Indonesian cable television and broadband internet provider LinkNet says net income for the twelve months ended 31 December 2015 climbed 15% year-on-year to IDR640 billion (USD48.7 million) from IDR557.71 billion in the year earlier period, equivalent to approximately 25% of total revenue for the year. LinkNet director Roberto Feliciano confirmed in a written statement that the company posted revenue of IDR2.56 trillion in FY 2015, a 20% improvement on the figure of IDR2.14 trillion booked in the previous year, as total revenue generating units (RGUs) for broadband and pay-TV rose by 18% to 890,000 from 755,000; average revenue per user (ARPU) was IDR415,000 he said. Further, operating income in 2015 stood at IDR935 billion, or approximately 36% of revenue.
As at 31 December 2015 LinkNet had connected an additional 240,000 homes in three major cities, namely Jakarta, Surabaya and environs, and Bandung, at which date its network passed more than 1.67 million households. The director said that despite the challenging macroeconomic conditions in 2015, the company ‘recorded a high rate of revenue growth, by leveraging operational excellence and managing its operating costs’. LinkNet sees ample room for growth in a market where penetration is still low and says its ability to focus on delivering services to the ‘premium market’ segment is a key priority for 2016.
Earlier this month, LinkNet set aside up to IDR1.5 trillion to support a planned share buyback programme equivalent to a maximum 304.26 million shares – or 10% of its paid-up capital. In a disclosure to the Indonesia Stock Exchange (BEI) on 8 March, LinkNet confirmed the stock buyback which it sees as a means of improving the performance of the company’s shares. The buyback will be conducted over a period of 18 months, subject to the approval of the General Meeting of Shareholders (AGM), which sits in April. an additional