PT. Indosat Tbk.
49
th
Anniversary
Leading the market with innovations
High-impact and distinctive branding
Simplified and superior customer experience
Financial and
9M16 YoY Overview
Consolidated Revenue increased 9.9%
from IDR 19,582 billion to IDR 21,525 billion
EBITDA increased 10.5% from IDR 8,568
billion to IDR 9,466 billion, EBITDA Margin
reached 44.0%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 1,122 billion to
a profit of IDR 845 billion
3Q16 QoQ Overview
Consolidated Revenue increased 6.4%
from IDR 7,129 billion to IDR 7,583 billion
EBITDA increased 11.2% from IDR 3,080
billion to IDR 3,425 billion, EBITDA Margin
reached 45.2%
Profit Attributable to Owners of The Parent
increased 97.9% from IDR 211 billion to IDR
417 billion
Operating Revenue
EBITDA
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
21,525
in IDR billion
19,582
8,568
43.8%
-1,122
Financial Highlights
•
Strong growth in revenue combine with successful cost control initiative and stable
currency rate contribute to strong growth in EBITDA and positive bottom line.
7,129
3,080
43.2%
921 997 909 989 1044
272 286 228 226 238
in IDR billion
+6.4% QoQ +8.9% YoY
Cellular Fixed Data
Fixed Voice
+5.3% / -12.8%
Operating Revenue Breakdown
5,904 6,962
Segment Revenue Overview
1Q-16 7,187
5,676 6,813
2Q-16
•
Quarterly cellular revenue in 3Q-16 grew due to seasonality
–
Ramadan and Hajj.
•
Initiative in fixed data segment to provide IT service that was launched back in 1Q-16
started to deliver a result to support revenue growth.
3Q-16 5,914
7,129
Voice
13.2%
Digital business initiatives pushed VAS
revenue growth
Cellular Revenue Performance
- Healthy growth in all services YoY and
QoQ.
69.0 69.7 69.8
80.5 81.6
3Q-15
+18.3% YoY +1.4% QoQ
Number of cellular customers
in million3Q-15 in million
0.5 0.8 0.1
10.7
1.1
4Q-15 4Q-15
Net cellular customers additions
•
Momentum continued due to Ramadan and Hajj season, raised number of data
users.
1Q-16 1Q-16
Cellular Customer Base
ARPU and ARPM
Voice Traffic and MOU
•
ARPU slightly declined on QoQ basis due to aggressive campaign in ex-Java market.
However, ARPU as of 9M-16 YoY maintained.
70 76 69 71
Voice Traffic in billion minutes (Voice Traffic)
in minute/subscriber (MOU)
ARPU maintained
Data Usage
SMS Delivered
•
Data traffic spiked due to aggressive campaign during Ramadan and Hajj season.
•
SMS traffic continued to decline as trend shifting toward messaging application.
6259
52 55
49
55,871 57,276 63,987
93,641
146,060
in TByte
+56.0% QoQ +161.4% YoY
3Q-15
in billion
-21.2% YoY -11.6% QoQ
4Q-15 1Q-16 3Q-15 4Q-15
Strong Data Usage
1Q-16
•
Cost of Service (CoS)
Depreciation and Amortization
Personnel
Marketing
as percentage of revenue
General and Administration
Total Expenses
Total Operating Expenses
3Q-15
Operational expenses
3,205
2,906 2,961 3,080 3,425
EBITDA and EBITDA margin
+11.2% QoQ +6.9% YoY
EBITDA in IDR billion
EBITDA Margin 3Q-15
Quarterly EBITDA in 3Q-16 in line with
guidance.
4Q-15 46.0%
EBITDA performance
1Q-16 40.4% 43.5%
Net profit
Improvement in operational level combine
with stable currency movement and low
USD debt resulted positive net profit.
-1,330
-1,122
845
+175.3% YoY +15.6% YoY
9M-16 9M-15
9M-14* in IDR billion
25,676 27,002
Gross debt* and gross debt/EBITDA
Net debt* and net debt/EBITDA
•
Gearing level continuously improved
•
US debt portion has come down to 12% level
* IDR 3.95tn, IDR 4.24tn and IDR 3.46tn of obligation under finance lease are included in 9M14, 9M15 and 9M16 respectively
9M-15
9M-14 9M-16
-13.1% YoY
Gross Debt in IDR billion
Gross Debt/EBITDA
9M-16
9M-14 9M-15
Net Debt Net Debt/EBITDA
in IDR billion
Balance sheet
-9.3% YoY
2.57
2.45
26.8
Free cash flow
Capex and Capex/Revenue
•
FCF is steadily growing, supported by improved operating CF generation and
in IDR billion1,161 in IDR billion
Capex/Revenue 4Q-15*
4Q-15
1Q-16
1Q-16
Free cash flow & Capex
2Q-16
2Q-16
in %
3Q-16
3Q-16
Number of BTS
Data User
•
4G coverage has reached 94 cities and counting
•
Data users are steadily growing with 1.3Gb/month usage on average.
