XLSMART Telecom Sejahtera (EXCL) Q4 2025 earnings summary

Executive summary

• Completed a major merger, achieving key integration milestones ahead of schedule, reducing operational risk, and establishing a strong foundation for future growth.

• Delivered significant operational efficiencies, streamlined processes, and disciplined cost management, resulting in improved margins and sustainable value creation.

• Launched 5G services in 33 cities, achieving blanket city coverage and earning external recognition for network quality.

• Revenue for 2025 reached IDR 42,485 billion, driven by GSM mobile and digital services, with ARPU increasing up to 26% post-merger.

• Recorded a net loss of Rp 4,426,407 million in 2025, mainly due to higher expenses and impairment losses.

Financial highlights

• Full year 2025 revenue rose up to 32% year-over-year to IDR 42,485 billion, supported by subscriber growth and ARPU gains.

• Normalized EBITDA increased 13% to IDR 30.1 trillion, with normalized EBITDA margin at up to 52%.

• Normalized PAT grew 63% year-over-year to IDR 3 trillion, while reported PAT was impacted by integration-related costs and one-off items.

• Total assets increased to Rp 115,318,438 million as of 31 December 2025, with liabilities rising to Rp 85,309,730 million.

• Free cash flow declined 37% year-over-year to IDR 6,595 billion, impacted by higher capitalized capex and integration costs.

Outlook and guidance

• 2026 revenue growth expected to align with market recovery, prioritizing value and sustainable returns.

• EBITDA growth targeted at approximately 2x revenue growth, supported by cost discipline and merger synergies.

• CapEx for 2026 projected at IDR 15–20 trillion, focused on network quality, integration completion, and 5G expansion.

• Merger synergies targeted at $250–300 million in 2026, with full synergy potential of $300–400 million annually post-integration.

• Management expects enhanced service quality and expanded coverage from the merger, aiming for smarter, integrated digital experiences.