Solusi Sinergi Digital (WIFI IJ)
3Q25 Earnings Weighed by Early-Stage Investment; Operational and Long-Term Targets Remain Intact
- WIFI booked 3Q25 net profit of Rp32bn (-77.6% qoq), impacted by initial rollout spending, despite strong homeconnect reaching 831k.
- The company guides for 3mn FTTH homeconnect and 5mn 5G FWA subs by 26F, supported by partnership with local contractors and RT/RW Net.
- WIFI currently trades at ~17.2x FY25F EV/EBITDA, implying a premium to global FiberCo peers at ~12x.
3Q25 earnings weighed by front-loaded expansion costs
WIFI posted 3Q25 net profit of Rp32bn (-77.6% qoq/ -47.8% yoy, forming 58% of consensus FY25F), after factoring in non-controlling interest following NTT e-Asia’s 49% stake investment in IJE in Jun25. The company posted a robust +77.7% qoq revenue growth to Rp502bn, supported by strong subscriber momentum, with homeconnect/homepass reaching 831k/ 1,510k. EBIT fell -19.1% qoq, weighed down by front-loaded subscriber activation costs from 443k net homeconnect additions, higher opex, and depreciation post Rp1,367bn capex (+61.3% qoq), while monetisation from newly added subscribers remained gradual. Finance costs also surged 160.4% qoq to Rp117bn, reflecting bond issuance in the quarter.
FY26F FTTH targets reaffirmed: doubling of HP and Homeconnect
WIFI guides FY25 revenue of ~Rp1.4tr and EBITDA of ~Rp940bn (64% margin), alongside operational targets of 2.5mn homepass and 1.5mn homeconnect (60% take-up rate) and an expanded 10,000 km backbone network. WIFI affirms FY26F target of doubling homepass and homeconnect to 5mn and 3mn homeconnect respectively, supported by broader partnerships with local contractors and collaboration with RT/RW Net to penetrate the shadow market. We view 2025-26F as a period of heavy investment and rapid subscriber onboarding, with earnings quality improvement and cash flow optimisation expected to materialise beyond the peak rollout phase.
5G FWA ‘IRA’ targets to drive a new growth leg
While Starlite remains positioned as the core FTTH offering, WIFI’s Internet Rakyat (IRA) is dedicated to the 5G FWA product, scheduled to launch in Jan26 following the commercialisation of the 1.4 GHz spectrum by Komdigi. Mgmt. targets up to 5mn paying FWA subscribers by FY26F, leveraging ~5,000 FWA sites deployed on existing towers owned by TowerCos, and supported by strategic partnerships with Huawei, Orex SAI, FiberHome, and Nokia for project management and network infrastructure deployment. WIFI guides capex per subs at c.US$71 (≈Rp1.1mn), with the bulk of 5G FWA investment concentrated in FY26F, following limited pre-spending in 2025. WIFI trades at ~17.2x FY25F EV/EBITDA, representing a premium to global FiberCo peers at ~12x, which reflects its solid growth potential.
… Read More 20251215 WIFI
