MTEL - Inline 9M25 results, FTTT to drive growth ahead

KBVS Update
Thursday, 30 October 2025

MTEL - Inline 9M25 results, FTTT to drive growth ahead
(Reiterate BUY - TP: IDR750)

9M25 EBITDA hits IDR5.8 tn, inline with estimates. 9M25 EBITDA grew 1.8% yoy to IDR5.8 tn (74.4% of FY target), driven by lower cash-costs. EBITDA declined 3.5% qoq to IDR1.9 tn as revenue fell 2.1% qoq, though improved efficiency and reduced opex partly offset higher CoR.

FTTT and efficiency to drive ‘25F margins. 9M25 results were inline with expectations, supporting maintained ‘25F forecasts. FTTT revenue is projected to grow 20.8% yoy to IDR587.3 bn, supported by 10,000 km of new fiber rollout, reaching 61,039 km. Despite contributing only 6.3% of total revenue, FTTT remains the key growth driver, outpacing the 1.0% rise in tower-leasing revenue. Cost efficiencies from higher co-location deployments should reduce cash costs by 6.2% and lift EBITDA margin to 83.2%.

Reiterate BUY with TP of IDR750, based on 7.9x ‘25F EV/EBITDA (-1.0SD 3yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research