TOWR - Mixed 9M23 results, yet shows encouraging non-tower biz

TOWR - Mixed 9M23 results, yet shows encouraging non-tower biz TOWR's 3Q23 EBITDA barely grew 1.1% to IDR2.50 tn, resulting 9M23 EBITDA to increase 6.5% to IDR7.42 tn. This brought 75.6%/74.8% of ours/consensus estimates. Flattish EBITDA followed stabilized top-line growth of 1.1% qoq, making up 9M23 revenue of IDR8.72 tn or +7.6% yoy. The company's revenue was generally in-line with ours/consensus forecasts, helped by non-tower revenue amidst decelerated tower revenue. Nevertheless, TOWR's 3Q23 net profit missed ours/consensus by 3.9-4.8% on higher taxes +29.1% qoq. On the other hand, the company's finance costs declined 8.1% qoq. (Source: Company) Comment: TOWR's 9M23 results were mixed as bottom-line remained under pressure on the back of higher finance costs, although its top-line and EBITDA beat estimates. Nevertheless, TOWR's non-tower revenue consistently showed signs of encouraging growth in 3Q23 as it contributed 32% of its revenue. Meanwhile, TOWR's tenancy ration managed to improve to 1.81x in 3Q23 from 1.80x in a previous quarter thanks to strong growth in net add