XLSMART Telecom Sejahtera (EXCL) Q3 2025 earnings summary

Executive summary

• Achieved strong post-merger momentum with improved ARPU trends, digital channel adoption, and operational scale following the merger with Smartfren and Smart Telecom effective 16 April 2025.

• Network integration progressing rapidly, expanding coverage, enhancing service quality, and launching centralized service operations.

• Revenue surged 38% year-on-year and 9% quarter-on-quarter, with normalized EBITDA and PAT showing healthy growth despite one-off integration impacts.

• Synergies from the merger are materializing, with $150–$200 million expected in 2025 and $300–$400 million annual run-rate post-integration.

• Interim consolidated financials for the nine months ended 30 September 2025 reflect the combined entity's performance and significant changes to asset base and liabilities.

Financial highlights

• Revenue reached IDR 11.5 trillion in 3Q25, up 38% year-on-year and 9% quarter-on-quarter; 9M25 revenue at IDR 30.5 trillion, up 21% year-on-year.

• Normalized EBITDA for 3Q25 was IDR 5.4 trillion, up 24% year-on-year and 9% quarter-on-quarter; normalized EBITDA margin stable at 47%.

• Normalized PAT for 3Q25 was IDR 1.15 trillion; 9M25 normalized PAT at IDR 2.82 trillion.

• Net loss attributable to owners was Rp 2.6 trillion for 9M25, reflecting one-off integration and depreciation costs.

• Free cash flow increased 23% year-on-year to IDR 9.4 trillion for 9M25.

Outlook and guidance

• Full-year 2025 revenue expected to grow 20–25% year-on-year, in line with market.

• EBITDA margin projected to remain in the low to mid-40% range.

• Capitalized CapEx for 2025 guided at IDR 10 trillion, with total PO issuance around IDR 20–25 trillion.

• Synergy guidance revised upward to $150–$200 million for 2025, with full synergy potential of $300–$400 million annually pre-tax post-integration.

• Integration and modernization expected to complete by 2026, with normalized CapEx returning to mid-teens percentage of revenue thereafter.