Good day and thank you for standing by. Welcome to the PT Indosat F irst Half 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question- and- answer session. To ask a question during this session, you will need to press star one-one on your telephone. You will then hear an automated message advising you your hand is raised. To withdraw your question, please press star one-one again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Indar . Please go ahead.
Thank you, Michelle. Good afternoon, everyone, and thanks for joining us today. With us on the call today, we have Vikram Sinha, our Chief Executive Officer, Nicky Lee, our Chief Financial Officer, and Vivek Mehendiratta, our Chief Marketing Officer. I will now hand over the call to Vikram for his opening remarks. Over to you, sir.
Thanks, Indar, and good afternoon, everyone. Let me start my presentation by sharing with you the highlight of our Q2 performance. Despite a challenging market environment continuing in the second quarter of the year, we managed a solid set of numbers for the quarter with our focus on customer engagement and profitability. Our customer number remained steady at close to 96 million despite the SIM price increase, while we saw an increase in our own app users, which is evidence of the success of digital engagement strategy. This quarter was tough in terms of seasonality, being the post-Lebaran Festival season. As a result, we saw a moderate decrease in revenue and ARPU, but overall, both are still holding up well. Importantly, our EBITDA increased by 0.4% quarter-on-quarter, and EBITDA margin was also higher to 47.6% as part of our focus of making sure we deliver on profitability.
If you look at the next slide, the first half of the year was important to establish more rational behavior in the market with several market correction measures. These include rising of the SIM price, removal of freebies, and discount, which our CMO, Vivek, will talk in greater detail in his presentation. Market consolidation is also a positive and helping to promote more rational behavior. Finally, for IOH, we are seeing that our AI engine is powering our growth with better customer engagement and optimization. All these factors will drive our growth in the second half of 2025. If you go to the next slide, we continue to play our role in shaping Indonesia's future in connectivity and AI. Thus far, this year, we have spent $400 million in CapEx, adding more than 20,000 BTS till date.
This has also been recognized by external parties such as Opensignal, where we have scored well on the experience matrix as part of our mantra on an experience-first approach. Our role as the key part of the AI ecosystem for Indonesia continues with the establishment of Indonesia AI Center of Excellence in collaboration with COMDIGI, NVIDIA, and Cisco, in line with our commitment to develop AI in Indonesia. Looking at the next slide, continuing the theme of AI, we are seeing strong momentum on our AI-driven tech core, which continues to gain traction in the market. We are on track to deliver $35 million in net new revenue for 2025, which will meaningfully contribute from the second half of 2025. Our GB200 Blackwell is now operational, and we are one of the first to go live in Asia on GB200.
We now have more than 20 customers on our sovereign AI cloud business. Everything that is connected must be protected, and hence, we have built a security operations center along with Cisco, which will add to our security stack. That ends my introduction, and I'll now hand over to Nicky for a more detailed financial presentation. Over to you, Nicky.
Thank you, Vikram. I am delighted to report a solid set of numbers for the first half, given the challenging market environment so far in 2025. If we move on to the... Yes, move on to our financial performance slide. Overall revenue for Q2 remained resilient at IDR 13.5 trillion. It declined by 0.3% due to lower spending post-Lebaran period. We have sustained our cost leadership strategy to drive growth and enhance profitability, achieving a 1% quarter-on-quarter reduction in total cost of sales and operating expenses. This helped to uplift EBITDA by 0.4% and EBITDA margin by 0.4% quarter-on-quarter. If we move down to net profit, we deliver a normalized net profit above IDR 1 trillion. This was 11.5% lower quarter-on-quarter due to one-off operational other income of IDR 180 billion in Q1, which stemmed largely from disposal of dismantled assets and early site terminations.
If we would exclude this non-recurring item, net profit would have been higher by approximately 5% on a quarter-on-quarter basis. The final line on this slide, net debt to EBITDA ratio increased by 0.13x to become 0.49x, primarily driven by continued CapEx investments to deliver mid to long-term growth. Let's move on to the next slide. As highlighted earlier, in the first half of this year, reported revenue declined by 3.1% year-on-year, reflecting a challenging market environment so far this year. This revenue contraction contributed to a 4.2% year-on-year reduction in EBITDA. As a result, EBITDA margin dropped 0.5% to 47.4%. The margin decline was partially offset by ongoing cost leadership efforts, which helped preserve profitability amid top-line headwinds. The bottom line reflected a similar trend, with reported net profit declining by 14.6%, while [Y] to IDR 2.3 trillion.
