Indosat Ooredoo Hutchison (IOH) reported a decline in profit despite booking growth in total revenue, mobile subscribers and ARPU in its second quarter results.
Net profit for Q2 was IDR3.1 trillion, dipping from IDR5.2 trillion year-on-year, as the company saw a 61.2% rise in operating expenses and a deferred tax impairment charge of IDR167 billion.
Total revenue in the quarter grew 7.2% to IDR11.7, while for the second half revenue was up by 50.3% to IDR22.5 billion. EBITDA in the quarter grew 35.4% year-on-year to IDR9.1 billion.
Mobile revenue grew 59.4% to IDR10.2 trillion alongside the rise in ARPU of 2.9% to IDR35,000. At the end of June, the operator booked 96.2 million subscribers which are up from 60.3 million. The company noted that 4G users increased by 75% to 70 million.
Capital expenditure for the company grew 3.15% to IDR3.9 trillion as LTE base stations grew by 55,000 to 124,000.
The operator was created when Ooredoo’s Indonesia unit and Hutchison 3 Indonesia merged early this year.
Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, said: “IOH officially became Indonesia's second-largest telecommunications operator after merging in early 2022. The company will continue its network integration process with MOCN (Multi Operator Core Network) technology on target, with full support from its strategic partners. Once the process is completed at the end of this year, IOH customers will enjoy a better experience to support their digital activities and lifestyle.