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Indosat Ooredoo Hutchison (ISAT) has just released its financial performance report for 2024, which shows revenue growth but faces pressure from increasingly fierce industry competition. With the current share price at the level <\/span> of IDR1,730<\/strong>, is ISAT stock still worth collecting? Let’s dissect more deeply the performance, challenges, and future prospects.<\/span><\/p>\n<\/div>\n ISAT recorded revenue of IDR55.9 trillion<\/strong> in FY24, growing 9.1% YoY<\/strong>. The main contribution came from the cellular services<\/em> and MIDI (Multimedia, Internet, Data) segments, increasing by 1.9% QoQ<\/strong> and 7.5% QoQ,<\/strong> respectively. However, on the other hand, the company lost about 4 million subscribers<\/strong> in the last quarter of the year, bringing the total subscribers down to 94.7 million (-4.1% YoY).<\/strong><\/p>\n Despite the decrease in customer numbers, ARPU (Average Revenue Per User) increased to IDR38.9K<\/strong> (+4.6% QoQ, +1.0% YoY), driven by increased data consumption. EBITDA for 4Q24 fell to IDR6.4 trillion<\/strong> (-3.2% QoQ), but throughout FY24 it continued to grow by 10.2% YoY<\/strong> to IDR26.4 trillion<\/strong>. Unfortunately, ISAT’s net profit in 4Q24 fell 39.9% YoY<\/strong> due to the absence of one-time revenue from tower sales as in 4Q23.<\/p>\n In the last quarter of 2024, ISAT faces severe challenges due to aggressive competitors lowering the price of the starter package. To maintain market share, ISAT launched a variety of more focused promotions.<\/p>\n ISAT also strengthens its presence in the fixed broadband<\/em> segment by offering high-quality services at competitive prices. The company is targeting EBITDA growth of more than 10% in FY25<\/strong>, driven by the expansion of its ARPU and GPU-as-a-service<\/em> business, which is projected to generate revenue of USD35-45 million<\/strong> with an EBITDA margin of around 60%.<\/strong><\/p>\n ISAT remains optimistic about the growth of the telecommunications industry in 2025, with an estimated revenue growth of 4%-5%,<\/strong> higher than 2%-3%<\/strong> in 2024. The company also plans to increase its dividend payout ratio to 70% by 2026<\/strong>, which means shareholders can anticipate dividends of around IDR3.8 trillion<\/strong> with a dividend yield<\/em> of around 7%.<\/strong><\/p>\n Despite the optimism, investors need to pay attention to several risks that could hinder ISAT’s growth:<\/p>\n Although ISAT faces major challenges in 2024, the company’s fundamentals remain solid with a clear strategy for 2025. With our latest price target of IDR2,500<\/strong>, the stock still offers a potential upside of 44.5%<\/strong> from its current price. However, investors still need to pay close attention to industry developments, especially price competition and customer acquisition strategies.<\/p>\n Bagi investor jangka panjang yang mencari saham dengan prospek pertumbuhan, dividen menarik, serta eksposur ke sektor telekomunikasi yang terus berkembang, ISAT tetap menjadi pilihan yang layak dipertimbangkan.<\/p>\n Referensi: Indosat<\/a><\/p>\nFY24 Financial Performance: Revenue Rises, Profit Falls Short of Expectations<\/h2>\n
ISAT’s Strategy Faces Stiff Competition<\/h2>\n
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2025 Prospects: Optimism in the Midst of Challenges<\/h2>\n
Risks to Watch Out for<\/h3>\n
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Conclusion: Are ISAT Shares Worth Collecting?<\/h2>\n