This again was largely the impact coming from software revenue and a small increase in depreciation and amortization expense during the period. Moving on to cost, in the second quarter 2025, we further sharpened our focus on cost leadership to support growth, resulting in improved spending discipline across most cost categories. This led to a 1% quarter-on-quarter reduction in total costs. On a year-on-year basis, total cost of services and operating expenses declined by 2% compared to the first half of 2024, underscoring our continued commitment to cost discipline and prudent cost management. We also benefited from operational one-offs for vendor credits and certain cost reversals. On cost of sales, we experienced a 2% quarter-on-quarter increase, primarily due to increased installation and partnership costs linked to median VAS revenue performance.
On a year-on-year basis, the cost of sales saw a 4% increase, mainly due to higher partnership costs associated with wholesale business, international [SMA2P] content provider cost, and installation costs, which were in line with the corresponding revenue movements. Personnel costs reduced by 14%, mainly driven by lower bonus and incentives. On a worldwide basis, personnel costs declined by 23%, reflecting the same underlying factors. Onto marketing expenses, it declined by 10% quarter-on-quarter, primarily due to the seasonal impact of higher spend for Ramadan and Lebron campaigns in the first quarter. Comparing to last year, our marketing spend decreased by 19%, reflecting a shift toward more targeted and cost-effective digital marketing initiatives. G&A expenses reduced by quarter-on-quarter and year-on-year by 10% and 13% respectively, primarily due to lower professional fees and public relations expenses, again reflecting our efforts on cost control.
Depreciation and amortization expenses up by 3% quarter-on-quarter and year-on-year respectively, primarily driven by the addition of fixed assets from the network rollout. In Q2 this year, our other income expense was a IDR 3 billion net expense compared to a IDR 303 billion income in the last quarter. This variance was primarily attributable to one-off operational gains recognized in Q1, as highlighted in the previous call. On a year-on-year basis, other operating income increases from IDR 81 billion in 2024 to IDR 300 billion in 2025, again due to one-off prior year tax reversal and gain from early termination of site leases in the first half of the year, in the first quarter mostly.
If we now look at CapEx on the left-hand side of the chart, it has gone up by 85% quarter-on-quarter to IDR 4.8 trillion, reflecting additional investments in network quality, expansion of network, and GPU infrastructure to support our strategic growth initiatives. Consequently, first half CapEx now represents 57% of our full-year guidance, indicating strong execution momentum in line with our investment roadmap. Net debt up from IDR 9.3 trillion to IDR 12.5 trillion on a quarter-on-quarter basis, driven by higher CapEx investment and finance lease payments. As a result, net debt to EBITDA also up by 0.13 x, as highlighted earlier, to 0.49, still remaining in a very healthy level. That's it for me. Now I'll pass the time over to Vivek.
Thank you so much, Nicky. A very good afternoon to everyone on the call. Let me just walk you through the operational matrices. As far as the trends are concerned, they continue to be healthy and much more stable despite the seasonal headwinds. What's important to note is that Lebaran this year was in Q1 and Q2 actually involved the post-Lebaran period. Mobile customers continue to stay flat at 95.4%. We've seen a very healthy addition in app monthly active users. This number has moved northwards and we've added around 1.7 million, and this has also translated into robust traffic growth. On the ARPU side, it's ballpark in the same range as it was, in the range of circa 39,000, and has been steady. If we move to the next chart, this is important.
Vikram spoke about it, and this chart actually talks about the market stabilization efforts that got initiated in Q1 and have flowed through in Q2 of 2025. Starting with starter packs, the entry point of the starter pack has been uplifted to 35,000, and this happened in late Q1. Q2 witnessed liquidation of old market stock, and the full impact of this is likely to flow in Q3 of 2025. As the acquisition market got cleaner and better, the base pricing also saw an uplift, and the entry price of the rebuy plans also moved up by approximately 10%. This was also accompanied with some sharp hyper-personalization efforts that have also powered affirmative pricing with the removal of doles and discounts that were being extended for base engagement at the time of the hyper-competition in the acquisition market.
