PT Sarana Menara Nusantara Tbk.

In 1H, revenue increased 12.7% year over year to IDR 7.2 trillion. EBITDA rose 4.8% to about IDR 5.5 trillion, while net income grew 12.4%. Gross income increased 5.8%, operating income increased 4.3%, and the EBITDA margin moved from 83% to 77% due to Bach/BMG consolidation. Management said free cash flow was close to IDR 5 trillion in the first six months, with IDR 2.7 trillion used for CapEx, ground lease expansion, and acquisitions; IDR 255 billion of loan repayment; and IDR 400 billion of dividend payout. The company reiterated 2025 CapEx guidance of IDR 4 trillion to IDR 5 trillion, including a one-off spend to secure submarine cable capacity for 15 years. Management also said there is more than IDR 100 trillion of remaining contracted revenue, roughly 9 years of revenue, and net debt to EBITDA is slightly below 4x, versus a 5x bank covenant.

Hartono framed SMN as a digital infrastructure company with tower, fiber, VSAT, managed services, payment, energy, and early AI/data-center-related assets. His tone was confident and strategic, emphasizing that the company’s same assets can generate multiple revenue streams and that scale, long contracts, and investment-grade funding give it resilience. He repeatedly pointed to customer-driven growth opportunities from 5G, new spectrum, and operator rollout needs, while saying the company is prepared to capture orders when they come.

Hartono focused on balance-sheet strength and cash generation, citing slightly below 4x net debt/EBITDA, a 5x covenant limit, BBB- from S&P, BBB from Fitch, and AAA national ratings. He said about 47.5% of debt is fixed rate, 52.5% floating, most loans are in rupiah, and the 15% non-IDR portion is fully hedged. He also emphasized first-half free cash flow near IDR 5 trillion and explained how it was allocated among growth CapEx, debt reduction, and dividend payments.

Analysts asked about XLSmart post-merger sites, FWA orders, lease-rate trends, FTTT ROIC, CapEx, data-center strategy, and the impact of industry consolidation. Management said XLSmart was a win-win package deal with no churn, only slight repricing, and that site relocations/build-to-suit work should be limited to about 200 to 300 sites. On FWA, they said they have received around 2,000 to 2,200 orders so far, are using existing towers rather than building new ones, and expect operators to roll out aggressively because spectrum costs are high. They also said FTTT ROIC is double digit and expect lease rates to stay broadly steady, with demand likely supported by new spectrum and 5G rollout.