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Indosat Ooredoo Hutchison Records Strong 2021 Profit

Indosat reports its financial results for the fourth quarter and full year ended 31 December 2021. This marks its last financial year prior to its merger with PT Hutchison 3 Indonesia to become Indosat Ooredoo Hutchison (IDX: ISAT ) which was completed in January 2022.

Guided by a three-year turnaround strategy since 2019, Indosat Ooredoo recorded another strong performance in 2021, with total revenue increasing by 12.4% year-on-year (YoY) to Rp31,388.3 billion. EBITDA increased 21.4% YoY to Rp13,885.5 billion, driven by continued top-line growth and ongoing cost optimization initiatives.

Net Profit for the Year attributable to owners of the parent entity was recorded at Rp6,750.9 billion. Cellular revenue jumped 10% (YoY) to Rp25,398.5 billion.

Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, said “We have been able to deliver strong and consistent performance in the last three years due to the focused execution of our turnaround strategy. We at Indosat Ooredoo Hutchison have a strong desire to provide a superior customer experience, which will continue to be our top priority in the future.”

Driven by its focus on customer experience, simple, relevant and transparent execution of product offering strategies, as well as appropriate network capital expenditure investments, the customer base increased by 4.4% to 62.9 million subscribers in 2021. Average Revenue per User (ARPU) also increased to IDR 34.4 thousand, from the previous IDR 31.9 thousand in 2020.

Improved overall network experience and enhanced product portfolio have resulted in data traffic growth of 36.7% YoY. The strong performance in operations reflects growing customer trust in the IOH brand.

As part of Indosat Ooredoo Hutchison's ongoing commitment to accelerate digital transformation, the company has successfully launched 5G commercial services in Solo, Jakarta, Surabaya, Makassar and Balikpapan. It also expanded the reach of video-quality 4G networks across the country, establishing 187 new sites to provide internet connectivity to hundreds of remote villages in Aceh, Sumatra, Kalimantan and Sulawesi.

Throughout the year, Indosat also forged strategic partnerships with global digital players such as Snap, Cisco, and Google to accelerate digitization for consumers and businesses across the country.

Indosat Ooredoo Hutchison's commitment to strengthening its network and driving innovation continues to be recognized by leading international business awards. In the fourth quarter of 2021, it was named a co-winner with Ericsson in the 'Managed Services Innovation' category of the Global Telecoms Awards for their Network Operations Transformation project driven by Artificial Intelligence (AI) / Machine Learning (ML) and Automation.

This project significantly improves the network performance and user experience of the company while building the foundation for the rollout of 5G technology. In addition, the company won the 'Smart City Project of the Year' award at the Asia Communication Awards for its success in pioneering smart city infrastructure and services in Sidoarjo Regency and Mojokerto Regency, advancing Indonesia's dream of becoming a 'Smart Nation'.

Committed to empowering Indonesia's young people and digital talents through its sustainability program in the Digital Education pillar, Indosat Ooredoo Hutchison organized the IDCamp coding scholarship program and succeeded in attracting 46,025 participants. IDCamp has distributed 108,179 online coding scholarships to young Indonesian digital talents since the program was launched in 2019, resulting in 13,226 certified developers.

Meanwhile, through the Women's Empowerment pillar, the company held SheHacks, an innovation program for Indonesian women that utilizes technology to address the challenges of gender inequality. Launched in 2020, to date, SheHacks has empowered 1,548 Indonesian women.

In 2022, Indosat Ooredoo Hutchison, as a newly merged entity and the second largest telecommunications business in the country. With greater scale and power, Indosat Ooredoo Hutchison (IOH) is better positioned to drive innovation and deliver world-class digital experiences and services to customers.

IOH will continue to focus on driving synergies across its assets and network, creating more value for customers and shareholders, and accelerating Indonesia's digital transformation growth. In the long term, the company will support the government in equitable access to digital technology in Indonesia by strengthening network infrastructure by adding 11,400 new sites and expanding network coverage to 7,660 new villages throughout the country, targeted for completion by end of 2025.