If we move to the next chart, this essentially talks about how at Indosat we've been able to leverage AI for ARPU enhancement and base engagement, and the time-trended numbers over the past 10 quarters talk about it in deep detail. The most important callout here is us bucking the seasonality post-Lebaran in FY 2025. If we look at previous years, the degree of slump post-Lebaran is much less this year, and the ARPU effort, in addition to hyper-personalization powered by AI, is also being powered by enhanced high-value focus, especially on the IM3 Platinum side and on the international roaming arena as well. That's largely the update from my side. Handing it back to Vikram.
Thanks, Vivek. Finally, on the guidance, we have made a change to our full-year EBITDA guidance, recalibrated to align with market conditions. We are expecting EBITDA growth for this year to be in the low single-digit range. This is driven by the challenging market condition, which has lasted longer than we had anticipated. Nevertheless, we do expect to see a stronger second half of the year, which will bring growth back to the industry and for IOH. No change on revenue guidance, which is for revenue to grow better than market. This year, the CapEx guidance, which is for IDR 13 trillion in 2025. With this, we conclude our presentation. Thank you, and let's proceed to Q&A session.
Thank you. As a reminder, to ask a question, please press star one-one on your telephone and wait for your name to be announced. To withdraw your question, please press star one-one again. Please stand by while we compile our Q&A roster. Our first question is going to come from the line of Piyush Choudhary with HSBC. Your line is open. Please go ahead.
Yeah, hi. Thanks a lot for the opportunity. Good afternoon, management team. A couple of questions. Firstly, if you can talk about the outlook for prepaid ARPU, and in particular, when these changes have been done on removing discounts or freebies, and when did you implement the 10% price up in the entry-level recharge packs? Secondly, on the cost side, Nicky, you briefly mentioned, but what is driving such a decline in the staff cost despite the increasing number of employees, and how much is this sustainable? Secondly, within the cost of services, we saw rental and services cost was down 8% quarter on quarter. Is this any one-off, or is this sustainable? Thank you.
Okay, let me start. Hi Piyush, Vivek this side. Let me start with the first question that you've posed to us with respect to prepaid ARPU. Prepaid ARPU, directionally, Piyush, as you've seen, is moving in the range towards 40,000, and we are more than sure-footed that it's going to get there no sooner rather than later. The steps that have been taken are testimony of the point that I'm making. As far as the removal of discounts and freebies are concerned, Piyush, this is something that has been in play throughout the quarter, and this has been done gradually, and it is something that's still in progress, and there's always room for improvement there. As far as the structural headline pricing is concerned, the 10% price up on the entry-level plans, which is purely the entry-level plans, was effective in the second fortnight of June.
The impact of this is going to fully get recognized starting quarter three.
On the cost side, Piyush, essentially, the movement in the staff cost is to do with bonus and incentives. If we do better in the second half following what we expect to see, we might see the cost go up. Onto rental expenses, we do have a bit of a discount given by our provider, so we have captured that in the second quarter. Going forward, we do see the costs to be sustainable given the reduced cost base.
Got it, Nicky. Thank you. Vivek, just to follow up on your response on the entry-level prices which were up 10%, how much of your revenue contribution comes from these entry-level packs?
Piyush, the entry-level packs contribute approximately a third of our overall revenue, and the entry-level prices that have been rationalized are for the monthly packs, while we maintain status quo on the smaller ticket offerings.
Not the entire one-third of revenue will be impacted by this change which you have done?
As far as the structural price correction is concerned, at a headline level, it is 10%, but how much of it translates into real gains is something that will unfold as we get to see that in the balance part of quarter three because of the movement of customers to different price plans.
Got it. Thank you.
Thank you. One moment as we move on to our next question. Our next question is going to come from the line of Sachin Mittal with DBS Bank. Your line is open. Please go ahead.
Yeah, thank you. Good afternoon, management. Two questions. Firstly, on the guidance that from a greater than 10% to now low single digits, is it all because of the revenue, or is it also a bit of, you know, some margin issues from some side of the business? Has there been a material decline in the revenue growth for this year? That's something I want to understand. How and why it has changed in one quarter so much? That's question number one. Question number two, we're talking of $35 million new AI revenue. How much have we, I mean, do we know how much is our first half AI revenue, if any? Is there a change, you know, is it, I mean, is there a change in margin assumption of the AI revenue or something else which is also a factor in the EBITDA? Maybe we can download. Thank you.