23,525 23,596 23,714 23,793 23,859In million
3Q-15
Network & Data User
Competition in Data today
•
We observe a trend of decreasing data
yields in the market with Indosat data
yields also significantly decreasing over
the last two quarters.
•
The yield reduction reflects the
intensifying competition in the market with
major players offering significant bonus
quotas of data to secure market share.
•
Starting in 4Q-16 Indosat Ooredoo is
reducing the bonus quotas of data from
the currently high levels to more moderate
levels to effectively bring the data yields.
We hope that the other market players will
also realign behind this positive trend and
contribute to a healthier and more rational
market.
in IDR / MB
RPMB*
* RPMB: Revenue Per Megabyte
33.1
30.9
34.2 32.8
27.6
17.7
Management Focus
●
Continue to transform Indosat Ooredoo to
become the leading digital telco in
Indonesia, both from a product offering
perspective as well as the way it interacts
with its stake holders
●
Continue to build operational excellence
and efficiency as part of the company
culture
●
To explore industry synergies to become
more efficient and effective
9M-16
Actual
FY 2016
Guidance
Consolidated Revenue Growth
9.9%
In line with market
EBITDA Margin
44.0%
Low to Mid
40’s
CAPEX
IDR 5.7 trillion
IDR 6.5
–
7.5 trillion
Thank You
Investor Relations & Corporate Secretary
Jl. Medan Merdeka Barat No. 21
Jakarta - 10110
Tel: +62 21 30442615
On September 16, 2014, the South Jakarta Attorney Office (“Kejaksaan Negeri Jakarta Selatan”), without preliminary notification, executed the Supreme Court’s Decision on Mr. Indar Atmanto. The execution was losses sustained by the State amounting to Rp1,358,343,346,674,-.
Subsequently, on January 16, 2015, Mr.Indar Atmanto and/or his lawyer or IM2 received the document on the Supreme Court’s decision regarding the litigation case. As of the issuance date of the consolidated financial statements, Mr. Indar Atmanto and IM2 plan to conduct further legal act by submitting a reconsideration request peninjauan kembali
(”PK”).
On March 16, 2015, Mr. Indar Atmanto’s submission of Judicial Review [Peninjauan Kembali (”PK”)] was officially registered at the Corruption Court under No. 08/AKTA.PID.SUS/PK/TPK/2015/PN.Jkt.Pst.
On November 4, 2015, the Supreme Court’s official website announced that the Judicial Review filed by Mr. Indar Atmanto was rejected based on Supreme Court’s decision dated October 20, 2015. However, no detailed information regarding the exact content of such Supreme
Court’s decision was available. As of the issuance date of the interim
On 25 January 2016, Standard & Poor's Ratings Services (“S&P”) affirmed its 'BB+‘ long-term corporate credit rating on PT Indosat Tbk. The outlook is positive. S&P also affirmed their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based telecommunications company. S&P affirmed the rating because they expect Indosat to maintain its solid No.2 position in Indonesia's growing cellular market. The positive outlook reflects their view that the company's financial risk profile will improve over the next 12-18 months.
On 12 August 2016, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk (ISAT) and its Shelf Registration Bond I/2014-2016 including its proposed fourth phase issuance of up to IDR3.2 trillion; Bonds V/2007 Serie B; Bonds VII/2009 Serie B; and Bonds VIII/2012. PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s Shelf Registration Sukuk Ijarah I/2014-2016, including its proposed fourth phase issuance of up to IDR288 billion; Sukuk Ijarah IV/2009 Serie B; and Sukuk Ijarah V/2012. The outlook for the corporate rating is “stable”.
On 1 June 2016, Moody's Investors Service has affirmed Indosat Tbk. (P.T.)'s Ba1 corporate family rating. At the same time, Moody's has changed the rating outlook to positive from stable. The change in outlook to positive reflects the substantial improvement evident in Indosat's operational and financial profiles, with the company -- over the last four quarters -- reporting YoY revenue growth of 11%-13%, above the sector average in Indonesia of about 9%.
On 15 March 2016, Fitch Ratings has upgraded the Long-Term Local-Currency Issuer Default Rating (LC IDR) of Indonesia’s second-largest telecommunications operator, PT Indosat Tbk (Indosat Ooredoo), to ‘BBB+’ from ‘BBB’. The agency has simultaneously affirmed Indosat Ooredoo’s Long-Term Foreign-Currency IDR (FC IDR) and its foreign-currency senior unsecured rating at ‘BBB’. Fitch has also affirmed the National Long-Term Rating at ‘AAA(idn)’. The Outlook on the ratings is Stable.
0.08
In IDR trillion
2020
* Excluding obligation under capital lease
2023
Debt maturity profile*
Number of BTS
* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku
