Jakarta, Indonesia – Indosat Ooredoo Hutchison (ISAT), a prominent player in Indonesia’s telecommunications sector, recently unveiled its financial performance for the first half of 2025, revealing figures that largely fell short of market expectations. The results signal a challenging operational landscape, prompting management to recalibrate its outlook for the year.

Profitability Under Pressure

In the second quarter of 2025 (2Q25), Indosat reported a net profit of approximately IDR 1 trillion, marking a significant 29% decline year-over-year (YoY) and a 22% drop quarter-over-quarter (QoQ). This softer 2Q performance pulled the year-to-date (1H25) net profit down to IDR 2.3 trillion, a 15% YoY decrease. Critically, this figure represents only 42% of the consensus 2025 full-year estimates, clearly missing the mark set by analysts.

Operational Hurdles and Revenue Erosion

The operational front also faced headwinds. Operating profit for 1H25 declined by 14% YoY to approximately IDR 4.9 trillion, aligning with the pattern of underperformance against expectations. The primary culprits behind this dip were a 3% YoY decrease in revenue, coupled with a 3% YoY increase in the cost of revenue. This dual pressure squeezed margins, impacting the bottom line.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for 1H25 also saw a 4% YoY reduction, settling at IDR 12.9 trillion. In response to these results, Indosat’s management has prudently revised its 2025 EBITDA growth guidance to a low single-digit increase. This stands in stark contrast to its initial ambitious target of achieving more than 10% growth, signaling a more conservative outlook on the year’s potential.

Subscriber Dynamics and ARPU Stability

Focusing on the mobile segment, Indosat’s Average Revenue Per User (ARPU) for 2Q25 remained relatively stable at approximately IDR 38,500. While this showed no change YoY (+0%) and a slight 2% QoQ dip, the stability in per-user revenue could not fully offset other pressures. The company’s mobile subscriber base, however, contracted to 95.4 million, representing a 5% YoY decline, albeit stable QoQ. This suggests that while individual customer value holds steady, the overall pool of customers is shrinking, adding to revenue challenges.

Investor Outlook: A Revised Trajectory

Indosat’s 1H25 performance paints a picture of a company navigating a tougher economic climate and competitive landscape. The downward revision of EBITDA growth guidance is a key indicator for investors, suggesting a tempered growth trajectory for the current fiscal year. Stakeholders will closely monitor how Indosat adapts its strategies to reignite revenue growth, control costs, and reverse the trend of subscriber attrition in the coming quarters.