Hi, Sachin. This is Vikram. I think it is mainly coming from B2C prolonged market consumption because B2C, you know, we were expecting things to pick up from an overall consumption in Q2 much better in our assumptions. That has been prolonged. You know, last three months, we have seen especially lower middle class still struggling optimizing. That has been the main driver of the guidance revision on EBITDA. All the other, more or less, we are on track, especially on the new net revenue on AI cloud. I think only 15%- 18% has been realized in the first six months. Most of them will start flowing from quarter three, you will see quarter four also. We will see the full impact of this starting next year for the full year impact.
In terms of guidance, it is mainly because of the prolonged slowness in the market on B2C side.
When we're talking of $35 million new net revenue, which is mainly happening in 3Q and 4Q, and probably it's more in 4Q, we're talking of definitely, you know, maybe $70 million- $100 million kind of AI revenue next year. I mean, just I know it's difficult to put a number, but directionally, we're talking of more than doubling of the AI revenue, right, next year?
100%.
Oh, no, it's not.
These are annual long-term contracts. The minimum full-year impact for next year will be around $70 million, $75 million positively on revenue. These are coming with healthy EBITDA margin.
Which is exceeding, I would say, 60% kind of, right? Ballpark.
I think Nicky can give more update on that. As I said, one, yes, the full-year impact will be annualized around $70 million minimum. As we go along, there'll be more contracts getting signed. On EBITDA, I think Nicky can add to that.
Yes, Sachin, on EBITDA margin, it's around 60%, as you mentioned. Although the different contracts services involved will give us varying levels of margin, overall, that's the kind of EBITDA margin we're looking at.
Got it. Thanks, Vikram and Nicky. Thank you.
Thank you. One moment as we move on to our next question. Our next question is going to come from the line of Arthur Pineda with Citi. Your line is open. Please go ahead.
Hi. Thanks for the opportunity. I just wanted to ask about the consumption trends into the third quarter. Are customers actually spending upwards to match the price increases, or does it remain challenging in the current quarter? I understand that you raise prices on starter packs and on the top-ups, but are customers actually absorbing this and actually driving up revenues based on the early months? Thank you.
Hi, Akal. We have seen some positive trends, especially starting June, mid-June, and that continued in July. Vivek, you want to add anything?
No. Vikram, you've captured it well. As far as the consumption trends are concerned, we are seeing customers moving to the higher plans. Like I had shared with Piyush, whenever there is a headline price correction, customers, there is a set that moves up, and there is a set that right adjusts the spend to the lower ticket prices, which are essentially the Sashay plans. That's there. Consumption has been steady. As far as the early trends are concerned, this is getting absorbed really well in the consumer base. We can see it from, and it's also evinced in the steady consumer base numbers and also the movement in the app monthly active users.
If we look at it from a revenue perspective, we should see some improvement on a quarter-on-quarter basis into 3Q and 4Q. Is that how we should think about this?
For sure. This is going to translate steadily into quarter three.
Understood.
Okay, thank you.
Thank you. One moment for our next question. Our next question is going to come from the line of Ranjan Sharma with JP Morgan. Your line is open. Please go ahead.
Good evening, and thank you for the presentation. Two questions from my side. Maybe I can take them one by one. If I look at your EBITDA guidance, even if I assume 2% growth in EBITDA, I still come to a quarterly run rate for EBITDA of around IDR 7 trillion in the third and fourth quarter versus IDR 6.4 trillion in the first and second quarter. That's about a 10% jump in EBITDA. Is that, is the math correct? Is that the level of jump you're seeing in EBITDA in the coming quarters?
Yes, yes, Ranjan. Directly, your math numbers are correct. It is supported by two things. One, the trend which we are seeing building up on B2C side, you know, we are seeing quarter-on-quarter growth on revenue on B2C, which is extremely important, and supported by all the net new revenue on AI cloud, which I spoke about. Overall, your math is directionally correct.
Okay. That's reassuring. The second question is on the investments that you're making on the network. I still see that a lot of base stations are getting created for 2G. Why would that be the case that you still need to make 2G investments? I mean, a lot of countries are now moving to shut off 2G and 3G.
Yeah. 2G, you know, comes free with 4G nowadays. We are not, we have shut down 3G completely, but 2G, we have not shut down to support. You know, there are a lot of handsets which come with two slots, and one slot is 2G. Still, in a country like Indonesia, the handset play, there is a significant number of handsets. More important, we are not investing on 2G. We are investing on 4G and upgrading to 5G. 2G comes as a package free of cost. Whatever is the current investment historically, we are just leveraging on that.
All right. Got it. Thank you so much.
