TOWR – 9M24 EBITDA increased by 7.1% yoy

TOWR – 9M24 EBITDA increased by 7.1% yoy Sarana Menara Nusantara (TOWR) recorded a net profit of IDR2.45 tn as of September 2024. This represents a year-on-year increase of 0.89% from IDR2.43 tn. On the top-line, TOWR's revenue managed to grow by 8.37% yoy to IDR9.44 tn during the January-September 2024 period. In the same period of 2023, TOWR generated revenue of IDR8.71 tn. A breakdown shows that tower leasing revenue contributed IDR8.54 tn, representing an 8.28% yoy increase. The contribution of revenue from the tower segment to the consolidated revenue is recorded as stable at around 67%, slightly increasing from the previous quarter at 66% due to the inclusion of results from IBST. Meanwhile, service and other income reached IDR902.58 bn, up 9.22% yoy. Inline with the increase in revenue, several of TOWR's expense items also surged. This Djarum Group entity had to bear a cost of goods sold of IDR2.89 tn, a significant 17.29% yoy jump. As of September 30, 2024, TOWR had total assets of IDR78.84 tn, total liabilities of IDR60.57 tn, and total equity of IDR18.26 tn. (Source : Kontan) Comment : 3Q24 marks the first quarter where TOWR has consolidated its financial results with IBST. The total number of consolidated towers reached 35,371, an increase of 18.2% yoy. The tenancy ratio reached 1.64x due to the consolidation of towers from IBST and the impact of relocations from IOH tower lease contract points to new locations. Its 9M24 revenue of IDR9.45 tn, representing 76.8% of our estimates. We calculated 9M24 EBITDA stood at IDR7.95 tn (+7.1% yoy), which was above ours' (77.3%). Despite net profit growing marginally by 0.89% yoy to IDR2.45 tn, it was inline with ours' at 74% but below the consensus' at 69.8%.