MTEL - FTTT emerges as growth pillar in revised ‘25F outlook

KBVS Update
Tuesday, 29 April 2025

MTEL - FTTT emerges as growth pillar in revised ‘25 outlook
(Reiterate BUY - TP: IDR750)

Cost-efficiency offsets 1Q25 revenue dip. 1Q25 EBITDA rose 1.1% yoy to IDR1.9 tn, supported by modest revenue growth but pressured by higher opex. EBITDA fell 7.5% qoq due to a 9.1% revenue drop, despite improved cost efficiencies from lower opex and CoR.

Adjusts ‘25 outlook; expects FTTT to drive future growth. 1Q25 results slightly underperformed, leading to a downward revision of ’25 forecasts by 1.8%-8.1%. Strong growth in FTTT segment (up 27.9% yoy) offset weak tower-leasing growth (0.7%), with FTTT projected to grow 25% yoy in ‘25F. Efficiency gains from greater MNO colocation are expected to contain cost growth, boosting ‘25F EBIT margin to 45.6% & net margin to 22.9%.

Reiterate BUY with TP of IDR750, based on 9.4x 2025F EV/EBITDA (-2SD 3yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research