MTEL - Solid 1H25, driven by FTTT momentum into ‘25F

KBVS Update
Friday, 1 August 2025

MTEL - Solid 1H25, driven by FTTT momentum into ‘25F
(Reiterate BUY - TP: IDR750)

1H25 EBITDA hits IDR3.9 tn, inline with estimates. MTEL's 1H25 EBITDA grew 4.4% yoy to IDR3.9 tn, reaching 49.2% of the full-year estimate, supported by lower cash-costs and improved O&M efficiency. On a qoq basis, EBITDA rose 5.5% to IDR2.0 tn, driven by reduced cash-costs despite a slight increase in CoR.

FTTT and efficiency to drive ‘25F margins. MTEL’s 1H25 results support the continuation of its ‘25F forecasts. FTTT revenue surged 28.1% yoy, driven by the company’s fiber rollout strategy. FTTT is projected to grow 25.0% in ‘25F, backed by 10,000 km in new fiber deployment. Tower-leasing remains stable with a modest 0.6% yoy revenue increase expected. Operational efficiencies, particularly from MNO co-locations, helped reduce O&M costs. As a result, EBIT margin is projected to improve to 45.6%, supporting a higher ‘25F net margin of 22.9% and net profit of IDR2.2 tn.

Reiterate BUY with TP of IDR750, based on 9.4x ‘25F EV/EBITDA (-2.0SD 3yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research