITIES 78,828.1 82,288.7 (4.2)
TOTAL EQUITY 31,067.4 31,368.6 (1.0)
TOTAL LIABILITIES & EQUITY 109,895.5 113,657.3 (3.3)
*as restated, see Note 36 to Interim Consolidated Financial Statements
• Current assets decreased by 21.9% to IDR14,585.3 billion, mainly due to a decrease in cash and cash
equivalent, and decrease in prepaid frequency fee and licenses due to amortization offset by increase in
trade receivables.
• Non-current assets increased by 0.4% to IDR95,310.2 billion, mainly due to increase in fixed assets
offset by decrease in long-term prepayments.
• Current liabilities decreased by 9.2% to IDR32,586.0 billion mainly due to decrease in current maturities
of long-term debt, accrued expenses, taxes payable, and unearned revenues, offset by higher accounts
payable.
• Non-current liabilities decreased by 0.4% at IDR46,242.1 billion mainly due to lower non-current
portion of loans and bonds payables offset by higher obligation under finance lease.
Cash Flow and Capital Expenditure
Key Indicators (in IDR billion) 1H 2023 1H 2022 Growth %
Net Cash Flows Provided by Operating Activities 8,482.0 7,500.3 13.1
Net Cash Flows Used in Investing Activities (3,122.2) (1,285.0) 143.0
Net Cash Flows Used in Financing Activities (9,399.7) (3,254.6) 188.8
Net Foreign Exchange Differences from Cash and Cash Equivalents (126.7) 63.5 (299.4)
Net (Decrease) Increase in Cash and Cash Equivalents (4,166.6) 3,024.2 (237.8)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 9,507.9 3,789.0 150.9
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 5,341.3 6,813.2 (21.6)
Capex in 1H 2023 amounted to IDR4,300.8 billion (excluding IDR4,467.8 billion of Right of Use Assets).
Approximately 90.9% of the Capex was allocated to cellular, to support data services demand and the
remaining balance was allocated to MIDI, infrastructure and IT Capex.
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STATUS OF DEBT
Total outstanding debt: As of 30 June 2023, the Company had total outstanding gross debts (excluding
unamortized transaction costs and lease liabilities) of IDR15,098.0 billion. The Company’s cash position as at
30 June 2023 stood at IDR5,341.3 billion and net debt is at IDR9,756.7 billion. The composition of the
Company’s gross debt, excluding lease liabilities, is as follows:
Debt Proportion (Principal amount) 1H 2023 FY 2022 Growth %
IDR Loans (billion) 7,600.0 13,727.3 (44.6)
IDR Bonds (billion) 7,498.0 7,596.0 (1.3)
Total maturing debt: in the next twelve months, IDR1,417 billion of the Company’s debt is maturing. The
average tenor of debt is 3.1 years as of 30 June 2023.
OPERATIONAL RESULTS
Annually Quarterly
Key Indicators
1H 2023 1H 2022 Growth % 2Q 2023 1Q 2023 Growth %
Customers - Postpaid (million) 1.6 1.6 0.2 1.6 1.6 (0.4)
Customers - Prepaid (million) 98.4 94.6 4.0 98.4 96.9 1.5
Customers - Total (million) 100.0 96.2 3.9 100.0 98.5 1.5
ARPU (Postpaid) (IDR thousand) 70.0 65.1 7.6 71.6 68.4 4.5
ARPU (Prepaid) (IDR thousand) 33.8 33.0 2.4 35.2 32.4 8.7
ARPU (Blended) (IDR thousand) 34.3 33.5 2.5 35.8 32.9 8.6
MoU (minutes) 7.6 12.3 (38.4) 7.3 7.9 (6.9)
Data Traffic (TB) 7,195,879 6,160,270 16.8 3,739,211 3,456,668 8.2
SMS Traffic (bn) 1.7 1.5 16.4 1.1 0.6 75.4
In 1H 2023 the company experienced significant growth in its cellular customer base, reaching a total of 100.0
million customers. 1H 2023 customer number increased by 3.8 million customers compared with 1H 2022.
ARPU for cellular customers in 1H 2023 stood at IDR34.3 thousand or IDR0.8 thousand higher compared to
1H 2022.
Average Minutes of Usage (MOU) per customer decreased to 7.6 minutes, a 38.4% decrease compared to
1H 2022 in-line with the decrease of industry trend related of traditional voice services.
NETWORKS
As of 30 June 2023, the Company has operated ~167K 4G BTS (adding ~43K 4G BTS during 1H 2023) and
90 5G BTS.
