MTEL - 9M23 earnings miss estimates

MTEL - 9M23 earnings miss estimates Mitratel (MTEL) recorded an EBITDA of IDR1.7 tn in 3Q23, bringing 9M23 EBITDA of IDR5.05tn or achieving 73.0%/72.7% of KBVS/consensus estimates. The figure barely grew 1.4% qoq in 3Q23 as cash cost escalated 12.7% qoq on the back of combination of higher construction and project management +21.3% qoq and G&A + 29.4% on consultant costs. This resulted in lower EBITDA qoq from 80.9% in 2Q23 to 79.3% in 3Q23. Meanwhile, MTEL's 3Q23 attributable net profit plunged 21.7% qoq to IDR408 bn, mainly dragged down by higher finance expenses. MTEL's 9M23 bottom-line reached 71.0%/68.3% of KBVS/Consensus estimates. On the other hand, revenue edged up 3.3% qoq to IDR2.14 tn in 3Q23, bringing 9M23 revenue of IDR6.27 tn or 11.9% yoy, representing 74.5%/73.0% of KBVS/Consensus. (Source: Company) Comment: While we are waiting for management's call for further guidance and details, MTEL's 9M23 results were generally below estimates that mostly caused by higher finance costs yoy. Meanwhile, on quarterly basis, we also saw pressure on cash costs +12.7% qoq.