MTEL - Solid 1H24 results, driven by cost savings & co-location growth

KBVS Update
Thursday, 1 August 2024

MTEL - Solid 1H24 results, driven by cost savings & co-location growth
(Reiterate BUY - TP: IDR800)

Despite cost pressures, reports a slight increase in EBITDA for 2Q24. In 2Q24, MTEL recorded an EBITDA of IDR1.86 tn, bringing EBITDA for 1H24 to IDR3.70 tn, which met 49.2% of ours and 48.9% of cons’. EBITDA number saw a slight quarterly growth of 0.8% in 2Q24 as cash cost climbed 7.7% qoq.

2Q24 net profit climbs 4.2% qoq on finance cost decline. MTEL reported a 4.2% qoq increase in net profit to IDR543.06 bn, primarily driven by a 14.1% qoq decline in interest costs. On an annual basis, MTEL's net profit for 1H24 reached IDR1.06 tn, aligning with ours (51.0%) and cons’ (49.6%).

Maintained FY24 financial number forecast. Following inline 1H24 results that met ours/cons’, we maintained our FY24 revenue forecast at IDR9.22 tn, reflecting 7.3% yoy growth.

Reiterate BUY with TP of IDR800, based on 9.5x 2024F EV/EBITDA (-2SD 3yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research