PT Sarana Menara Nusantara (TOWR) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 grew 6.5% year-over-year to Rp6.15 trillion, with EBITDA up 4.5–4.6% and net profit attributable to parent rising 9.4% to Rp1.62 trillion.

• Tower count increased to 31,502, while total tenants remained stable at 54,000, resulting in a tenancy ratio of 1.72.

• Fiber assets expanded to 229,572 km, with FTTH home passes reaching 1,211,600 and strong growth in fiber and connectivity segments.

• Non-tower business contributed 34% of total revenue, up from 32% last quarter, driven by fiber leasing and connectivity.

• IBST acquisition completed July 2024; results consolidated from Q3 2024 onward.

Financial highlights

• Consolidated revenue reached Rp6.15 trillion for H1 2024, up 6.5% year-over-year; 2Q24 revenue was Rp3,107.3 bn, up 6.7% year-over-year.

• EBITDA grew 4.6% year-over-year; net income for Q2 was Rp807.7 bn, up 13% year-over-year.

• Gross margin for 2Q24 was 70%, EBITDA margin 83.3%, and net income margin 26%.

• AFFO for 2Q24 annualized at Rp6,391 bn, with a 9.9% CAGR since 2016.

• Gross debt stood at IDR 46 trillion, interest expense at IDR 1.4 trillion, and cash at IDR 2.4 trillion as of June 30, 2024.

Outlook and guidance

• Over Rp74.2 trillion in contracted revenue through 2042, providing strong future revenue visibility.

• Expecting improved performance in Q3 and Q4 2024, especially with IBST consolidation.

• FTTH home passes projected to double from 800,000 at end-2023 to 1.6–1.8 million by year-end 2024.

• Positioned to benefit from ongoing 4G expansion and future 5G rollouts, with continued organic and inorganic growth opportunities.

• Tower relocation process expected to be 70–80% complete by end-2024, with full completion by 2025.