Indosat Ooredoo Hutchison (Indosat or IOH) has once again captivated investors and industry enthusiasts alike with its stellar financial performance in the first quarter of 2024, showcasing strong growth across all fronts. Bolstered by leadership under Vikram Sinha, President Director and Chief Executive Officer, Indosat has not only reported outstanding financial results but has also cemented its position as a trailblazer in Indonesia's technological evolution toward an artificial intelligence (AI) native technology company.
As Indosat embarks on the journey into 2024, buoyed by the successes of FY 2023, the company remains steadfast in its purpose to connect and empower Indonesia.
Leadership Propels Indosat's Soaring Success: Another Quarter of Record Growth
In the first quarter of 2024, Indosat achieved an exceptional 15.8% YoY increase in total revenue, reaching USD873 million, while its EBITDA surged by 22.1% YoY to USD411 million, outpacing revenue growth. This exceptional financial performance underscores Indosat's unwavering commitment to driving viable value for stakeholders and fueling Indonesia's digital economy.
Vikram, in reflecting on the quarter's achievements, emphasized, “Our dedication to creating sustainable value for all Indosat’s stakeholders and to empowering Indonesia’s digital economy. We keep improving to enhance our network to ensure seamless connectivity and a marvelous experience for customers across Indonesia. At the same time, we have doubled down on operational excellence and efficiency, which has enabled us to deliver strong revenue growth, while further improving profitability.”
Indosat's customer-centric approach has borne fruit, with its subscriber base expanding by 2.3% YoY to 100.8 million subscribers by the end of Q1 2024. This surge in subscribers contributed to a commendable 14.3% YoY increase in data traffic, reaching 3,858 Petabytes (PB). Tactical investments in network infrastructure, including a 20.8% YoY growth in 4G BTS to over 184,000, have ensured seamless connectivity and elevated customer experiences, culminating in a 13.9% YoY rise in Average Revenue Per User (ARPU) for cellular customers, which soared to IDR37,500.
Furthermore, Indosat's Outlook was revised to Positive from Stable by the international ratings agency Fitch and affirmed its AA+(idn) credit rating, attesting to its financial health and growth prospects. Inclusion in the LQ45 Index of the Indonesian Stock Exchange further spotlights Indosat's solid financial standing and growth potential in the capital market.
Taking the Lead on Indonesia's AI-Native Transformation
Indosat's ascent as a technology leader reached new heights through groundbreaking collaborations aimed at ushering Indonesia into the era of AI-native innovation. The partnership with NVIDIA, a global leader in AI computing, marks a significant milestone as Indosat becomes the first NVIDIA Cloud Provider Partner in the country. Through this historic alliance, Indosat, alongside its subsidiary Lintasarta, endeavors to democratize access to NVIDIA's cutting-edge AI platform, empowering enterprises with transformative GPU technologies to drive Indonesia's digital economic growth.
The collaboration between Indosat and NVIDIA, announced during the esteemed Mobile World Congress 2024 in Barcelona, marks a watershed moment in Indonesia's pursuit of digital transformation. Through a Memorandum of Understanding (MoU), the two entities pledge to elevate Indonesia's standing in the global AI cloud community, laying the groundwork for the widespread adoption of AI technologies across the country.
Indosat, alongside its subsidiary Lintasarta, plans to introduce NVIDIA's comprehensive AI platform to enterprises nationwide. This initiative aims to democratize access to AI capabilities, fueling economic growth, job creation, and technological innovation. Key figures within Indosat and Lintasarta, including Vikram and Bayu Hanantansena, emphasize the transformative potential of this collaboration in driving Indonesia towards becoming a global AI-powered digital nation.
Indosat aims to utilize the NVIDIA Tensor Core GPU, powered by the Blackwell platform, to accelerate inference workloads and enable real-time performance for language models. This technology, which also includes NVIDIA BlueField-3 DPUs, supports various aspects of cloud computing, such as network acceleration, storage, and security. The NVIDIA Tensor Core GPU will be accessible through the NVIDIA DGX Cloud, facilitating the training of advanced generative AI models.
As Indosat continues to spearhead Indonesia's digital transformation, it remains devoted in its mission to drive sustainable growth, promote innovation, and create lasting value for all stakeholders. With visionary leadership, strategic partnerships, and a relentless pursuit of excellence, Indosat stands poised to shape Indonesia's technological landscape and propel the nation toward becoming an AI-powered digital powerhouse.
Vikram encapsulates this, stating, “Our collaboration with NVIDIA marks a pivotal moment in Indonesia’s journey towards becoming an AI-powered nation. With unwavering determination and a shared vision for success, we stand poised to shape the technology landscape in Indonesia and beyond. Let us continue to innovate, collaborate, and inspire to connect and empower every Indonesian and help turn Indonesia into a digital nation.”
