TOWR – Records 3.6% growth in net profit for 3Q22

TOWR's 3Q22 earnings grew 3.6% qoq to IDR868 bn, bringing 9M22 earnings to IDR8.11 tn (-0.8% yoy). This translates into 72.4%/71.5% of our/consensus estimates. Meanwhile, 3Q22/9M22 EBITDA grew 3.3%/33.5% to IDR2.4 tn/IDR6.97 tn, accounting for 79.1%/76.3%, largely in-line. On the other hand, the company's 9M22 revenue jumped 33.6% yoy to IDR8.10 tn, translating 79.8%/76.4% of ours/consensus. In quarterly basis, 3Q22 revenue edged up 3.5% qoq to IDR2.10 tn. (Source : Company) Comment: We note that TOWR's 3Q22 performance is mostly in line with our expectation, despite lower tenancy ratio in 3Q22 of 1.85x vs. 2Q22: 1.87x, amid additional tower sites during thr period. It is also interesting to note that higher finance costs has dragged bottom line to be flat in 9M22. We are still waiting for management's insight for comment and outlook.