ISAT - 9M23 results in-line, analyst call KTA

ISAT - 9M23 results in-line, analyst call KTA Indosat Ooredoo Hutchison (ISAT) 3Q23 EBITDA came in at IDR6.08 tn, growing 23.9% qoq that represented 9M23 EBITDA of IDR17.5 tn. This attained 77.4%/75.0% of ours/consensus estimates. Despite that, EBITDA margin was flat qoq at 47.6% in 3Q23. Meanwhile, ISAT's 3Q23 revenue grew 0.5% qoq to IDR12.8 tn, bringing 9M23 revenue of IDR37.5 tn or increasing 8.5% yoy on the back of cellular data service that was attributable to higher data traffic, resulting in 0.6% qoq/4.5% of ARPU's bump. The company's revenue met 75.5%/73.9% of ours/consensus estimates. Despite that, ISAT recorded a 0.6% qoq decline in subs to 99.4 mn that management reasoned due to combination of seasonality and higher SIM card price as the company shifts focus on customer improvement. During the call, management were optimistic to achieve higher range of expected synergy value of USD400 mn in three years, or ahead of projected estimate of four years as well as maintained their guidance of mid-to-high 40's EBITDA margin. As part of management's asset light strategy, the company is currently exploring possibility to put its 90,000 km fiber asset on sale. Furthermore, management confirmed ongoing talks with MNC Play to acquire assets of MNC Play to accelerate FTTH penetration on a wholesale deal. (Source: Company) Comment: We are still revisiting our model and will provide more details on our company update.