XLSMART Telecom Sejahtera (EXCL) Q4 2025 earnings summary

Executive summary

• Completed a major merger, achieving key integration milestones ahead of schedule and establishing a strong foundation for future growth, with operational efficiencies and margin expansion into 2026.

• Revenue and ARPU increased significantly post-merger, with ARPU up 26% and network consolidation and 5G rollout in 33 cities improving coverage and customer experience.

• Awarded Ookla Speedtest Award for fastest 5G network in Indonesia, validating network quality.

• The merger resulted in significant changes to assets, liabilities, and management structure, with a net loss recorded due to higher expenses and impairment losses.

• The merger contributed substantial revenue and a post-merger loss, with ongoing focus on integration and service expansion.

Financial highlights

• 2025 revenue increased to IDR 42.5 trillion, up 23–32% year-on-year, driven by data, digital services, and subscriber growth.

• Normalized EBITDA rose 13% to IDR 20.1 trillion, with margin at 47–52%; reported EBITDA impacted by integration-related OpEx.

• Normalized PAT grew to IDR 3 trillion, but a net loss of IDR 4.4 trillion was recorded due to higher expenses and impairments.

• Blended ARPU up 15–26% year-on-year to IDR 44,800 in Q4 2025; traffic up 47% year-on-year.

• Subscriber base at 73 million in Q4 2025, up 24% year-on-year post-merger, with a focus on high-quality users.

Outlook and guidance

• 2026 revenue growth expected to align with market recovery, prioritizing value over volume, with EBITDA growth targeted at approximately 2x revenue growth.

• CapEx for 2026 projected at IDR 15–20 trillion, focused on network quality, integration, 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.

• The company is assessing the impact of new accounting standards (PSAK 118) on future financial statement presentation.