Link Net Registers Steady Growth in 9M 2015, Nudging Past 1.6 Million Homes Passed Mark
Jakarta, October 29, 2015 – PT Link Net Tbk (“Link Net” or “the Company”; stock code: “LINK”) today reported its results for the third quarter of 2015 (“Q3 2015”) and the nine months ended 30 September 2015 (“9M 2015”). The Company’s network coverage expanded to over 1.6 million homes passed, a manifestation of the Company’s commitment to long-term growth. 9M 2015 revenue increased 22% YoY to Rp 1,887 billion, driven by 20% and 32% growth in both residential and enterprise businesses, respectively.
Link Net continues to evolve its product offerings and strengthen its market-leading position in the residential segment. Revenue generating units or subscribers (RGUs) totaled 847 thousand, up 18% YoY, on the back of continued strong demand for next generation broadband and cable TV services in its key coverage areas as well as a 3% YoY growth in residential ARPU which clocked in at Rp415 thousand. In anticipation of slower macroeconomic indicators affecting consumer confidence and a seasonaly slow Q3, the Company executed more intensive and systematic re-marketing which resulted in significant gains for the Company. The Company also revisited its sales incentive structures and this has resulted in sales force productivity gains. These initiatives helped the Company secure record high Q3 RGU additions of 34 thousand.
The Company continued to build on the positive growth momentum in its enterprise business. In Q3 2015, it managed to acquire new flagship accounts from government bodies and international financial institutions as well as secured strategic partnerships with reputable corporations. These gains reflect their trust and the credibility the Company has earned in the delivery of high standard of services.
Link Net continues to maintain healthy margins with 9M 2015 operating profit at Rp707 billion representing 37% of revenue and a 15% growth YoY. Net income increased to Rp 461 billion, growing marginally slower than previous quarter at 10%, due in large part to the impact of further local currency weakening. Despite macroeconomic headwinds, the Company continued to deliver relatively strong and steady results, largely attributable to the Company’s persistent efforts at delivering topline growth, further gains in operating leverages and prudent cost management – key elements that have enabled the Company to deliver solid set of results even amidst a tough and challenging economic environment.
Commenting on the results, Roberto Feliciano, President Director, said:
“We are very encouraged by yet another quarter of commendable set of results despite operating in a rather challenging environment where economic data is weak and competition is ever present. Our strong results reflect the growth opportunities in an under-penetrated market as single family homes and corporates will continue to demand quality products and services as the rate of technology adoption advances. We have consistently proven our ability to differentiate ourselves with high quality services and reliable speed to market. It is also important to remain vigilant and responsive to market changes, and to tap into our strengths. We have done so during these challenging times and so have remained resilient and better positioned for growth. This along with the help of the stimulus measures recently undertaken by the government give me confidence in our ability to achieve our growth targets and ultimately enhance shareholder returns. We will consider as well the possibility of paying dividends given the appropriate conditions to do so.”
In Q3 2015, Link Net’s strong performance has been acknowledged with its recent inclusion into the PEFINDO25 Stock Price Index as well as its receipt of the Frost & Sullivan 2015 Indonesia Excellence Award for “Best Fixed Broadband Provider of the Year”.