Expenses Rise, Indosat's Profits Drop 30 Percent Throughout 2022

Indosat illustration (Photo: Doc. Antara)

JAKARTA - PT Indosat Ooredoo Hutchison Tbk (ISAT) recorded a decrease in net profit for the year attributable to owners of the parent entity by up to 30 percent.

According to the disclosure of information, the Company recorded an operating profit of IDR 4.72 trillion in 2022. This amount decreased when compared to the previous year at IDR 6.75 trillion.

This decrease was due to an increase in operating expenses, an increase in depreciation and amortization expenses, and an increase in financial costs as a result of the merger of the two companies which was offset by an increase in revenue.

Meanwhile, the total revenue is IDR 46.75 trillion in 2022. This amount has grown 48.9 percent year on year (yoy) compared to the previous year.

When broken down, the company's cellular services, Multimedia, Internet and Data Communication Services (MIDI), and Fixed Telecommunication contributed 86.1 percent, 12.2 percent, and 1.7 percent respectively to the consolidated operating revenues.

Then, income before interest, taxes, depreciation, and amortization or EBITDA was recorded at IDR 19.46 trillion, up 40.2 percent yoy, with an EBITDA margin recorded at 41.6 percent throughout l 2022.

With the strength of the two brands and the business merger, the company's subscribers increased by 62.5 percent yoy to 102.2 million customers in 2022.

This increase in subscribers had a slight impact on the decrease in the Average Revenue per User (ARPU), which became IDR 33.9 thousand in 2022, from the previous IDR 34.4 thousand in 2021.

The expansion of the customer base resulted in data traffic growth of 91.8 percent yoy over the past year.

In addition, the company's network coverage also increased in line with the increase in the number of 4G BTS which reached 137 thousand, so it was able to handle the high increase in traffic.

Furthermore, capital expenditure of IDR 12.01 trillion does not include IDR 10.02 trillion of usufructuary assets in 2022.

About 93.3 percent of the capital expenditure is allocated to the cellular business to support demand for data services, and the remainder is allocated to capital expenditure for MIDI, infrastructure, and IT.

As of December 31, 2022, the company had principal debt excluding unamortized transaction costs and rental liabilities of IDR 21.32 trillion, and the company's cash position was IDR 9.5 trillion, with net debt of IDR 11.81 trillion.