XLSMART Telecom Sejahtera (EXCL) Q4 2024 earnings summary

Executive summary

• Achieved profitable growth in 2024, with revenue up 6.4% year-on-year to Rp 34.39 trillion and net profit up 45% to Rp 1.85 trillion, driven by operational efficiency, digitalization, and structural transformation.

• EBITDA rose 13% year-on-year to Rp 17.9 trillion, with margin expanding to 52%.

• Mobile ARPU increased 16% year-on-year to IDR 43,000, supported by strong traffic and high-quality subscriber growth.

• Completed acquisition of 750,000 fixed broadband subscribers from Link Net/First Media, surpassing one million subscribers and becoming the second-largest ISP in Indonesia.

• Announced planned merger with Smartfren, aiming to create a leading telco player in Indonesia with enhanced network infrastructure and substantial synergies.

Financial highlights

• Revenue grew 6.4% year-on-year to Rp 34.39 trillion; EBITDA increased 13% to Rp 17.9 trillion with margin at 52%.

• Net profit after tax rose 45% year-on-year to Rp 1.85 trillion.

• Free cash flow rose 20% to IDR 10.5 trillion; capitalized capex up 3% to IDR 7.4 trillion.

• Operating expenses remained flat year-on-year, with a 15% decline in sales & marketing costs.

• Basic and diluted EPS: Rp 139 in 2024, up from Rp 96 in 2023.

Outlook and guidance

• Merger with Smartfren expected to complete in the first half of 2025, pending regulatory and shareholder approvals.

• Guidance for 2025 not provided due to ongoing merger process and related uncertainties.

• Ongoing focus on digitalization, app adoption, and convergence to drive sustainable revenue growth.

• Dividend policy remains at a minimum of 30% of profit, with past payouts at 50%; final decision pending AGM.

• The acquisition of Link Net's B2C segment is expected to enhance residential service offerings.