Published: 27 April 2020
Oslo, 27th April 2020 – Net1 International Holdings AS (“Net1 AS” or the “Group”, NOTC Ticker: Net1) announces a new CEO in its Indonesian subsidiary, highlights for its year-end performance in 2019, and an update on 2020 trading including the impact of COVID-19.
NEW CEO INDONESIA
The board of directors of Net1 Indonesia has appointed Andri Pranata as the new CEO, to replace Larry Ridwan, who has decided to step down after almost 4 years in the role.
Mr. Pranata will join Net1 Indonesia on May 4th from PT Indosat Tbk (“Indosat”), one of Indonesia’s largest mobile operators, where he held multiple senior positions. He was Senior Vice President & Regional Head of West & Central Java, a major region and prior to this, he was also Acting Chief Sales Officer. Mr. Pranata spent 10 years at XL Axiata Tbk (“XL”) prior to joining Indosat. He holds a Bachelor of Engineering in Telecommunications from Telkom University in Bandung & graduated from an MBA Executive Program at INSEAD in Singapore.
“The board wishes to thank Larry for his contributions to Net1 Indonesia over many years. We wish him all the best in his future endeavours. At the same time, we are delighted to welcome Andri, and are excited that he is joining our Group,” said JD Fouchard, Chairman of Net1 AS.
“Andri is a highly experienced & qualified leader. We look forward to working with him in the next chapter of Net1 Indonesia’s progression” said Amit Vithlani, Group CEO of Net1 AS.
Net1 AS has also provided a trading update. Please refer to the presentation on the company’s website, www.net1.international, which has been posted under Press Releases.
Highlights for Q4 2019:
• Net1 Indonesia recorded a total LTE data subscriber base of approximately 55,000 by December-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.
• 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.
• Net1 Indonesia posted total service revenues for the 3 months to 31st December 2019 of ca. IDR 21bn compared to ca. IDR 17bn for the 3 months ended 30th September 2019. Full year unaudited total service revenues stood at IDR 67bn, with IDR 29bn in H1 2019 and IDR 38bn posted in H2 2019. Last year represented the first full year of trading following completion of the initial phase of Net1 Indonesia’s 4G LTE network.
“In Q4 2019, we continued to witness some growth quarter on quarter in Indonesia, as the business continued to clean up its base & optimise the locations of its sites.” JD Fouchard commented.
Net1 Philippines (which is equity accounted by Net1 AS) continues to develop its strategy and business plan.
“We have done a significant amount of work exploring the strategies in Net1 Philippines. We are currently engaged with our local partners, Citadel, to find the right strategy for the company. We have taken some sites off air to rationalise costs whilst the strategy is being developed. The Philippines markets contains several challenges that need time to be addressed, but in conjunction with our partners, we are optimistic of finding a solution in 2020.” added Fouchard.
Highlights for Q1 2020:
• Net1 Indonesia embarked on a targeted approach to grow revenues in 62 sites (the “Speed Up Project”), covering around 600,000 homes, which showed excellent performance in the 3 months ended March 2020.
• Revenues on these specifically targeted sites grew by almost 70% between December and March, & the sites achieved break-even on their direct costs.
• For the remaining network, the clean up & re-location program continued, as unprofitable sites & subscribers were discontinued/churned in preparation for a re-location to more attractive locations. The re-locations are expected to complete by Q3 2020, after conclusion of Net1’s financing plans.
• The net result of the clean-up program was that, whilst total RGUs/RGS’ fell in Q1 2020 compared to Q4 2019, the focus on the Speed Up Project produced a 33% increase in RGUs/RGS. This has set up the platform for the company to expand the network in the carefully selected re-location areas, where similar results are expected.
• . To continue operations into second half of 2020 Net1 is dependent of raising additional long-term financing. The Group is in discussions with potential funders & will provide further information on the progress of this as further developments take place.
• An extension for the Rasmussengruppen & Sampoerna bridge loans, of NOK 50m and IDR 21bn, has been agreed in principle, pending final documentation. These loans will be extended until June 30th 2020.
Please refer to the presentation “Net1 COVID-19” on company’s website, www.net1.international, which has been posted under Press Releases.
“COVID-19 has had a major impact in Indonesia & Philippines, but we are pleased to report that Net1 Indonesia has launched a series of initiatives to assist its current & future customers navigate the challenges. In addition, we have adapted our operations to overcome obstacles posed by restrictions on movement. We are pleased to have been appointed as an essential services provider by the Indonesian government. We also witnessed a surge in demand for our services in March.” said Amit Vithlani.
ABOUT NET1 INTERNATIONAL
Net1 International has investments in 4G LTE operations in Philippines and Indonesia.
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.
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