PT Indosat Tbk Class B ((PTITF)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of PT Indosat Tbk Class B revealed a mixed sentiment, balancing notable achievements in revenue growth and ARPU milestones against challenges such as a year-to-date revenue decline and increased operational costs. Despite these hurdles, the company expressed optimism about future growth, particularly driven by its AI initiatives.
Quarterly Revenue Growth
The company reported a 4% growth in revenue quarter-on-quarter, driven by all revenue lines. Cellular growth was significant, supported by a stable customer base of 95 million and a 4% increase in ARPU.
ARPU Milestone Achievement
PT Indosat achieved a notable milestone with a 4% quarter-on-quarter increase in ARPU, reaching IDR 40,000. This achievement marks the attainment of a previously delayed target.
Normalized Net Profit Increase
The earnings call highlighted a 29% increase in normalized net profit quarter-on-quarter, showcasing the company’s ability to enhance profitability despite market challenges.
AI TechCo and GPU as a Service
Significant progress was made in the AI TechCo segment, with the GB200 cluster now commercially live and fully contracted. This development is expected to impact revenue starting Q4 2025, aligning with PT Indosat’s strategic focus on AI and network services.
Year-to-date Revenue Decline
The company reported a 1.6% decline in revenue for the first nine months of 2025 year-on-year, attributed to a challenging market environment.
EBITDA Margin Decline
There was a slight decline in the EBITDA margin by 1.4 percentage points to 46.2% quarter-on-quarter, alongside a 3.3% year-on-year reduction in EBITDA.
Increased Operational Costs
Operational costs saw a significant rise, with the cost of services increasing by 4% quarter-on-quarter and personnel costs growing by 17%. G&A expenses also rose by 46% quarter-on-quarter.
Net Profit Decline for First 9 Months
Net profit after tax fell by 7.5% year-on-year, impacted by a softer earnings base and high depreciation expenses.
Forward-Looking Guidance
The company remains optimistic about its financial and operational trajectory, with a 4% quarter-on-quarter revenue growth and a stable customer base. Despite a slight decline in EBITDA margin, the company maintains a healthy net debt-to-EBITDA ratio of 0.49x. The AI TechCo’s advancements, particularly with the GB200 cluster, are expected to contribute to revenue starting Q4 2025, supporting PT Indosat’s strategic growth in AI and network services.
In summary, PT Indosat Tbk Class B’s earnings call presented a balanced view of achievements and challenges. While revenue and ARPU growth are commendable, the company faces headwinds in the form of increased operational costs and a year-to-date revenue decline. However, the strategic focus on AI and network services offers a promising outlook for future growth.