First Media trims first-quarter losses

3 Jun 2016

In a filing to the Indonesia Stock Exchange (BEI), First Media (formerly Broadband Multimedia) – the media arm of local conglomerate the Lippo Group – has confirmed that it narrowed its net losses marginally in the first three months of this year, posting a loss of IDR355.858 billion (USD26.2 million), down 2% from IDR364.400 billion in the corresponding period a year ago. The group said first-quarter revenues of IDR302.256 billion marked a 34.6% improvement from IDR224.418 billion in 1Q15. The company spent IDR800-IDR900 million in January-March – using a mixture of internal resources and external cash.

First Media no longer consolidates the financial statements of ISP LinkNet, although the position as majority shareholder is still held. In Q1 2016 the ISP recorded a net income of IDR187.950 billion, a 29% improvement from IDR145.170 billion in Q1 2015, as revenues increased to IDR673.790 billion from IDR599.949 billion. LinkNet reached the milestone of 1.7 million homes passed in the first quarter of 2016, with the addition of 40,000 households in three major cities; its main coverage is focused in Jabodetabek, Surabaya and surrounding areas, and Bandung. The ISP continues to see strong demand for broadband and pay-TV packages, adding 32,000 revenue generating units (RGUs) to its residential customer base, which stood at 922,000 at the end of March 2016. The average revenue per user (ARPU) – averaged between broadband and pay-TV services – remained unchanged at IDR42,000. Further, the group notes that its role as a strategic investment portfolio holding includes mobile broadband business Internux (Bolt!), and the cinema operator Cinemax. In 2016 Bolt! Is looking to add around 200 base stations to its network, it said.

Indonesia, First Media, Internux (Bolt!), LinkNet (First Media)