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Management changes, trading update and plans to raise capital in 2020

Published: 9 December 2019

Oslo, 9 December 2019 – Net1 International Holdings AS (“Net1 AS”, NOTC Ticker: Net1) Announces management changes, trading update to October 2019, and plans to raise additional capital in 2020.


The board of directors of Net1 AS has appointed current CFO, Amit Vithlani, to the role of CEO.

Current CEO, Linus Jonsson, will step down from his position on 31st December 2019 to pursue opportunities located closer to his home.

The board will decide whether to seek a replacement CFO.

“The board wishes to thank Linus for his hard-work, dedication, and energy since he took up the position of CEO in August 2018. We wish him all the best in his future endeavours. At the same time, we believe Amit will be a capable replacement, and wish him luck in fulfilling his new role,” said JD Fouchard, Chairman of Net1 AS.


Net1 AS has also provided a trading update. Please refer to the presentation on the company’s website,, which has been posted under Press Releases.


  • Net1 Indonesia recorded a total LTE data subscriber base of approximately 53,000 by October-end. Over 50,000 subscribers were post-paid & pre-paid consumers;
  • The company’s LTE data subscriber base is defined to include any consumer (B2C), business (B2B) and government (B2G) customers who used LTE data services within the prior 90 day period.
  • The company reported that over 17,000 of the LTE data subscriber base were active within the last 30 day period, up from just over 11,000 at end-2018.
  • Pre-paid and post-paid consumers generated an average revenue per user (ARPU) of ca. $17 in October.
  • The group’s network, which deploys 4G LTE over the highly efficient 450MHz spectrum band, comprises approximately 540 sites on air and covers 122 million people in Indonesia. A further 52 sites are deployed in Philippines
  • Net1 Indonesia posted total service revenues for the 9 months to 30th September 2019 of ca. IDR 47bn compared to ca. IDR 30bn for the 6 months ended 30th June 2019. In October 2019, total service revenues for the 10-month period in 2019 reached IDR 53bn.

“We saw modest growth in Q3 2019 in Net1 Indonesia, principally due to a clean-up of the subscriber base and distribution channels, which reduced the sales volumes during the period. The company also experienced billing and network issues which have impacted the growth. In October, the company began a marketing campaign comprising national TV advertising and localised village gatherings, and we have seen a pick-up in gross additions in November,” JD Fouchard commented.

Net1 Philippines (which is equity accounted by Net1 AS) continues to develop its strategy and business plan ahead of schedule to expand its network and launch services into new regions.

“We are excited by Net1 Philippines’ potential with its large and varied spectrum portfolio. We aim to capitalise on this through a roll-out starting Q2 2020, for which we will need to raise capital in H1 2020,” added Fouchard.


Net1 AS plans to raise debt and equity capital in Q1 2020 to support its operations. The group is in discussions with potential funders and investors with a goal of raising capital to:

  • Fund the expansion plans of Philippines;
  • Repay bridge loans to Rasmussengruppen and Sampoerna;
  • Fund Indonesia’s operating burn, payments to trade creditors and growth opportunities;
  • Reduce the group’s debt in Indonesia.

“Net1 AS will require further capital for Indonesia to fund growth opportunities and initiatives in the B2C, B2B & B2G space. We are also seeking to fund our exciting expansion plans in Philippines and repaying the bridge loans advanced by Rasmussengruppen and Sampoerna which mature at the end of April,” said Amit Vithlani, newly appointed Group CEO of Net1 AS.

“Our strategy remains unchanged. We see significant opportunities in offering 4G broadband and capitalise on the underserved areas in Indonesia and the Philippines. We identified the best regions with the greatest potential in 2019 and are focussed on maximising the potential of these locations in 2020,” added Vithlani.

Philippines has a population of 104 million, and Net1 Philippines now has a spectrum portfolio totalling 40MHz: 20 MHz bandwidth on the LTE-enabled 450MHz frequency in addition to the 20MHz it owns in the 3.5GHz band and 200MHz on the 24450MHz-24650MHz band.

Indonesia has a population of 261 million, and Net1 Indonesia has a total 15MHz of bandwidth on the LTE-enabled 450MHz band.


Attachment: trading update

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