TOWR - Fiber expansion strengthens growth outlook

KBVS Update
Friday, 31 October 2025

TOWR - Fiber expansion strengthens growth outlook
(Reiterate BUY - TP: IDR800)

9M25 EBITDA inline; net profit up 6.4% qoq on lower interest costs. TOWR’s EBITDA rose 1.1% yoy to IDR8.0 tn in 9M25, inline with estimates, supported by lower opex. Quarterly EBITDA grew 2.4% qoq, matching a 3.3% rise in revenue, while net profit increased 6.4% qoq to IDR903.2 bn on lower interest expenses. Despite higher cash costs, TOWR maintained solid operational resilience.

Solid fiber progress supports stable ‘25F outlook. 9M25 results were inline, supporting unchanged FY25 forecasts. FTTT revenue rose 7.3% yoy to IDR1.6 tn, outpacing tower-leasing growth of 0.6%, underscoring its fiber-led strategy. EBITDA is tracking at 74.3% of the FY target, while net profit is forecast at IDR3.4 tn (+2.0% yoy, 25.7% margin), with 9M25 earnings at 75.1% of the full-year estimate.

Reiterate BUY with TP of IDR800, based on 7.9x ‘25F EV/EBITDA, which is within 7yrs avg. historical mean.

Regards,
Steven Gunawan - KBVS Research