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■ In 2Q25, WIFI posted revenue of IDR 282bn (+21.7% QoQ; +66.6% YoY), driven by strong performance in telco income (+11.9% QoQ; +183.1% YoY), boosted by the successful launch of "Starlite" (200 Mbps for IDR 100,000/month); the product helped boost WIFI’s subscriber count to 385k (YTD: ~420k). The advertising segment also saw positive growth, generating IDR 133bn (+34.3% QoQ; +14.2% YoY).
■ WIFI’s 2Q25 EBITDA margin improved to 77.4% (2Q24: 63.1%, 1Q25: 77.9%) on the back of strong advertising margin of 82.1%. Net profit reached IDR 145bn (+76.0% QoQ; +140.3% YoY), making up 41.7% of our FY25 estimate (the bottom line includes IDR 59bn in other income received from acquired local ISPs in 1H25). Looking ahead, we expect further profit growth in 2H25, supported by better capex flexibility thanks to rights issue proceeds, bonds, and debt financing.
■ WIFI raised ~IDR 8.5tn through successful rights issue coupled with oversubscribed bonds and sukuk issuances, indicating market confidence. Combined with IDR 1tn cash investment from NTT, WIFI has sufficient capital to expand its subscriber base over the coming quarters (the company expects a surge in subscriber count starting in Aug-25). Further support for WIFI’s FWA and other businesses stems from potential collaboration with TLKM. The collaboration will take place through 4 main synergies: 1) utilization of TLKM’s resources, including MTEL’s towers; 2) services management for network operations; 3) backbone network to support ex-Java expansion; and 4) Indihome’s idle Home Passes in both Java & Ex-Java.
■ BUY with a TP of IDR 5,200, driven by robust medium-term earnings growth. We’ve revised FY25 and FY26 earnings, while also raising FY27 and FY28F estimates by 4.8% and 10.2%. We maintain BUY rating on WIFI with TP of IDR 5,200, reflecting 2026F EV/EBITDA multiple of 7.6x (17% below sector average), supported by improved financial flexibility and strong growth prospects in the untapped FBB market for low-income households. Key risks include potential delays in rollout that may affect customer acquisition.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
