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 on April 16, 2025.

• Digital transformation and convergence strategy remain core, with First Media integration underway and digital platforms driving engagement; mobile subscriber base reached 58.8 million, up 1.2 million year-on-year.

• Digitalization initiatives drove an 18% increase in app users and a 21% rise in app revenue contribution year-over-year.

• Focus on disciplined pricing, quality subscriber acquisition, and cost efficiency to sustain 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 at Rp 388 billion, down from Rp 547 billion in Q1 2024.

• EBITDA margin maintained above 50% despite margin pressures from price competition and higher operating expenses; EBITDA declined 3% YoY 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.

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

• Free cash flow rose 28% year-on-year to IDR 3,080 billion, driven by a 40% reduction in capitalized capex, but remained negative for the quarter in some reports.

Outlook and guidance

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

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

• CapEx guidance and dividend policy to be provided after further integration clarity.

• Focus remains on ARPU sustainability, quality subscriber growth, and long-term value creation.

• No explicit forward guidance on revenue or profit, but management highlights ongoing network expansion and integration synergies.