Thank you. One moment for our next question. Our next question comes from the line of [Raymond Kohshi with Virhan Azarikis]. Your line is open. Please go ahead.
Yeah. Thank you, management, for the call. I have a couple of questions. The first one is, since the market repair that has taken place since the end of the first quarter, can you give us a highlight about your current July prepaid ARPU? It's running. I just want to get a sense of how much it has improved. Second question is, I believe as part of the market repair, which can be very, very complex, we think product simplification is very important. Can you just give us a highlight of how much simplification you guys have done? I don't need an exact number. Let's say if you have 100 at the beginning of the year, how much the product has simplified? Maybe say 50% or 30%. I just want to get a sense of where we are in terms of the product simplifications.
Third question, can you give us an update about your FTTH business? The last two are the status of your fiber asset sales, as well as the last question, the monthly active users for your apps. It's only roughly 50%, which in my opinion is below whatever that you're doing to increase the apps' active users. That's it for me. Thank you.
Hi, Pariman. This is Vikram. Let me start with FTTH and fiber sale, and then I will request Vivek to build on some of the ARPU and simplification. On FTTH business, Pariman, I think last quarter was the first quarter we saw our base going up. We have been stagnant on this because of our IT integration, billing integration. From here, you will see a better momentum on net add and steady momentum on net add. I think Q2 was the first quarter where not a big number, but we were around positive by close to 20,000 on new net customer added. That trajectory will continue. On fiber sale, as we said earlier, we had seen a very good response, and we have zeroed down to two shortlisted parties. We are working on all the other terms and conditions so that we conclude it in the best interest of IOH.
If everything goes well, we should be able to close this in quarter three. Vivek, you want to give more color on some of these repair and product simplification?
For sure. For sure, Vikram. Good afternoon, Pariman. I'll first take the question on market repair that has taken place since end of quarter one. How is it unfolding now? End of quarter one, just to give some color and put things in perspective, end of quarter one, we started with the acquisition repair. The own-based repair started around end of July, end of June, which is end of quarter two, in the second fortnight of that. So far, it's holding up very well. As far as the July numbers are concerned, we are moving, it's yet to get close. We are moving in the right direction, closer to our stated ambition. All I can share with you is that it's looking healthier than quarter two. That's on the question on ARPU. As far as product simplification is concerned, extremely valid callout. This is something that's an ongoing exercise.
It's constantly in play. It's also our endeavor to rationalize the listed price packages. A lot of work is happening on this front. At the same time, what's also worthy of a mention is our entire endeavor and play for hyper-personalization, where AI is powering our entire CVM practice, and we are moving towards a segment of N equals 1. There's a very judicious balance that's being worked out between these two. That's largely what it is. As far as the last question that you have is on the app monthly active users, my comment here would be, if you were to refer to the presentation, we are moving northwards. We are getting better every quarter. That's what we are obsessed about. How do we beat our previous quarter number?
To improve this, there's a lot of work that's happening on the simplification of journeys, the simplification of the product portfolio, the entire look and feel, and how we power our customer journeys through hyper-personalization, which eventually is going to lead to more engagement and make our apps, both myIM3 as well as the bima+ app, the most preferred home for customers.
Thank you. One moment as we move on.
Sorry.
Sorry, go ahead.
Sorry, Raymond. Hope that answers your question.
Thank you. Yeah.
Thank you. Thank you, Raymond.
Thank you. One moment for our next question. Our next question comes from the line of Sukriti Benzo with Bank of America. Your line is open. Please go ahead.
Hi. Thank you. Three quick questions from my side. Thank you, management, for the call. Firstly, on the older starter packs, they've now, is it right to assume, completely been cleaned out and we've completely moved on to the new starter packs at the IDR 35,000 levels? If you could also quickly touch upon what's the latest on competition, if not on the starter packs, on the overall rebuy packs. From the macro side, of course, you mentioned that the lower middle class was still struggling a little bit, even in 2Q. How has that changed and how do you see that changing going forward? The second question on fiber broadband, can you quickly update what are some of the key things we're looking to achieve?
Are there any numbers that you can share on where we intend to be by the end of this year, next two to three years? Last question is on the auctions. Any update and any thoughts on how we are looking at them?
