XLSMART Telecom Sejahtera (EXCL) Q2 2025 earnings summary

Executive summary

• Q2 2025 marks the first consolidated results post-merger, integrating 2.5 months of Smartfren and Smart Telecom into XL Smart, significantly expanding operational scale, network coverage, and management structure across Indonesia.

• Early synergy realization is on track, with network integration progressing, rapid technology modernization, and tangible improvements in customer experience and operational efficiency.

• The merger aims to unlock long-term value through scale, cost synergies, and new growth platforms, including fixed broadband and enterprise connectivity.

• Three strong brands (XL, AXIS, Smartfren) now serve over 82.6 million subscribers, leveraging a unified network and digital platforms.

• Issued 5.07 billion new shares as consideration for the merger, with all assets and liabilities of Smartfren and Smart Telecom transferred to the company.

Financial highlights

• Q2 2025 revenue grew 22% quarter-on-quarter and year-on-year to IDR 10.5 trillion, driven by post-merger consolidation and a larger customer base.

• H1 2025 revenue reached IDR 19.1 trillion, up from IDR 17.05 trillion in the same period last year.

• Reported EBITDA for Q2 2025 was IDR 4.5 trillion; normalized EBITDA (excluding IDR 500 billion integration costs) was IDR 5 trillion, up 15% QoQ.

• Reported PAT was a loss of IDR 1.6 trillion, but normalized PAT (excluding one-offs) was positive at IDR 313 billion; net loss for H1 2025 was IDR 1.2 trillion.

• Total assets increased to IDR 113.4 trillion as of 30 June 2025, from IDR 86.2 trillion at 31 December 2024.

Outlook and guidance

• 2025 is a transition year with elevated CapEx (IDR 20–25 trillion) for integration and modernization.

• Full-year consolidated revenue expected to grow 20–30% over pre-merger 2024, with EBITDA margins in the low to mid-40% range.

• Projected gross synergy of $100–200 million in 2025, rising to $300–400 million annually post-integration.

• Long-term EBITDA margin target is a return to ~50% as synergies materialize and integration completes.

• Proforma revenue for full year 2025, if consolidated from 1 January, would have been IDR 21.77 trillion, with a proforma net loss of IDR 5.39 trillion.