Annually
Key Indicators
1H 2023 1H 2022 % Change
Base Transceiver Stations (BTS) 2G 48,860 48,581 0.6
3G - 26,013 (100.0)
4G 166,536 123,901 34.4
5G 90 72 25.0
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ESG FRAMEWORK: DRIVING SUSTAINABLE GROWTH
The Company believes that businesses have a vital role to play in creating a better and more sustainable
world. Guided by Company’s mission to “connecting & Empowering every Indonesian”, the Company
maintains its strong commitment to have positive social impact with our Environmental, Social, and
Governance (ESG) framework, fueling sustainable growth and positive impact in Indonesia's
telecommunications landscape. Our ESG strategy rests on three pillars:
1. Practicing Environment Safeguard: We are deeply committed to reducing greenhouse gas emissions
and fostering sustainability. Our approach includes behavior changes to lower energy consumption, such
as installing solar panels, high-efficient batteries, intelligent cell sleep mode at mobile base stations.
These eco-conscious practices reduce our carbon footprint, driving a more sustainable future for
Indonesia and aligning with global climate change efforts.
2. Enhancing Social Impact: We harness the power of digital initiatives to uplift communities, bridging the
digital divide across Indonesia and promoting gender diversity in our leadership. Our social responsibility
drives inclusive development and empowers individuals.
3. Responsible Corporate Governance: We are actively working on strengthening our privacy and data
protection systems to ensure its alignment with the high standards we strive to uphold. We recognize the
paramount importance of having robust measures in place to safeguard the privacy and data of our
customers and stakeholders.
Through these pillars, we are resolute in our pursuit of sustainable growth and a brighter, inclusive future for
Indonesia and beyond, creating long-term value for our stakeholders.
About Indosat Ooredoo Hutchison
Indosat Ooredoo Hutchison (Indosat, IDX: ISAT) has the vision to become the most preferred digital telecommunications company in Indonesia.
Together with its subsidiaries and affiliates, Indosat provides cellular services, ICT solutions, data centers, Fiber to the Home (FTTH), electronic
payment services, financial services, and other digital services. Indosat has a bigger goal of empowering Indonesia. And with the spirit of Gotong
Royong, Indosat wants to be the main collaborator in realizing goals and creating meaningful change.
Ticker: ISAT; Closing Price: IDR8,625; Market Capitalization: IDR69.5 trillion; Ratings: Pefindo idAAA (Stable);
Fitch AA+(idn) (Stable); USD Rate: IDR15,026
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AUDITED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For The Six-Month Periods Ended 30 June 2023 and 2022
(Expressed in Billions of Rupiah)
Growth
Description 2023 2022
(%) (1)
REVENUES
Cellular 21,177.7 19,537.0 8.4
Multimedia, Data Communication, Internet (“MIDI”) 3,029.3 2,618.0 15.7
Fixed Telecommunications 467.8 371.6 25.9
TOTAL REVENUES 24,674.8 22,526.6 9.5
(EXPENSES) INCOME
Cost of Services (10,472.4) (10,579.8) (1.0)
Depreciation and Amortization (7,241.1) (6,711.4) 7.9
Personnel (1,885.8) (1,757.3) 7.3
Marketing (587.0) (655.8) (10.5)
General and Administration (346.5) (355.8) (2.6)
Net Gain on Assets Sale and Leaseback 722.4 - 100.0
Share of Net Loss of Associates and Joint Ventures (63.9) (75.3) 15.1
(Loss) Gain on Foreign Exchange - net (0.8) 9.3 (108.1)
Gain Associated with the Loss of Control of a Subsidiary - 3,580.3 (100.0)
Amortization of Deferred Gain on Sale and Leaseback of Towers - 71.8 (100.0)
Others - Net (33.9) 44.6 (175.9)
TOTAL EXPENSES (19,909.0) (16,429.4) 21.2
OPERATING PROFIT 4,765.8 6,097.2 (21.8)
Interest Income 190.4 28.8 561.7
Finance Cost (2,433.9) (2,197.8) 10.7
(Loss) Gain on Foreign Exchange - net (101.9) 47.5 (314.7)
Gain on Change in Fair Value of Derivatives - net - 0.1 (100.0)
OTHER EXPENSES - Net (2,345.4) (2,121.4) 10.6
PROFIT BEFORE INCOME TAX 2,420.4 3,975.8 (39.1)
INCOME TAX EXPENSE (376.5) (408.9) (7.9)
PROFIT FOR THE PERIOD 2,043.9 3,566.9 (42.7)
PROFIT FOR THE PERIOD ATTRIBUTABLE TO:
OWNERS OF THE PARENT 1,908.4 3,260.3 (41.5)
NON-CONTROLLING INTERESTS 135.5 306.6 (55.8)
TOTAL 2,043.9 3,566.9 (42.7)
1) Percentage changes may vary due to rounding.
Disclaimer
This document contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of
Indosat Ooredoo Hutchison, that are not statements of historical fact which would be treated as forward-looking statements within the meaning of applicable
law. Forward looking statements are subject to risks and uncertainties that may cause actual events and Indosat Ooredoo Hutchison's future results to be
materially different than expected or indicated by such statements. No assurance can be given that the results anticipated by Indosat Ooredoo Hutchison, or
indicated by any such forward looking statements, will be achieved.
The financial information provided herein is based on Indosat Ooredoo Hutchison’s consolidated financial statements in accordance with Indonesian Financial
Accounting Standards.
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