XLSmart Surges on Merger Synergies as Revenue Hits $2.67 Billion, Eyes Aggressive 5G Expansion
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JAKARTA, Investortrust.id — PT XLSmart Telecom Sejahtera Tbk (EXCL) said merger integration between XL Axiata and Smartfren is advancing faster than expected as the Indonesian telecom operator ramps up its 5G ambitions despite reporting a statutory loss for 2025.
The company posted revenue of Rp42.49 trillion ($2.67 billion) in 2025, up 23% from a year earlier, while normalized EBITDA rose 13% to Rp20.14 trillion ($1.27 billion). Normalized net profit surged 63% to Rp3 trillion ($189 million).
CEO Rajeev Sethi said 2025 marked a critical transition year following the merger of XL Axiata and Smartfren.
“2025 became an important period for XLSmart in building the foundation for post-merger transformation,” Rajeev said during the company’s public expose in Jakarta on Wednesday.
XLSmart’s accelerating integration progress is emerging as one of the most closely watched telecom restructuring stories in Southeast Asia. Investors are betting the merger can create a stronger challenger in Indonesia’s highly competitive mobile market while unlocking major cost efficiencies.
The company said merger synergies reached $252 million by the end of 2025, exceeding its initial expectations. About 70% of network sites have already been integrated, putting the company on track to complete the process by 2027.
The integration also comes as Indonesia’s telecom industry enters a new phase of monetizing 5G infrastructure, amid surging mobile data consumption across the world’s fourth-most populous country.
No Dividend Despite Strong Operational Growth
XLSmart opted not to distribute dividends after recording what management described as a non-cash accounting loss tied mainly to integration costs and accelerated depreciation of old network assets.
Chief Financial Officer Anthony Susilo said the accounting impact from unused legacy infrastructure reached nearly Rp5 trillion ($314 million).
“In 2025 our financial books recorded a loss. That is why in 2026 we cannot distribute dividends,” Anthony said during the public expose in Jakarta on Wednesday.
Still, Anthony stressed the company’s core operations remained profitable after normalizing one-off merger effects.
The operator sharply increased capital expenditure to Rp11.2 trillion ($704 million) in 2025 from Rp7.3 trillion a year earlier as it accelerated network modernization and 5G deployment.
“We will be more disciplined in implementing investments for network modernization and also 5G,” he said.
5G and Spectrum Auctions Become Next Battleground
XLSmart said additional spectrum will be critical to sustaining future growth as Indonesia’s mobile data traffic continues expanding at double-digit rates annually.
Chief Regulatory Officer Merza Fachys confirmed the company plans to participate in upcoming auctions for the 700 MHz and 2.6 GHz bands, both considered strategically important for nationwide 5G rollout.
“XLSmart is interested in obtaining both spectrums,” Merza said in Jakarta on Wednesday.
He also urged regulators to simplify the auction process, arguing Indonesia’s three mobile operators are already well known to authorities.
Indonesia’s telecom sector has become increasingly concentrated following years of consolidation, with operators racing to improve profitability after prolonged price wars squeezed margins across the industry.
Focus Shifts Toward Higher-Value Customers
At the same time, XLSmart is recalibrating its commercial strategy as the rupiah weakens and consumer spending softens.
Chief Commercial Officer David Arcelus Oses said the company is prioritizing “quality subscribers” instead of simply chasing volume growth.
The company has started raising prices per gigabyte while reducing promotional freebies in an effort to lift average revenue per user, or ARPU.
“Strategy cannot change only because of short-term rupiah movements,” David said during the event.
Beyond its core mobile brands XL, AXIS, and Smartfren, XLSmart is also expanding into fixed broadband and enterprise services. The company currently serves more than 69 million subscribers across Indonesia.
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