Indosat celebrates 9.1% revenue rise & AI expansion

Indosat Ooredoo Hutchison has reported an impressive financial performance for the full year 2024, highlighting significant growth in revenue and profitability.

The company recorded a 9.1% increase in total revenue year-on-year (YoY), reaching IDR 55.9 trillion (USD $3.4 billion). This growth was attributed to improvements in customer quality and contributions across all business lines. Cellular revenue climbed by 7.5% YoY, driven by an uptick in data and interconnection revenue. Additionally, Multimedia, Data Communication, and Internet (MIDI) revenue rose by 23.4% YoY, supported by enhanced IT services revenue.

EBITDA outpaced revenue growth, increasing 10.2% YoY to IDR 26.4 trillion (USD $1.6 billion), with an EBITDA margin of 47.2%. This performance highlights the company's efficiency in converting revenue into earnings. Normalized profit attributable to owners of the parent grew 38.1%, reaching IDR 4.916 trillion, while reported profit showed a 9% growth, totalling IDR 4.910 trillion.

"2024 was a challenging year, despite this we managed to secure a strong performance as a commitment to continue delivering value to our stakeholders. This strong financial and operational performance also underscores Indosat's commitment to continuously drive the advancement in the telecommunications industry ecosystem in Indonesia," said Vikram Sinha, President Director and Chief Executive Officer of Indosat Ooredoo Hutchison.

During the year, there was a 12.2% YoY increase in data traffic, reflecting rising demand for the company's services. In response, Indosat expanded its network infrastructure, enhancing service quality by increasing 4G BTS sites to 196,000. This network enhancement contributed to a 6.6% rise in Mobile Average Revenue Per User (ARPU) to nearly IDR 40,000.

The company relaunched its IM3 postpaid service under a new identity, IM3 PLATINUM, integrating Artificial Intelligence (AI) with telecommunications to provide a personalised customer experience. This premium service, marketed as "Simple, Next Level," promises an intuitive digital encounter powered by AI.

Indosat is also embedding AI in its network operations to improve connectivity and quality. It has announced a partnership with Nokia to expand its 4G and 5G networks using AI-driven optimization. This collaboration aims to provide more adaptive networks through advanced multiband radios and baseband solutions.

In addition to network improvements, Indosat is committed to fostering digital skills in Indonesia. Through a collaboration with UiPath, the company plans to empower 100,000 Indonesians with automation skills by 2027, supporting an AI-powered economy.

Indosat invested IDR 9.937 trillion in capital expenditure in 2024, with the majority allocated to cellular network enhancements to support growing AI demands. The remaining funds were directed towards MIDI and IT initiatives.

"By embedding AI across our operations and fostering collaborations rooted in the spirit of mutual cooperation, we are accelerating towards Indosat's larger purpose of empowering Indonesia," concluded Vikram Sinha.