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Results for the 6-month period ended 30th June 2019

Published: 30 August 2019

Oslo, 30 August 2019 – Net1 AS has announced its interim results & KPIs for the 6-month period ended June 30th 2019.

  • Net1 Indonesia recorded a subscriber base of over 50,000 by the period end;
  • The company’s subscriber base is defined to include any consumer, business and government customers who used LTE data or voice services within the prior 90-day period.
  • The company reported that approximately 35% of this subscriber base (over 18,000) were primary SIM users, defined as a subscriber who had used the service within the prior 30-day period.
  • Around 75% of the primary SIM users represented home broadband (FBB) users, who generated average revenue per user (ARPU) of c.$20 per month.
  • The company’s network, which deploys 4G LTE over the highly efficient 450MHz spectrum band, comprises approximately 570 sites on air and covers 122 million people in Indonesia.
  • Net1 AS posted total revenues of NOK 24.4m and a net loss of NOK 162.7m for the period.

“Net1 Indonesia completed its existing network footprint in December 2018, so this represents the first 6 month trading period where the company has operated its full 4G LTE network.” JD Fouchard, Board Chairman of Net1 AS, commented.

“In this context, good progress has been made in Indonesia in terms of subscriber acquisition. Furthermore, the business has expanded its points of sales and fostered a pipeline of potential government and corporate contracts. This activity was stimulated by the recent injection of capital raised from the over-subscribed rights issue as well as the debt financing, which we raised three months ago,” Fouchard added.

In addition, Net1 AS is in advanced stages of closing two bridge loans of NOK 50m and IDR 21bn from RasmussenGruppen and Sampoerna respectively, which will further support the efforts of Net1 Indonesia. Further details can be found in the H1 2019 Financial Report.

Larry Ridwan, CEO of Net1 Indonesia, commented: “The Indonesian market is under-served in key areas. We have successfully grown our footprint in the key ‘prio’ segment, representing the areas of the country with significant latent demand and limited competition.”

“In addition to our 4G home broadband services, our Wi-Fi Kiosk product, which was launched just over three months ago, has already provided over 10,000 hours of internet access to those customers who cannot afford a 4G home connection. This product has also empowered small businesses, where the Wi-Fi kiosks are located, providing them with an income stream through the revenue-sharing model we have implemented,” Ridwan added.

Meanwhile, Net1 Philippines was awarded further spectrum by the National Telecommunications Commission (“NTC”). The NTC has granted an additional 5MHz of spectrum on the 450MHz band, giving Net1 Philippines access to 20MHz in total on that band.

The NTC further granted Net1 Philippines with 200MHz of frequency in the 24450MHz-24650MHz band, also for deployment of LTE services.

“Net1 Philippines continues to develop its strategy and business model. We look forward to implementing plans, with our local partners, to utilise its unique spectrum portfolio from 2020 onwards,” added Fouchard.

Philippines has a population of 104m, 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. All spectrum granted to Net1 Philippines is into perpetuity.

Indonesia has a population of 261m, and Net1 Indonesia has a total 15MHz of bandwidth on the LTE-enabled 450MHz band. Net1 Indonesia owns the spectrum into perpetuity.


Attachment: H1 2019 report

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