JAKARTA – Indonesian telecommunications giant, PT XL Axiata Tbk (EXCL), has reported a significant financial downturn, logging a net loss of IDR 4.4 trillion for the full fiscal year 2025. This stark reversal from a 2024 net profit of IDR 1.8 trillion has sent ripples through the market, significantly surpassing the consensus estimate of approximately IDR 3.9 trillion in losses. The company’s fourth-quarter 2025 performance primarily fueled this substantial deficit, underscoring the formidable challenges of post-merger integration.

Diving Deep into EXCL’s 2025 Financial Performance

The fourth quarter of 2025 proved particularly challenging for EXCL. The company recorded a net loss of IDR 1.8 trillion, a substantial increase from the IDR 1.3 trillion loss reported in the third quarter of 2025, and a dramatic shift from the net profit of IDR 503 billion in the fourth quarter of 2024. This quarter-on-quarter deterioration was a primary driver for the deeper-than-expected full-year loss.

Key Factors Behind the Widening Loss

Analysis reveals two critical components accelerating the fourth-quarter losses:

• Surging Integration Costs: Following its recent merger, EXCL saw integration costs skyrocket by 146% quarter-on-quarter (QoQ). These expenses are typical in large-scale consolidation, as companies streamline operations, merge networks, and harmonize systems.
• Accelerated Depreciation: The company also faced a 6% QoQ increase in accelerated depreciation expenses. This often occurs post-merger when assets are re-evaluated, or older infrastructure is retired more rapidly to make way for new, more efficient systems.

Revenue Resilience Amidst Strategic Shifts

Despite the bottom-line pressure, EXCL demonstrated impressive top-line resilience. The company’s revenue for the fourth quarter of 2025 reached approximately IDR 11.9 trillion, marking a robust 32% year-on-year (YoY) growth and a 4% QoQ increase. This strong revenue momentum pushed the full-year 2025 revenue to IDR 42.4 trillion, a 23% YoY surge, aligning perfectly with consensus estimates.

ARPU Surge and Customer Strategy

A significant contributor to the revenue growth was the notable jump in Average Revenue Per User (ARPU) to IDR 44.8 thousand. This represents an 8.7% YoY and a substantial 15.2% QoQ increase, signaling a welcome normalization of pricing competition within the Indonesian telecom industry.

Concurrently, EXCL observed a decline in its subscriber base, which fell to 73 million in 4Q25 (down 8.3% QoQ, but still up 24.1% YoY). This reduction is not necessarily a cause for alarm; it reflects the company’s strategic pivot towards focusing on the “high-quality customer segment.” By prioritizing subscribers who generate higher ARPU, EXCL aims to optimize profitability and long-term value, rather than merely chasing subscriber volume.

Navigating the Path Ahead: EXCL’s 2026 Outlook

Looking towards 2026, EXCL has set ambitious yet grounded targets. The company aims for revenue growth that aligns with the broader industry expansion. More impressively, it projects EBITDA growth to be double the rate of its revenue growth. This target underscores EXCL’s confidence in achieving operational efficiencies and leveraging synergies from its recent merger, transforming top-line gains into accelerated profitability.

Investors will closely monitor EXCL’s execution on these targets, particularly as the integration costs normalize and the strategic focus on high-value customers bears fruit. The current net loss, while significant, might represent the trough before a potential recovery, as the telecommunications giant works to solidify its market position and unlock the full potential of its expanded operations.