reports
- Chris Hoare
Mitratel (Buy, TP: IDR1,135, +76%) Q3 24 Quick Take: Faster
Mitratel delivered a faster topline and EBITDA trend, backed by healthy colocations and cost efficiencies again. Q4 is expected to slow as the M&A impact from its acquisition of PT Gametraco laps, but given the pace of EBITDA growth thus far (YTD +12%) and consensus at 9% for the full year, the bar is low going into Q4 (implies 2% growth).
- Chris Hoare
Mitratel (Buy, TP: IDR1,135, +73%) Q2 24: YTD EBITDA tracking ahead
Mitratel reported better trends this quarter, supported by its Fiber and Tower operations (acquired 803 towers from PT Gametraco Tunggal in December 2023). EBITDA continue to rise ahead of revenue leading to improvements in margins again. Against consensus and guidance (high-single digit), 1H revenue (+7.7%) is in line while EBITDA (+10%) stays ahead.
- Chris Hoare
EM Towers Q1 CY24 review: Better overall; trimmed price targets for I...
The outperformer this quarter was China Tower, with stronger trends across the board. Indus continues to grow at a faster pace, but we think the market is too optimistic on Indus’ ability to turn this into cash as it is driven by single tenancy towers. In Indonesia the big news is that XL and Smartfren are in talks which has the potential to be significant for both TBIG and TOWR, and so despite better trends we downgrade price targets
- Chris Hoare
- Chris Hoare
EM Tower Trends Q3 CY23 review: Strong in Africa and China; Power dyn...
Amongst our EM Tower coverage, African TowerCos like IHS continue to trend well on topline and EBITDA, with capex expected to come down next FY; topline for Indonesian towers was driven by inorganic growth at Mitratel; China Tower was better on all fronts, with double-digit profit growth again. Indian Towers saw better EBITDA performance on lower bad debt costs, but towers revenue was weaker off Indus’ decline. We see some evidence that Telcos are seeing better bargaining power.
- Chris Hoare
Mitratel (Buy, TP: IDR 1,135, +83%) Q3 23 Quick Take: Acceleration in...
Mitratel reported an acceleration in topline again, supported by inorganic additions in Q3. Despite EBITDA trending slower this quarter, YTD EBITDA performance is still well ahead of guidance. Mitratel is a key beneficiary of the operators’ ex-Java expansion where Tower demand has been faster.
- Chris Hoare
- David Lopes
Indonesia Telcos & Towers – Feedback from Meetings in Jakarta
We came away reaffirmed on the positive outlook for mobile market repair but remain cautious on the competitive dynamics in the broadband space. H2 should be significantly better than a (weak) H1, and Telkom remains our preferred pick in the medium term.
- Chris Hoare
- David Lopes
EM Tower Trends Faster quarter in Africa and Indonesia; IHS’ MTN Nige...
Amongst our EM Tower coverage, African TowerCos like IHS continue to trend well on topline and EBITDA; Indonesian towers reported faster EBITDA growth ahead of topline again; China Tower slowed again as Towers revenue were impacted by MSA renegotiation effective from 2023; its Two Wings business continue to show healthy growth, however. Indian towers reported better numbers, supported by Indus performance as the lower bad debt costs helped offset its higher energy costs.
- Chris Hoare
- Chris Hoare
EM Tower Trends Africa outperforming; Q1 CY2023 review
Amongst our EM Tower coverage, African TowerCos continue to outperform. At this stage, we prefer IHS as it offers the best EBITDA growth profile, coupled with its Project Green and considering that diesel prices in Nigeria are falling, we should see meaningful pull through for the year, despite the recent devaluation of the Naira.
- Chris Hoare
Mitratel (Buy, TP: IDR 1,135, +68%) Q1 23 Quick Take: Decent topline;...
Mitratel reported a decent start, with improved profitability from previous tower M&A trickling down to bottom line, and the benefit of its ex-Java focus becoming very significant relative to the other listed Indonesian Towercos.
- Chris Hoare
- David Lopes
- Chris Hoare
- David Lopes
New Street: EM Towers Q3 CY2022 review: A decent quarter for the EM s...
Q3 was a decent quarter overall for EM Tower companies. In Indonesia, headline growth slowed due to TBIG’s 2012 contract expiration but was otherwise healthy on an organic basis, up mid-single digits. There was a small slowdown in top line trends for Indus and China Tower, but performance was broadly in line with our expectations.
- Chris Hoare
- Chris Hoare
- David Lopes
- Chris Hoare
- Chris Hoare
New Street: EM Tower Trends Decent quarter, continue to prefer Indone...
Tower companies fared decently on the topline but saw pressure on their EBITDA margin in Q1. Indus Towers had a stable quarter; Indonesian towers’ growth continued to supported by acquisitions while China Tower rebounded from its weaker Q4 (due to one-off discounts).
- Chris Hoare
- Chris Hoare
New Street: EM Tower Trends Mixed bag overall but Buy stance reitera...
We rename our Asian Tower Trends review as EM Tower trends following the inclusion of African tower trends. Q4 was a mixed bag for the EM Tower space overall but we remain positive on the space. Indonesia remains our preferred space.
- Chris Hoare
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