XLSMART Telecom Sejahtera (EXCL) Q1 2026 earnings summary

Executive summary

• Achieved all key integration milestones for Q1 2026 ahead of schedule, reducing network overlap, improving operational efficiency, and enhancing network quality, with recognition as Indonesia's fastest 5G network and inclusion in TIME's 2026 Asia Pacific Best Companies list.

• Marked one year post-merger with Smartfren and Smart Telecom, resulting in significant changes in asset base, liabilities, and segment structure, now operating GSM mobile/telecom and managed IT services.

• Revenue growth supported by festive demand, gradual market recovery, and disciplined cost optimization.

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

• Integration and synergy capture progressing ahead of plan, with 77% of targeted tower dismantling completed.

Financial highlights

• Revenue for Q1 2026 grew 38% year-on-year to IDR 11.8 trillion, mainly from mobile business and Lebaran momentum.

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

• Normalized PAT surged 254% year-on-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 costs post-merger.

• 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, and gross merger synergies targeted at $250–300 million.

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

• Ongoing capital commitments for network expansion total USD 1.74 billion (Rp 29.5 trillion).

• The company is required to return 900 MHz spectrum (7.5 MHz) to the government by December 2026 as a merger condition.

• Monitoring geopolitical and macroeconomic risks, but confident in full-year guidance.