LinkNet 2016 net profit up 28% despite challenging trading climate

21 Mar 2017

Indonesian cable television and broadband internet provider LinkNet, majority owned by First Media, the media arm of local conglomerate the Lippo Group, has reported net income of IDR818.563 billion (USD61.47 million) in 2016, up 28.0% from IDR639.525 billion in FY 2016, despite what Managing Director and CEO Irwan Djaja described as ‘challenging macroeconomic conditions’ last year. The ISP booked revenue of IDR2.954 trillion in the full year, up 15.2% from IDR2.564 trillion as income from operations climbed to IDR1.121 trillion from IDR934.760 billion previously. LinkNet reported a 15% year-on-year increase in broadband and pay-TV RGUs last year, to 1.02 million from 890,000, while ARPU remained stable at around to IDR407,000 per month. Broken down, income derived from broadband internet services contributed IDR1.669 trillion and cable TV a further IDR1.085 trillion in FY 2016. ‘This revenue growth reflects the huge market potential for high speed internet given that the broadband penetration rate in Indonesia is still low,’ the official said. Having extended its footprint to a total of 1.83 million premises passed by end-2016, LinkNet says it is also ramping up its efforts to take a slice of the corporate business user pie – an area Irwan terms an ‘important growth engine’ for the company.

Indonesia, First Media