Link Net Reports 14% Revenue Growth and 31% Net Profit Growth. Homes Passed Closing into ~1.8 Million and Revenue Generating Broadband and Cable TV Subscribers ~1 Million
November 2, 2016
PT Link Net Tbk (“Link Net” or the “Company”; stock code: “LINK”) today reported its results for nine months ended 30 September 2016 (“9M 2016”).
The Company continued profitable growth during the 9M 2016, with revenue of Rp 2,145 billion, an increase of 14%, driven from both Residential and Enterprise growth. The Company reported net profit of Rp 605 billion, an increase of 31% compared to the same period last year. And has also managed to maintain its healthy margins, with EBITDA clocking in at high 59% and operating profit solid 38% and net income margin at 28%.
As a manifestation of the Company’s commitment to long-term growth in this under-penetrated huge market, The Company continued to deepen footprints in the 3 existing cities of greater Jakarta, Greater Surabaya (including Malang), and Bandung. And recently has been looking into another opportunity in few fast growing cities for example Medan and Batam. Today The Company reported a net addition of 117 thousand homes passed over the nine months, bringing a total close to 1.8 million homes passed as per end September 2016.
Despite a regular Q3 seasonal slowdown, The Company continued to see strong demand for its bundled broadband and cable TV offerings and added 105 thousand net revenue generating subscribers (combined TV and Internet) in 9M 2016, bringing a subscribers base total closing into 1 million at the end of September 2016.
Bundled average revenue per user (ARPU) remained premium at Rp403 thousand. The Company’s product offering continues to evolve, one of recent example is our recent cable and wireless 4G internet offering, FMX TV Anywhere, and other new innovations. These product and services have shown promising responds as customers continue to demand convenience and seamless internet access from home and on-the-go.
The Company have done much work in large enterprise and small medium business (SMB) since beginning 2016 and have recently launched new improved enterprise products under brand name “First Media Business”. The Company continue to strive for further significant growth momentum gain. Today our enterprise business contribute 16% to total revenue and we expect more in the future.
Commenting on the results, Irwan Djaja, President Director and CEO, said: “We are pleased to have delivered another quarter and nine months of commendable set of results, consistently taking full advantage of further operating leverages, and behold a discipline of prudent cost management. We will continue to be responsive in an ever-changing dynamic environment and competitions, to be consumer-centric focus, product innovations and integrated value-adds services. We remain confidence in our ability to achieve our growth targets this year and ultimately enhance our shareholders returns.”
About PT Link Net Tbk
PT Link Net Tbk ("Link Net"), established in 1996, is the largest provider of services via cable in Indonesia, providing subscription of high quality television services, high-speed next generation broadband internet, and data communications. Link Net operates in Greater Jakarta, Greater Surabaya (including Malang), Bandung, Bali, Medan and Batam.
Link Net owns and operates a network of Hybrid Fiber Coaxial cable ("HFC") and Fiber-to-the Home (FTTH) that provide high-speed internet access services to retail and business customers. Link Net also operates a subscription television channel in collaboration with PT First Media Television (“FMTV”), its subsidiary.
Learn more at www.ir.linknet.co.id
For further information, please contact:
Investor Relations Director
PT Link Net Tbk
Tel: +62 21 5577 7755 (extension 11123)