PT Sarana Menara Nusantara (TOWR) Q2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2025, with continued integration of IBST and expansion in towers and fiber assets, operating 35,825 towers and ~170,000 km of fiber optic network as of June 2025.

• Maintained investment-grade ratings from S&P and Fitch, completed a successful rights issue raising IDR 5.5 trillion with limited dilution, and distributed significant dividends.

• Focused on long-term, non-cancellable contracts and efficient capital management, with a strategic approach to both organic and inorganic growth, including major acquisitions such as IBST and IKS.

• Strong ESG credentials, including MSCI ESG Rating of A.

• Business model ensures predictable cash flows and stable returns, with ROI at 8% and ROE at 17.5%.

Financial highlights

• 2Q25 revenue reached Rp 3,185.8 bn, up 2.5% year-over-year; consolidated revenue for H1 2025 was Rp6,394,230 million, up 3.9% year-over-year.

• Net income for 2Q25 was Rp 849.2 bn, a 5.1% increase year-over-year; net profit for H1 2025 was Rp1,652,056 million, up 2.9%.

• EBITDA for 2Q25 was Rp 2,645.4 bn, up 2.2% year-over-year, with EBITDA margin at 83%.

• Gross margin for 2Q25 was 68.0%; gross profit for H1 2025 was Rp4,368,632 million.

• Gross debt reduced by IDR 1.6 trillion; average borrowing cost decreased from 6.21% to 6.15%.

Outlook and guidance

• Management expects continued growth in tower rental and digital services, leveraging recent acquisitions and ongoing capital expenditures for network expansion.

• Cautiously optimistic for further BI Rate cuts and continued margin defense despite non-tower segment growth.

• XL-Smartfren merger expected to conclude in 2–3 years, with gradual network consolidation.

• Focus on monetization and utilization of existing assets, targeting higher penetration and long-term contracts.

• Maintains investment grade rating and strong liquidity (USD 945 mn as of June 2025).