Yeah. Hi, Vikram. On starter pack, I think what we see, not only us as an industry, you know, 75% old stock has been liquidated. Still, there are 15%- 25% which we feel will get liquidated in quarter three. That is the status. Overall, I think the overall competitive environment is moving in the right direction. We see more rational work, and I highlighted in my presentation also, we see the right initiatives getting initiated by all other two operators to ensure that, you know, the health industry moves in a more healthy zone. Positive traction we are seeing. On the consumption, again, early days, I will not say we have recovered fully, but we have seen some positive tractions.
We have seen in June onwards, you know, government budgets are also, you know, getting relieved because Indonesia, you know, 55% is domestic and a lot of government spend driven. Again, early trend, we are very watchful of that. I'll say we are cautiously optimistic, but we need to watch out that space a little more. On FTTH, we want to get to 400,000 customers by the end of this year. In the next two to three years, our stated ambition is to come closer to 8% kind of a market share. Especially, our fiber project, which we are doing, that should help us on this ambition. By the end of this year, streamline our operation. We want to make sure that our billing system and all those things are fully integrated. On spectrum auction, I think the Palm Digi has come up with a roadmap.
We are expecting in the next 12 months 1.4 and then again 700, 900, 2,600, all these spectrum. We need more clarity on the date. What we see is if what has been stated by the minister, if they execute it as per their plan, some of these spectrum will come in the next 12 to 15 months.
Thank you, Vikram. Can I just quickly follow up with one quick question on the margins? If I remember correctly, we, in the past, stated that we'll try to get our EBITDA margins closer to the 50% mark. In light of the current environment, has that baseline changed now, at least in the near term?
I think we are getting there. If you look at quarter two, we are at 47.6. I think we are getting there. We will see more progressive quarter as we close this year and when we get into next year.
Understood. Thank you.
Thank you. As a reminder, if you would like to ask a question, please press star one-one. One moment for our next question. Our next question is a follow-up question from Piyush Cho urdary with HSBC. Your line is open. Please go ahead.
Yeah, hi. Thanks for the opportunity again. I have one more question on your mobile side. We saw a very healthy postpaid ARPU increase of 17% quarter-on-quarter. Just want to understand what has led to such an increase. What are we doing over there? In terms of outlook, how should we think about the postpaid ARPU? Also, I forgot to ask in the previous question, on the prepaid side, if you can tell us on the VAS side, value-added services side, how is the trend or outlook on the ARPU? Thank you.
Okay. Hi, Piyush, Vivek this side. As far as postpaid is concerned, last year, quarter four, we started and almost reinvented our postpaid offering. We came up with IM3 Platinum, where we've been distinguishing ourselves and discriminating ourselves in the market in terms of platinum services and platinum plans. That's been at the core of the steady growth that we've been seeing on the postpaid side. As far as the ARPU is concerned, for the quarter that went by, a part of it was also powered by a robust international roaming growth. Even at the underlying level, the ARPU continues to stay healthy, and the category continues to stay very steady and robust for us and growing for us. Secondly, as far as the prepaid VAS side is concerned, here also, the trends on the VAS ARPU continue to be steady.
As more and more digital engagement increases, and as was exhibited in our monthly active user uplift, this is also going to continue to stay steady.
Okay. Thanks, Vivek. Can you share some examples of what you're doing to drive up engagement and increase the vast ARPU contribution on prepaid? On the international roaming, what has changed? Like, was it in terms of your approach to the customer or the sales approach has changed? What has changed to drive up kind of adoption of international roaming packs?
International roaming, Piyush, this is a category that has been strongly growth hacked. We've very, very nicely sweated out the Hajj period that's been there. It was a combination of both online as well as some steady offline GTM that has been done. That's on the international roaming side. Obviously, as more and more customers become active and digitally savvy on the own apps, the engagement is bound to go up. That's very, very commonsensical and intuitive. As far as the engagement, what was the next question?
Just on the vast ARPU.
On the vast ARPU.
On the vast, vast ARPU.
You heard me speak about how the AI practice is powering our hyper-personalization. That's something that's helping us look at customers through sharper lenses of persona, and accordingly, the most relevant propositions are being extended. That's the sum and substance of how this entire thing is playing out for us.
Excellent. Thanks a lot. Thanks for the color.
Thank you. I'm showing no further questions at this time. I would like to hand the conference back over to Indar for closing remarks.
Thank you, Michelle. Thank you, everyone. Hope you found today's session very informative. As always, do get back to us if you have any additional questions. Otherwise, we will speak to you next quarter. Thank you. Have a good day.
This concludes today's conference call. Thank you for participating. You may now disconnect.