Jakarta. August 27, 2025 – PT XLSMART Telecom Sejahtera Tbk (XLSMART) announced its post-merger performance results for the second quarter of 2025. XLSMART continued delivering positive results. In Q2 2025, the Company recorded total revenue of Rp 10.50 trillion, an increase of 22% compared to the same period last year (YoY), normalized EBITDA of Rp 4.97 trillion with a normalized EBITDA margin of 47%, and normalized PAT (Profit After Tax) of Rp 313 billion. Data and digital services generated more than 91% of overall revenue. XLSMART's revenue in the first half of 2025 reached Rp19.10 trillion.
XLSMART President Director & CEO, Rajeev Sethi, stated, "The second quarter of 2025 marks a key milestone for XLSMART. Two and a half months following the merger, we encountered both external and internal barriers. Externally, the industry appears quite competitive, while inside, we must ensure the Company's operations remain solid in order to provide optimal customer service."
Rajeev further added that XLSMART continues to concentrate on consolidation and integration across various lines of business in order to maintain performance. Key achievements in the second quarter post-merger include increased business scale, planned network integration, and enhanced customer experience.
In addition, the company is currently modernising its network to expand its capacity and prepare for the adoption of the latest technologies. With a wider network, more capacity, and a multi brand strategy, XLSMART is well positioned to expand its role as a driver of Indonesia's digital transformation. We are grateful to maintain revenue growth, continue to deliver profitability, and provide inclusive, innovative, and value-added services to all customers," Rajeev said.
By the end of Q2 2025, XLSMART's total customers had expanded to 82.6 million, with a blended ARPU of around Rp36 thousand. These customers and ARPU achievements reflect the consolidation that occurred following the merger.
The merger resulted in an increase in operating expenses. However, selling and marketing expenses were optimised and reduced in comparison to the same period last year, as a result of the implementation of digitalisation strategies. Meanwhile, several other cost components recorded YoY increases, such as infrastructure costs, interconnection expenses, and other direct outlays, including regulatory fees. Overall, operating expenses increased in Q2 in response to additional costs related to the establishment of the new XLSMART entity.
The second quarter of 2025 post merger also included efforts to enhance digital usage in customer interactions for XL, AXIS, and Smartfren products and services. All three apps continued seeing potent user growth. In Q2, MyXL, AXISNet, and mySmartfren had over 41.4 million active users, representing growth of 29% YoY.
The increased usage of MyXL, AXISNet, and mySmartfren highlights improved customer experience and monetization opportunities for XLSMART through better insights into customer needs. The more these apps are used, the more accurate the prediction of customer trends and behaviours, allowing XLSMART to provide the appropriate offers to the right customers at the right time. Over the past two years, MYXL, AXISNet and mySmartfren have experienced increase in revenue contribution growth of up to 18% annually.
One of XLSMART's growth strategies is to continuously personalise its products and services. This strategy was successfully applied throughout the quarter, increasing service utilisation and ultimately leading to income.
XLSMART also continues to implement a digital driven strategy based on data analytics, allowing the company to invest in high value sectors while expanding its network to fulfil the needs of all consumer segments. Data analytics also enables XLSMART to assess key performance indicators (KPIs) across customer engagement, marketing campaigns, and loyalty, assisting in the development of effective strategies to handle challenges and opportunities at the appropriate moment.
As of Q2 2025, XLSMART's financial position remained healthy, with gross debt at Rp 23.19 trillion, net debt to EBITDA gearing ratio (including finance lease) at 3.53x, and net debt at Rp 21.93 trillion. The Company has no USD denominated debt. Of the current loans, 78% are floating rate and 22% are fixed rate. Free Cash Flow (FCF) remained healthy, increasing 35% to Rp 6.48 trillion.
By the end of Q2 2025, XLSMART's total BTS exceeded 209 thousand, up 28% over the same period last year. Service traffic grew 43% YoY, reaching 3,817 Petabytes.
XLSMART continues to strive to improve network quality and customer experience. This commitment is reflected in capital expenditure (Capex) of around Rp 2.3 trillion by Q2, part of the total annual Capex allocation of Rp 20 - 25 trillion. This includes support for network integration.
Integration and Consolidation Progressing as Planned
XLSMART reached progressive milestones in generating value from post merger consolidation in Q2 2025, spanning technology, commercial, and people aspects.
From the standpoint of technology, XLSMART rapidly expanded its network through National Roaming and MOCN initiatives, allowing connectivity and compatibility across XL and Smartfren legacy networks, hence increasing coverage and services (There were an additional approximately 156 cities/areas in Indonesia that now accessible for Smartfren users). The Company also integrated network management and the Network Operating Center (NOC), improving efficiency, while consolidating partner support for network operations, with ZTE and Huawei as key partners.
Commercially, XLSMART continues to maintain its three brands XL, AXIS, and Smartfren to remain competitive. Customer experience (CX) enhancements implemented by the new business have been effectively monetised. The alignment of field sales teams and digital tools for growing sales continues. From a people standpoint, XLSMART has established a Board of Directors and Commissioners since legal Day One, united the cultures of the two legacy companies into an entirely new XLSMART culture across all regional offices, and enhanced employee engagement.