XA Update Report | PT Solusi Sinergi Digital Tbk. (WIFI) – The Connection Strikes Growth : FTTH Strength and Early IRA Monetization
By Leonardo Lijuwardi (Senior Analyst)
24-Apr-2026
WIFI continues to demonstrate solid growth momentum, underpinned by strong acceleration in the FTTH segment and the commencement of the monetization phase of FWA–Internet Rakyat (IRA). Despite management revising FY26 guidance to a more conservative level, particularly within the FTTH segment, we believe the fundamental growth trajectory of home-passes and home-connect remains resilient, supported by a stable take-up rate (TUR) and continued backbone expansion. On the other hand, the execution of IRA and the early build-up of its customer base represent key catalysts for the next phase of monetization, although margins may remain under pressure in the near term amid the initial expansion burn stage. Taking into account the more conservative adjustment in assumptions, we maintain our Buy recommendationwith a target price of IDR 4,080/share, still implying an attractive upside potential of +70.0%.
🔹 FY25 – 4Q25: Strong Results in Line with Successful FTTH Telecommunications Segment Execution
• Revenue Growth Remains Strong. FY25 revenue grew by +147% YoY to approximately IDR 1.66T (FY24: IDR 672B | quarterly basis: +28.5% QoQ and +286.1% YoY, 4Q25: IDR 644B), primarily driven by a sharp increase in the telecommunications segment in line with the successful execution of FTTH Starlite, which surged +329.8% YoY to IDR 1.21T in FY25 (FY24: IDR 340B | quarterly basis: +2.6% QoQ and +446.2% YoY, 4Q25: IDR 470B). Meanwhile, the advertising segment continued to contribute steadily, growing +35.7% YoY to IDR 450B in FY25 (FY24: IDR 332B | quarterly basis: +302.3% QoQ and +94.7% YoY, 4Q25: IDR 175B). The growth in advertising revenue was largely driven by increased commuter rail traffic across Java, supported by the seasonal year-end effect in 4Q25
• Margins Continue to Show Structural Improvement. WIFI’s margins continued to strengthen structurally, with gross profit margin (GPM) reaching 67.9% in FY25 (FY24: 51.3%), operating profit margin (OPM) at 57.6% (FY24: 51.3%), and EBITDA margin at 66.7% (FY24: 73.2%). FY25 net profit reached IDR 409B, representing +77.0% YoY growth (FY24: IDR 231B | quarterly basis: +361.3% QoQ and +88.4% YoY).
🔹 FTTH Segment Continues to Deliver Rapid and Solid Accelerated Growth
• Strong Operational Performance – FY26 Guidance Revised. By the end of FY25, WIFI had successfully built 2.5mn home-passes and achieved 1.5mn home-connects, implying a 60% TUR, in line with the initial plan. This exponential growth was achieved within the second half of FY25 while maintaining a relatively stable TUR of 60%. For FY26, management lowered its home-passes target to 4.0mn (previous guidance: 4.7mn) with 2.3mn home-connects. Although guidance has been revised downward more conservatively due to management’s split focus toward FWA–IRA, we continue to believe WIFI can still deliver solid growth in both home-passes and home-connects.
• The FTTH foundation also continues to expand, with WIFI planning backbone expansion into Sumatra Island. As of 3 December 2025, WIFI had signed an addendum agreement with PT KAI targeting an expansion length of 1,086.7 km.
🔹 WIFI Subs – TKP (Telemedia Komunikasi Pratama) Enters the FWA (IRA) Monetization Phase in 2026
• IRA (Internet Rakyat) Monetization Has Begun. Following the successful acquisition of the 1.4 GHz spectrum auction in Regional 1 (Java and Maluku–Papua), further strategic progress has become increasingly visible, supported by Komdigi’s issuance of the official ULO (Operational Feasibility Test) certificate on 26 January 2026. The IRA service was officially soft-launched on 19 February 2026. As of 16 March 2026, Surge had successfully acquired more than 200K customers across more than 236 sites in Java. Going forward, the company will focus on mapping the 1.1mn pre-registered customers against existing on-air sites while prioritizing future on-air expansion plans toward areas with high concentrations of pre-registered customers.
• Management has also provided FY26 guidance for the FWA–IRA segment, with total sites targeted to reach 5,500 sites by December 2026, with each site expected to cover approximately 700–900 users
🔹 FY26 Estimate Revision: Net Profit Toned Down Under a More Conservative Approach Amid the Early Expansion Phase
• We continue to expect WIFI to sustain its accelerated growth momentum, in line with its ongoing expansion phase and the early monetization of IRA. Nevertheless, we are adopting a more conservative approach in our FY26 projections, reflecting management’s more cautious guidance and the early-stage monetization profile of IRA. Accordingly, we maintain our FY26 revenue estimate broadly in line with our previous forecast at IDR 3.91T (vs. NHKSI Research previous estimate: IDR 3.98T). On the other hand, we revise down our FY26 net profit estimate to IDR 886B (vs. previous estimate: IDR 1.54T), factoring in potential margin pressure during the early expansion phase and the still-elevated burn rate during IRA’s initial monetization stage.
🔹 Maintain Buy Recommendation with Target Price of IDR 4,080 / Share (+70% Upside Potential)
• We maintain our Buy recommendation on WIFI with a target price of IDR 4,080/share (Previous target: IDR 4,880/share), reflecting a more conservative adjustment in assumptions. Despite the more prudent revision, the target price remains attractive, implying +70.0% upside based on our 5-year DCF valuation methodology. This valuation implies FY26F EV/EBITDA of 8.8x.
• Key positive catalysts supporting our recommendation include WIFI’s exponential growth trajectory, underpinned by attractive profitability margins, particularly from the successful execution of FWA–Internet Rakyat, as well as resilient FTTH performance supported by stable TUR and accelerated growth. Nevertheless, several key risks remain, including slower-than-expected network execution and operational risks, weaker penetration and take-up rates that may pressure margins and growth, as well as higher-than-expected capex requirements and debt servicing costs.
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