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Our telco tower coverage (TOWR, MTEL, and TBIG) showed solid 3Q24 performance, with aggregate revenue reaching IDR 7.4tn (+4.5% QoQ, +9.1% YoY). The growth was primarily driven by TOWR (+6.0% QoQ, +12.0% YoY), which gained revenue boost from its recent acquisition of IBST, and MTEL (+5.5% QoQ, +10.5% YoY), attributed to organic tower and tenant expansion, as well as the addition of approximately 2,000 km of fiber optic lines. Meanwhile, TBIG lagged behind the pack, with flattish revenue growth of +0.2% QoQ and +2.4% YoY. On the bottom line, aggregate net profit slightly declined on YoY basis, totaling IDR 1.7tn (+0.9% QoQ, -2.7% YoY), primarily due to higher interest expenses and margin pressures from IBST on TOWR.
We anticipate 2025 to be a promising year for telco tower industry, mainly due to: 1) tight competition among MNOs, which could help boost tenancy ratios; 2) the transformation of Kominfo to Komdigi (Communication and Digital), signaling the government’s strong commitment to digital advancement and penetration; and 3) opportunities to build more towers in uncovered areas, particularly in Eastern Indonesia, as MNOs seek to develop their subscriber base by expanding coverage. Potential downside risks include higher churn rates and discontinuation of lease contracts following the consolidation of EXCL and FREN.
Our pecking orders are TOWR (BUY, IDR 1,160), MTEL (BUY, IDR 780), and TBIG (HOLD, IDR 1,920).
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
