Full Year 2022 Indosat Tbk PT Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst : Congratulations on the good set of results. I hope you can [listen me okay]. So multiple questions from me. First is on the outlook. And Pak Vikram, you said that -- in-line or better than market, so I want to understand. What are your expectations for the industry revenue growth, particularly on REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2023 / 6:00AM, ISAT.JK - Full Year 2022 Indosat Tbk PT Earnings Call the mobile side? And second question is again on the guidance, which is mid-40s on the EBITDA margin, but if I see your exit fourth quarter margins at around 44%, which I hope that the exit margin for the 2022 which -- in the month of December must be even better than that. So just wanted to understand like why it's still a mid-single-digit revenue -- sorry, EBITDA margin guidance. And again on the guidance, which is on CapEx IDR 13 trillion. Is some CapEx being brought forward given that Indosat is tracking ahead on the merger process? So those are my questions. I have some follow-ups but maybe starting with these.

Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst : Great. Maybe, if I can move on to my next set of questions. First is pertaining to the -- to Piyush's question. You said that Indosat is going ahead with a growth mindset, so I just wanted to understand from where that growth will come. (inaudible), i.e., is -- the target is to gain market share, which probably is not a good news because it may come at the cost of some pricing competition. Or do you mean that the outlook is to go into under-indexed areas and try to gain market share over there and possibly try to monetize in the areas like Java where you have better coverage? That's question number one. And the second question is on fixed broadband. [I mean Indosat said that] -- in that fixed broadband aspiration which you discussed last quarter, in the third quarter results, so any update on that side will be helpful. And what portion of the CapEx will go into growing that business?

Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst : This is very clear, but just a follow-up, and apologies if I'm hijacking the call, is that there are macro factors which we -- which telcos in other markets do -- are facing challenges on the back of that. High inflation is one of them. Are then -- are those an issue in Indonesia, in your...

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : Congratulations for the strong net profit. My question is about if you could describe us what was the market in the last -- in the fourth quarter. And perhaps my observation is that the top line is relatively softer given the high seasonality in the fourth quarter. So that's the first part of my question. And the second part, I see that the subscriber base -- maybe I missed the first part of the presentation. You have -- you might have covered this already, but I missed it. And basically I want to check about the subscriber base. It has grown again in the fourth quarter. Do you see more room to grow again in the coming months? And yes, that's the questions.

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : Noted, Pak Vikram. And so when you say rural areas, you're referring to Nusra and maybe like Kalimantan or some other island. That's my follow-up actually and, yes, maybe one more I can squeeze in after this.

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : All right, Pak Vikram. I see that your [resi] BTS is minimized very, very aggressively when you think that you can switch off the 3G network. And maybe the 2G network can follow. What will be the catalyst for you to start switching off the 2G network?

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : I see that the -- yes, the position has improved significantly Q-on-Q. Is there an update about more tower sales in the first quarter 2023 or first half? And can I confirm again from the earlier -- from earlier questions that -- will there be any dividends being distributed for the 2022 financial year?

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : Noted, Pak Vikram. Can I ask, what is the average price of the -- per tower that you are divesting?

Question: Niko Margaronis - PT. BRI Danareksa Sekuritas, Research Division - Analyst : Okay, okay.