MTEL – 1H24 results

MTEL – 1H24 results In 1H24, Dayamitra Telekomunikasi (MTEL)’s consolidated revenue grew by 7.8% yoy to IDR4,45 tn with tower leasing and fiber optic continuing to be the main driver of growth. Tower-leasing increased by 7.2% yoy to IDR3,70 tn, driven by tower and colocation additions from organic and inorganic activities, including revenue from IOH towers and Gametraco Tunggal towers acquired in 2023. Fiber increased by 104.9% yoy to IDR175 bn due to the organic development of FTTT. MTEL recorded total expenses of IDR2,44 tn which increased by 3.7% yoy, with opex decreased by 2.9% yoy to IDR754 bn. O&M costs decreased by 13.0% yoy to IDR222 bn due to the impact of efficiency, in-line with the company's increasing business scale. EBITDA grew by 10.2% yoy to Rp3,70 tn, with EBITDA margin increased to 83.1% in 1H24 from 81.2% in 1H23. Furthermore, MTEL recorded a net profit of IDR1.06 tn, or an increase of 4.1% yoy, with a net profit margin of 23.9%. (Source : Company). Comment : In qoq basis, MTEL posted an EBITDA of IDR1.86 tn in 2Q24, bringing 1H24 EBITDA to IDR3.70 tn, which met 49.2% of ours and 48.9% of consensus expectations. The figure saw a slight quarterly growth of 0.8% in 2Q24 as cash cost climbed 7.7% qoq due to a combination of higher construction & project management, O&M and G&A costs. Consequently, EBITDA margin contracted from 83.5% in 1Q24 to 82.7% in 2Q24, a decrease of 78.7 basis points. MTEL's 2Q24 net profit increased 4.2% qoq to IDR543.06 bn, primarily driven by a 14.1% qoq decline in finance costs. MTEL's 1H24 bottom-line reached IDR1.06 tn, which came in-line with ours' (51.0%) and cons' (49.6%). We are awaiting management's remarks during the July 30 call. MTEL's 1H24 results largely met our/consensus expectations.