This article first appeared on GuruFocus .
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Revenue:Increased by 13.1% year-on-year to IDR30.7 trillion in the first half of 2026.
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EBITDA:Grew by 13.6% year-on-year, with a margin increase of 0.2% to 47.6%.
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Net Profit:Normalized net profit rose by 49.2% year-on-year.
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ARPU:Customer ARPU reached IDR46,000, a 17% year-on-year increase.
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CapEx:Increased by 27.4% year-on-year to IDR9.5 trillion, with a CapEx to revenue ratio of 31.1% for H1 2026.
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Net Debt to EBITDA Ratio:Improved to 0.10x from 0.49x a year ago.
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Fiber Transaction Proceeds:Received IDR11.7 trillion from the fiber transaction.
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AI Neo Cloud Revenue:Recorded USD $33 million in revenue for the first half, targeting USD $100 million for the full year 2026.
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Spectrum Acquisition:Secured 80 megahertz of spectrum with upfront fees of IDR879 billion.
Release Date: July 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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PT Indosat Tbk ( PTITF ) reported strong financial performance with a 13% year-on-year increase in revenue, a 14% increase in EBITDA, and a 49% increase in normalized net profit for the first half of 2026.
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The company successfully closed a fiber transaction, receiving IDR11.7 trillion, which significantly strengthened its balance sheet and improved its leverage position.
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Customer ARPU increased by 17% year-on-year, reaching IDR46,000, indicating effective monetization strategies.
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PT Indosat Tbk ( PTITF ) secured 80 megahertz of spectrum to enhance its 5G experience, supporting the government's ambition to grow Indonesia's digital ecosystem.
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The AI Neo Cloud business recorded USD $33 million in revenue for the first half of 2026, with a target of USD $100 million for the full year, and is expected to generate over $330 million in annual recurring revenue starting 2027.
Negative Points
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The company faced higher personnel costs, which increased by 46% year-on-year, driven by performance-based pay such as bonuses and incentives.
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Depreciation and amortization expenses rose due to investments in network experience and customer contract amortization acceleration.
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Total cost of services and OpEx increased by 12.6% year-on-year, impacting overall profitability.
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Marketing expenses increased by 3% year-on-year, reflecting higher activities to support revenue growth.
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The company anticipates elevated CapEx levels for the next two years due to 5G investments, which may pressure cash flow and financial flexibility.
Q & A Highlights
Q: Can you talk about your 5G rollout strategy and its impact on CapEx for 2027? A: Vikram Sinha, CEO, explained that the 5G rollout is accelerated due to favorable spectrum auction prices, which are 75% lower than previous auctions. The CapEx for 2026 includes significant investment in 5G, and while elevated investment levels will continue into 2027, the CapEx to revenue ratio is expected to drop below 20% by 2028.
Q: Regarding the Neo Cloud, is the CapEx front-loaded in 2026, and what is the contract tenure for the recurring revenue? A: Vikram Sinha confirmed that the CapEx for Neo Cloud is front-loaded in 2026, with no further CapEx required for the $330 million recurring revenue. The contracts are for a minimum of five years, with an option to extend for two more years.
Q: How does the company plan to monetize 5G, especially considering global challenges in 5G monetization? A: Vikram Sinha highlighted that the cost of data production on 5G is lower than 4G, and the device ecosystem is maturing. The company sees significant opportunities in Fixed Wireless Access (FWA) due to low home penetration rates in Indonesia, and expects to see monetization benefits reflected in quarterly results starting Q1 2027.
Q: What are the major payment terms for the spectrum aside from the upfront fee? A: Vikram Sinha stated that the additional CapEx is all cash-based for equipment vendors related to 5G investments. Detailed payment terms for the spectrum will be provided separately by the Head of Investor Relations.
Q: Will the proceeds from the fiber transaction be used for special dividends or shareholder returns? A: Vikram Sinha clarified that the company is focused on investing for growth and will adhere to its existing dividend payment guidance, emphasizing the strong position to invest in future growth opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
