XLSMART Telecom Sejahtera (EXCL) Q1 2025 earnings summary

Executive summary

• Revenue grew 2% year-on-year in Q1 2025, reflecting resilience during a transitionary phase and successful merger completion with Smart/Smartfren on April 16, 2025; combined results to be reported from Q2 onward.

• Mobile subscriber base reached 58.8 million, up 1.2 million year-on-year, with a focused fixed-mobile convergence (FMC) strategy and digitalization initiatives driving an 18% increase in app users.

• Integration of First Media and Smartfren is underway, supporting improved customer retention, cross-sell opportunities, and future expansion.

• Strategic focus on disciplined pricing, digital execution, and high-quality subscriber acquisition supported growth.

• The Board and management structure was updated post-merger, with new shareholding composition.

Financial highlights

• Revenue increased to IDR 9,033 billion in Q1 2025 from IDR 8,841 billion in Q1 2024 (+2% YoY); net income declined to IDR 388 billion, down from IDR 547 billion in Q1 2024.

• EBITDA margin remained above 50% (50.2%), though EBITDA declined 3% year-on-year to IDR 4,321 billion.

• Operating expenses rose 7% year-on-year, mainly due to fiber lease expansion, First Media integration, and internalization of distribution operations.

• CapEx declined 40% year-on-year as investments were deferred in anticipation of the merger; significant CapEx expected in upcoming quarters for network integration.

• Free cash flow increased 28% year-on-year to IDR 3,080 billion, driven by lower capex.

Outlook and guidance

• Full network integration expected to complete within two years, with efforts to accelerate where possible.

• Annual synergy savings of $300–$400 million (OpEx) targeted post-merger, with $100 million expected to materialize in 2025.

• CapEx will be elevated in 2025 due to network consolidation; detailed guidance to be provided after further integration progress.

• Dividend policy and further financial guidance to be determined after integration and review by the new Board.

• Management highlights ongoing network expansion and integration synergies, aiming to become Indonesia's most loved company by 2027.