Bakrie Telecom reports sharp fall in first-half revenue; net losses widen

26 Oct 2012

Indonesia’s Bakrie Telecom, owned by local conglomerate the Bakrie Group, has reported a 20.4% decline in gross revenue for the first six months of this year to IDR1.375 trillion (USD143.4 million) from IDR1.727 trillion in H1 2011, and an 18.8% fall in service revenue to IDR1.119 trillion from IDR1.378 trillion. The carrier attributed the drop to a 21.4% decrease in service revenue in January-June 2012 and noted that it incurred expenses of IDR332 billion from interconnection services and discounts in the period under review. Voice turnover dipped sharply by 23.8% year-on-year to IDR724.2 billion due to declining usage, while non-voice sales fell 15.4% due to a significant drop in value added service (VAS) revenue caused by new regulations on premium SMS charges. On a more positive note, Bakrie said that revenue from Broadband Wireless Access (BWA) – seen as a key future growth driver – improved in 1H12 and now accounts for 6.3% of gross revenue, compared to 2.9% in the same period of 2011.

Bakrie booked first-half EBITDA of IDR442.4 billion, down 28.9% y-o-y; EBITDA margin narrowed from 36.0% to 32.2%. The group’s other net charges widened to IDR633.3 billion from IDR214.7 billion in the first six months of 2011, due it said, to a 10.3% hike in financing charges following the issuance of a global bond, coupled with the loss on forex translation of IDR228.6 billion. By contrast, Bakrie reported a forex gain of IDR154.4 billion in 1H11. Net losses reached IDR749.7 billion in 1H12, from IDR179.7 billion in 1H11 for the aforementioned reasons.

Operationally, the carrier closed out June with more than 11.463 million subscribers, down 18.5% from 14.062 million at 30 June 2011. The fall was attributed in part to a decision to clean up the operator’s ‘low ARPU’ subscribers in 1Q12. Following the clean-up, Bakrie reported positive net additions of 296,155 users in 2Q12 compared to the prior quarter. Pre-paid subscribers fell by a similar 18.5% to 11.413 million on the back of 21.0% decline in Esia subscribers’ to 10.892 million. Broadband subscribers, including dongle and smartphone users, increased from 208,392 at 30 June 2011 to 521,880 a year later. Bakrie owned and operated a total of 4,011 base transceiver stations (BTS) at mid-2012, down from 4,019 a year earlier, of which 2,356 were EV-DO enabled (2,349).

Indonesia, Bakrie Telecom (BTel)