ISAT – MNC Play internet service has rebranded to Indosat HiFi

ISAT – MNC Play internet service has rebranded to Indosat HiFi Indosat (ISAT) announced that MNC Play has officially transformed its brand to Indosat HiFi as of September 17, 2024. Director and Chief Commercial Officer of Indosat Ooredoo Hutchison, Ritesh Kumar Singh, stated that this migration is evidence of Indosat's commitment to providing a better experience for all stakeholders, including customers, especially for Multimedia, Data Communication, and Internet (MIDI) services. Ritesh believes that this migration can enhance Indosat's focus on delivering the best service and reaching more customers to enjoy quality and reliable home internet. He said in a statement on Wednesday (10/9/2024) that this is in line with Indosat's mission to provide world-class digital services, connecting and empowering all Indonesians. Previously, Indosat, through the Indosat HiFi brand, had acquired MNC Play customers since November 2023 in response to the increasing demand for home internet services amid the rapidly growing digital lifestyle. Currently, Indosat HiFi has expanded its coverage area and improved service quality for customers in Indonesia with a network that covers 60 regions across Indonesia, including Jabodetabek, Bandung, Denpasar, Medan, Semarang, Solo, Surabaya, Yogyakarta and another cities. This expansion not only focuses on major cities but also includes secondary cities with high growth potential, including in strategic industrial development areas. The transition process from MNC Play to Indosat HiFi was carried out without disrupting customer comfort. Customers can continue to enjoy higher quality internet services at the same price. Indosat HiFi offers various internet packages ranging from 30 Mbps to 1 Gbps, designed to meet the needs of all segments, from home users to professionals. In 2023, ISAT acquired 330,000 MNC Play users, boosting its subscriber base by a substantial margin. This acquisition, valued at IDR876.86 bn, was a strategic move to capitalize on the growing demand for home internet services. (Source : Bisnis Indonesia) Comment : We believe that strengthening ISAT's presence in the FBB market is crucial. Indosat HiFi’s subscriber base grew to 346k, driven by the successful migration of approximately 330k MNC Play subscribers. This growth was further supported by ISAT’s expanded FTTH network, which now reaches 1.5 mn homes-passed. ISAT benefits from offering competitive data packages, priced at an average of IDR 2,723/GB—lower than TLKM's IDR 4,021/GB and EXCL's IDR 3,013/GB, leading to notably reduced subscriber churn. Reliable network performance, as recognized by Opensignal, contributed to maintaining a stable subscriber base of 100.9 mn in 2Q24. Additionally, lower-than-expected interest costs in 1H24 are likely to positively impact the FY24 bottom line. Maintain our BUY call with a TP IDR13,000, based on a 4.3x 2024F EV/EBITDA (+0.2SD 7yrs-historical mean).