XLSMART Telecom Sejahtera (EXCL) Q3 2024 earnings summary

Executive summary

• Achieved double-digit EBITDA growth of 13% year-on-year, with EBITDA margin at 52.4% and PAT up 32% year-on-year, despite consumer spending challenges.

• Completed structural transformation to ServCo, integrating over 1 million fixed broadband subscribers and becoming Indonesia's second-largest ISP.

• Mobile subscribers grew 2% year-on-year to 58.6 million; XL Home subscribers surged 40% year-on-year.

• Digitalization efforts accelerated, with app users up 20% year-on-year and digital channels now contributing 33% of mobile revenue.

• AI-driven initiatives enhanced customer experience, operational efficiency, and cost management.

Financial highlights

• Revenue for 9M24 rose 6.3% year-on-year to Rp 25.36 trillion, with data and digital services contributing Rp 23.38 trillion.

• EBITDA for 9M24 reached Rp 13.71 trillion, up 13% year-on-year, with margin at 54.1%.

• PAT for 3Q 2024 was Rp 1.32 trillion, up 31.7% year-on-year.

• Free cash flow rose 23% year-on-year to IDR 7,647 billion for 9M 2024.

• One-off cost of approximately IDR 100 billion in Q3 due to Link Net transaction.

Outlook and guidance

• Targeting mid to high single-digit revenue growth for full year 2024.

• EBITDA margin expected to remain above 50% with disciplined CAPEX below IDR 8 trillion.

• ARPU outlook remains challenging due to aggressive competition and price-based market dynamics.

• Guidance for 2025 EBITDA margin to be provided after full-year results and Link Net integration.