PT Indosat Ooredoo Hutchison Tbk

Strong 9M 2026 performance; on track for full-year guidance (good) - Management reported double-digit organic growth in the core business and said results are on track to meet full-year guidance. - Revenue up ~11% YoY; EBITDA up ~9% YoY; normalized net profit up ~11% YoY for the first 9 months of 2026. - Continued momentum in Indosat AI Cloud: ~USD 50m of AI Cloud revenue delivered so far, supporting the “AI-native telco” strategy.

AI ecosystem build-out is the strategic “engine,” with clear scaling milestones (opportunity) - Plan to become a full-stack AI player across connectivity (RAIA Grid), energy/data centers, compute (ZanKore), models, and enterprise applications (Intelligence Suite). - Infrastructure foundations: - RAIA Grid: ~86,000 km terrestrial + undersea cable backbone. - Compute via ZanKore: powered by NVIDIA, targeting ~1 GW by 2029; ~200 MW targeted online in H1 2027. - Secured funding for first 100 MW, with remaining funding expected to close in coming weeks. - Enterprise application monetization: Indosat Intelligence Suite - Platform brings 300+ AI models with a token-based selection layer for governed, cost-predictable usage. - Revenue expectations: start contributing in 2027; target ~USD 100m revenue by 2028 with ~70% EBITDA margin (asset-light margin focus after infrastructure costs).

Core telco remains resilient, but biometric registration created short-term subscriber/quarter pressure (mixed: good + challenge) - Biometric SIM registration: - Management emphasized it is a structural positive (reducing low-quality/duplicate SIM activation) but acknowledged short-term subscriber pressure. - ARPU improved: ~IDR 39k → ~IDR 46k YoY (also ~+16.5% YoY referenced during Q&A). - Data traffic growing strongly (~16% YoY) and home broadband +21% YoY, suggesting underlying engagement is healthy. - Q3 weakness was seasonal + policy-driven: wireless revenues down ~4% QoQ, and cellular revenues were pressured due to biometric KYC regime change affecting customer intake.