Indosat Builds on Its Growth Momentum in Q1 2021

1 month ago . 2 min read
Indosat Builds on Its Growth Momentum in Q1 2021
Indosat Builds on Its Growth Momentum in Q1 2021

Indosat Ooredoo recorded strong revenue growth of 13% year-on-year (YoY) in Q1 2021, according to a statement released by Ooredoo Group, its parent company yesterday.

Ooredoo Group’s Q1 2021 results announcement revealed that Indosat had delivered EBITDA growth of 36% YoY, at an EBITDA margin of 51%. Higher top-line revenues and on-going cost optimization measures had contributed to this improvement in EBITDA performance the statement read.

Indosat’s results compare favorably to those of its closest competitor, which announced its Q1 2021 performance earlier this week.

The headwinds that impacted their competitor don’t appear to have impacted Indosat Ooredoo, which has continued to build on the growth momentum its showed in 2020 and has now become the clear number two cellular operator in Indonesia.

At the end of last year Indosat Ooredoo reported accelerating cellular market share gain, recording cellular revenues that matched that of its closest competitor in the final quarter.

Now in Q1 2021 Indosat Ooredoo has continued its top-line growth and expanded its customer base by an extraordinary 7% (YoY) to reach a total of over 60 million subscribers.

"Our commitment to our customers and to providing simple and relevant products has contributed to an increase in our subscriber base and data traffic volume. This growth has translated into an above market increase in cellular revenue", President Director and CEO Indosat Ooredoo, Ahmad Al-Neama, said in a statement earlier this year.

In Q1 2021 Indosat Ooredoo also reported robust growth in data traffic, which rose 4% quarter-on-quarter and 46% YoY. Mobile Average Revenue per User (ARPU) was also up 11% YoY and now matches the closest competitor, which saw an 8% drop in mobile ARPU YoY in the quarter.

Indosat Ooredoo’s stellar performance is the result of its on-going turnaround strategy, which has seen increasing investment in its 4G network to improve performance and greater focus on delivering outstanding mobile digital services to its customers.

The latest milestone in Indosat Ooredoo strategy came in March, when it announced a USD750 million Sale and Leaseback agreement with EdgePoint Indonesia for more than 4,200 of its telecommunications towers. This was the largest deal of its kind in Asia and has unlocked significant capital that the company can use to help fuel its continued growth and subscriber acquisition in the quarters ahead.