XLSmart Telecom Faces Challenges Despite Revenue Growth

Financial Performance Highlights

XLSmart Telecom (EXCL) reported revenue of Rp 30.54 trillion for Q3 2025, representing a 20.44% year-on-year increase. Despite this growth, the company recorded a loss of Rp 2.6 trillion, compared to a net profit of Rp 1.31 trillion before the merger. The significant change in profitability is attributed to the merger between XL Axiata and Smartfren.

Operational Strengths

The company's operational performance showed several strengths:

1. Mobile Segment Growth: Active monthly users across MyXL, AXISNet, and mySmartfren increased by 21% year-on-year to 39.1 million
2. Enterprise Segment Advancement: Launched ESTA in July 2025, offering integrated IoT, cloud, cybersecurity, and automation solutions
3. Network Quality Improvement: Download speeds increased by 71% and Smartfren coverage expanded by 38%

Strategic Developments

The merger between XL Axiata and Smartfren has created a stronger market presence through:

• Combined brand portfolio (XL, AXIS, Smartfren)
• Enhanced network capabilities
• Expanded service offerings including enterprise solutions

Market Outlook

Analysts from Ina Sekuritas note that while the company faces short-term margin pressures, the merger is expected to be a positive catalyst for long-term performance. The integration of services and expanded network coverage are likely to drive future growth and improve competitiveness in the telecommunications market.