MTEL - ResilientCoreBusiness, ImprovingFiberMonetization

KBVS Update
Wednesday, 22 July 2026

MTEL - Resilient Core Business, Improving Fiber Monetization
(Reiterate BUY - TP: IDR680)

2Q26F: FTTT monetization continues to gain momentum. We expect MTEL’s fiber-led strategy to sustain earnings momentum, driven by FTTT. We forecast 2Q26F FTTT revenue to increase +6.9% QoQ to IDR162.6 bn, lifting its revenue contribution to 6.9%.

2Q26F: Co-location demand continues to support tower-leasing. Tower leasing remained resilient, with 2Q26F revenue expected to rise +2.3% QoQ, supported by a +1.2% QoQ increase in average lease rates.

FY26F: Fiber expansion & resilient tower demand to drive growth. We maintain our FY26F forecasts, projecting revenue of IDR9.8 tn (+2.7% YoY), underpinned by +18.0% YoY FTTT growth & resilient tower-leasing revenue (+1.5% YoY).

MTEL trades at 7.4x FY26F EV/EBITDA (16.4% below its 3-yrs avg.), despite improving fiber monetization & resilient tower demand.

Regards,
Steven Gunawan - KBVS Research