XLSMART Telecom Sejahtera (EXCL) Q1 2026 earnings summary

Executive summary

• Achieved key integration milestones ahead of schedule, reducing network overlap and improving operational efficiency, with enhanced network quality and fastest 5G network in Indonesia.

• Revenue growth supported by festive demand and gradual market recovery, with disciplined cost optimization and focus on customer experience.

• Recognized for employee satisfaction, financial strength, sustainability, and as a top employer in Asia-Pacific.

• Interim consolidated financials reflect the merger with Smartfren and Smart Telecom, resulting in significant changes in asset base, liabilities, and segment structure.

• Financial statements reviewed by independent auditors, with no material misstatements identified.

Financial highlights

• Revenue for Q1 2026 grew 38% year-over-year to IDR 11.8 trillion, mainly from mobile business and festive demand.

• Normalized EBITDA increased 26% year-over-year to IDR 5.4 trillion, with margin stable at 46%.

• Normalized PAT surged 254% year-over-year to IDR 1.4 trillion, aided by lower interest expenses and asset sales.

• Net loss for Q1 2026 was Rp 716,272 million, compared to net profit of Rp 388,232 million in Q1 2025, due to higher post-merger costs.

• Free cash flow rose 3% year-over-year to IDR 3,150 billion despite higher capex.

Outlook and guidance

• 2026 guidance maintained: revenue growth in line with market, EBITDA growth targeted at twice revenue growth.

• CapEx expected at IDR 13–15 trillion, focused on network expansion, 5G rollout in 88 cities, and integration.

• Targeting $250–300 million in gross merger synergies, with majority realized through network consolidation.

• Required to return 900 MHz spectrum (7.5 MHz) to the government by December 2026 as a merger condition.

• Monitoring geopolitical risks, especially in the Middle East, for potential macroeconomic impacts.