Bakrie Telecom posted its first net profit in 2006

22 Mar 2007

Indonesian wireless in the local loop (WiLL) operator Bakrie Telecom, a unit of Bakrie and Brothers, posted a net profit of IDR72.6 billion (USD7.92 million), reversing a net loss of IDR144.3 billion in 2005, and marking the company’s first annual profit since it launched in September 2003. Gross revenues climbed 125% from IDR369.1 billion in 2005 to IDR829 billion. Net revenues reached IDR607.9 billion (USD67.7 million) in 2006, up 149.4% year-on-year from IDR243.7 billion a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) leapt from IDR23.9 billion to IDR291.5 billion a 1,117% increase. Bakrie Telecom operates a CDMA-based wireless service which it markets under the brand name Esia. It was floated on the Jakarta Stock Exchange in February 2006 and set itself the target of doubling its subscriber base to 3.6 million by end-2007, around 80% of whom were expected to come from Jakarta, West Java and Banten. It reported 1.54 million users at the end of 2006, up from 486,000 a year earlier. To achieve its new target, the company plans to invest USD220 million to expand its national coverage to 17 cities in Java, Sumatra, Kalimantan and Sulawesi this year, writes the Jakarta Post.

Indonesia, Bakrie Telecom (BTel)