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Link Net Records 2 Million Residential Subscribers, Plans to Buy Back Shares

BY :SARAH YUNIARNI

JANUARY 16, 2018

Jakarta. Link Net, an internet broadband provider controlled by conglomerate Lippo Group, has recorded an increase in customer base and announced a plan for buying back its shares.

"Reaching 2 million residential subscribers is a milestone for Link Net. This is due to the continual hard work and diligence of our rollout, operational and technology divisions. The investment is made possible due to the consistent strong execution of our sales and marketing divisions," said Link Net president director Irwan Djaja after a shareholders meeting on Monday (15/01).

At an extraordinary meeting in Jakarta, shareholders approved the plan to set aside Rp 1.3 trillion ($97.6 million) for buying back up to 216.02 million of the company's shares, or 7.1 percent of its outstanding shares.

Link Net caps its buyback prices at Rp 6,000 a piece, or 11 percent premium above its closing share price on Monday.

"The approval of the share buyback reflects the shareholders' confidence in Link Net's prospects," said Irwan, adding that the 18-month buyback process started on Monday.

Link Net expanded its network to 170,000 homes throughout last year, reaching 2 million residential subscribers at the end of December. The company offers a broadband service under the brand name First Media, competing with Telekomunikasi Indonesia's Indi Home and MidPlaza Holding's Biznet on Indonesia's still underserved cable broadband market

Link Net's net income inched up 13.8 percent to Rp 740 billion in the first nine months last year. Revenue also increased 16.5 percent to Rp 2.5 trillion in the same period.

The Jakarta Globe and Link Net are both affiliated with the Lippo Group.

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