Link Net Reports 26% Growth in Net Profit
August 3, 2016
PT Link Net Tbk (“Link Net” or the “Company”; stock code: “LINK”) reported continued profitable growth during the first half of 2016 (“H1 2016”), with revenue of Rp1,393 billion, an increase of 13%, and net profit of Rp 397 billion, an increase of 26% over the same period last year. The Company managed to maintain its strong margins, through continuous operating leverages and operational excellence, with operating margin at a high of 39% and net income margin at 28%.
The Company continued to expand its network across its 3 key coverage areas of greater Jakarta, greater Surabaya and Bandung. In Q2 2016, the Company expanded into fast growing metropolitan Malang. By the end of June 2016, Link Net has expanded its network to 1.74 million homes passed.
The Company continued to see strong demand for its bundled broadband and cable TV offerings and added 76 thousand nett revenue generating units (RGUs) to its residential subscriber base, which reached 966 thousand RGUs at the end of June 2016. Bundled average revenue per user (ARPU) remained premium at Rp402 thousand. The Company’s product offerings continue to evolve, with the expansion of FTTH services, and the launch of 1Gbps services, 4K Ultra HD picture smart box and the FMX TV Anywhere services.
In May 2016, Link Net paid dividends for the 2015 financial year of Rp127.8 billion or Rp42 per share.
Commenting on the results, Irwan Djaja, President Director and CEO, said: “Performance in the first half of 2016 bears testimony to the Company’s continued strong fundamentals, as well as the strength of the team in executing our growth and profitability strategies, even in the midst of a challenging business environment. We still have work to do, but our outlook remains positive until the end of the year.”