Indonesian broadband services provider LinkNet, a publicly traded company that is 26.26%-owned by Lippo Group via First Media, has reported that net income rose 3.6% year-on-year to IDR263 billion (USD18.8 million) in Q2 2019, fuelled by a solid uptick in subscriber numbers. In a press statement, the telco confirmed 13,545 net new subscriptions in the three-month period under review – its largest quarterly increase since 2017 – taking the total to 616,712 at end-June 2019. The ISP also said that its churn rate had improved from 2.78% in 1Q19 to 2.36% three months later, helping lift second quarter revenue to IDR915 billion (up 4.7% y-o-y).
Marlo Budiman, president director and chief executive of Link Net, noted: ‘The company managed to achieve strong operational performance in the second quarter, a lower churn rate and accelerate subscriber growth. The company will continue to expand its network, aiming for 250,000 [additional] homes passed by the end of 2019.’ LinkNet had expanded its network to 2.3 million homes by 31 March 2019 and says it aims to hold an extraordinary general shareholder meeting on 26 August to seek approval for its share buyback scheme. It holds 36 million treasury stocks and plans to buy back 212 million more over the next 18 months.