JAKARTA: Bakrie Telecom, a mobile phone operator that owns the Esia network, on Monday reported a 96 percent drop in net profits in the first half of this year to Rp 2.7 billion, from Rp 72.8 billion the same period last year.
The company said in a statement that the slump had mainly been caused by an increase in financial costs, by as much as 95 percent to Rp 206 billion, from Rp 105.6 billion in the same period last year.
“This is in line with the US$250 million bonds issuance in the second quarter of 2010, whose funds were used to pay back syndicated loans and capital expenditure for the broadband wireless access service,” the statement reads.
Bakrie Telecom’s number of customers, however, increased 24.7 percent to 11.1 million in the period ending on June 30, increasing its operating profit by 10.1 percent to Rp 174.6 billion, thanks to the company’s cost efficiency. — JP
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