PT Sarana Menara Nusantara (TOWR) Q1 2025 earnings summary

Executive summary

• Closed Q1 2025 with 35,506 towers and 170,000 km of fiber optic, 95% under long-term contracts.

• Maintains investment-grade ratings (S&P BBB-, Fitch BBB, national AAA) with stable outlook and strong liquidity of $803 million as of March 31, 2025.

• ROI at 8.3% and ROE at 16.6% for Q1 2025, reflecting stable returns.

• Focus on capital management, low-cost funding, and stable recurring free cash flow.

• Ongoing industry consolidation with three main telco operators post-merger, supporting future growth opportunities in 5G and fixed-mobile convergence.

Financial highlights

• Q1 2025 revenue reached Rp3,208.4 billion, up 5.3% year-over-year, but declined 2.4% quarter-over-quarter.

• EBITDA for Q1 2025 was Rp2,678.7 billion, up 5.3% year-over-year, with margin at 83.5%.

• Net income for Q1 2025 was Rp802.9 billion, up 0.7% year-over-year, with net profit margin at 25-26%.

• FFO increased by IDR 100 billion due to lower interest expenses.

• Dividend payout of IDR 307 billion through 2025.

Outlook and guidance

• Expecting low single-digit revenue growth for 2025.

• Tower and FTTH/FTTP additions expected to be flat due to recent mergers.

• Connectivity segment seen as the main growth driver, with higher revenue contribution anticipated.

• CapEx guidance for 2025 is IDR 5-6 trillion, mainly for relocations and ground leases.

• Long-term contracts secure over Rp74.1 trillion in future revenue through 2042.