Link Net expanded its network to 2.3 million homes by the end of March 2019. (Antara Photo/Sigid Kurniawan)
Link Net Posts Higher 2Q Profit on Subscriber Growth
JULY 30, 2019
Jakarta. Link Net, a listed company operating the First Media cable television service, saw its net income rise 3.6 percent to Rp 263 billion ($18.75 million) in the second quarter of this year amid an increase in subscriber numbers.
Link Net said in a statement on Tuesday that it had gained 13,545 new subscribers in the three-month period – its largest increase since 2017.
The company had 616,712 exclusive subscribers at the end of June, with a churn rate of 2.36 percent, down from 2.78 percent in March.
Link Net expanded its network to 2.3 million homes by the end of March.
Thanks to this growth, Link Net managed to increase its revenue to Rp 915 billion in the second quarter, up 4.7 percent from a year ago.
"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 homes by the end of 2019," Marlo Budiman, president director and chief executive of Link Net, said in the statement.
The company will hold an extraordinary general shareholder meeting on Aug. 26 to seek approval for its share buyback scheme.
Link Net holds 36 million treasury stocks and plans to buy back 212 million more over the next 18 months. The company currently floats more than 2.9 billion shares on the stock market. Its shares closed 2 percent lower at Rp 4,510 a piece on the Indonesia Stock Exchange (IDX) on Tuesday.
Link Net and the Jakarta Globe are both affiliated with the Lippo Group.