Link Net Registers Steady Growth in H1 2015, Achieving Over 1.55 Million Homes Passed
Jakarta, August 3, 2015, PT Link Net Tbk (“Link Net” or “the Company”; stock code: “LINK”) reported robust set of results for the first half of 2015 with revenue steadily increasing 22% to Rp 1,238 billion, compared to the same period in 2014. This reflects the continued strong demand for next generation broadband and cable TV*) services in the Company’s key markets of Greater Jakarta, Greater Surabaya and Bandung, as it continues to expand its network now covering 1,553,870 homes passed as at 30 June 2015.
On top of adding 121,363 homes passed in the first half, the Company registered similar expansions in its broadband and cable TV*) RGUs (“Revenue Generating Units”), which increased to 420,687 and 392,850, respectively or 813,537 in total, as at 30 June 2015. The Company’s market leadership position has afforded it insight into customer needs and so is able to customize its content offering and capabilities in order to deliver on the last mile. This is evident in its consistently high bundling rate where 94% of its customers subscribe to both broadband and cable TV*) services, as well as in the increase in its average revenue per user (“ARPU”) to Rp 415,000 in H1 2015.
H1 2015 operating profit rose 20% to Rp 478 billion whilst net profit increased by 13% to Rp 314 billion. The implementation of disciplined cost management structures as well as gains in operational leverages have enabled the Company to maintain its high operating profit margin levels, which stood at 39% in H1 2015.
On June 30, 2015, Link Net announced that it has acquired a 51% stake in FMTV for approximately Rp10 billion. This acquisition is in line with Link Net’s strategy to enhance shareholder value through better cooperation in its cable TV*) service offering and by playing a bigger role in determining cable TV*) strategies moving forward.
Commenting on the results, Roberto Feliciano, President Director, said:
“We are pleased with our performance in the first half of 2015, which bears testimony to the Company’s strong fundamentals, as well as the strength of the team in executing our growth strategies, even in the midst of challenging times. We remain confident of achieving our growth targets for the year.”
*in collaboration with PT First Media Television (“FMTV”)