PT Sarana Menara Nusantara (TOWR) Q2 2026 earnings summary

Executive summary

• Operates as a digital infrastructure company with 37,000 towers and 183,000 km of fiber optic cable, supported by long-term, non-cancelable contracts with major telecom operators, and maintains a market-leading position with a defensive business model and contracts exceeding Rp 100 trillion.

• Achieved strong growth in 1H-2026 with revenue up 12.7% and net income up 12.4% year-over-year, reflecting robust business fundamentals and diversified revenue streams.

• Business model leverages multi-use assets (towers, fiber, VSAT) to generate multiple revenue streams, including managed services, connectivity, and adjacent businesses.

• Integrated tower and fiber network platform drives operational synergies, high asset utilization, and sustainable shareholder value.

• Non-tower businesses now contribute over one-third of total revenue, reflecting a strategic shift and diversification.

Financial highlights

• Revenue grew 12.7% year-on-year to IDR 7.2 trillion for the first half, driven by consolidation of BMG, with net income rising 12.4% and EBITDA margin at 77.4%.

• Gross margin declined to 64.1% from 68.3% YoY; net income margin stable at 25.8%.

• Free cash flow for the first six months was close to IDR 5 trillion, allocated to CapEx, debt service, and dividends.

• Total assets as of June 30, 2026 were Rp81,842.5 billion, with total liabilities at Rp52,754.7 billion and equity at Rp29,087.8 billion.

• Earnings per share (basic and diluted) for the period were calculated on 58.2 billion weighted average shares.

Outlook and guidance

• CapEx guidance for the year is IDR 4–5 trillion, including significant one-off investment in submarine cable for connectivity.

• Contracted revenue stands at Rp 100 trillion, nearly doubling since 2020, providing about 9 years of revenue visibility and strong downside protection.

• Business expects growth opportunities from new spectrum allocations, 5G rollouts, and FWA orders as operators aggressively roll out new technology.

• The company remains focused on maintaining healthy capital ratios, supporting business growth, and maximizing shareholder value.

• Management expects continued compliance with financial covenants and ongoing investment in infrastructure and service expansion.