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ublicly listed pay TV provider PT MNC Sky Vision (MSKY) saw its net profits plunge last year although its revenue grew steadily on the back of new subscribers.

In an unaudited financial report, MSKY announced Rp 43 billion (US$4.39 million) in net profits in 2012, a 34 percent drop compared to Rp 65 billion in the same period last year.

The company attributed the decline to unrealized foreign exchange losses of Rp 165 billion (US$17 million) from its $165 million bonds that will mature in 2015.

Despite declining net profits, MSKY reported solid business growth with its revenue jumping 37 percent to Rp 2.38 trillion in 2012 from Rp 1.74 trillion a year earlier.

Its operating income stood at Rp 491 billion, surging 39 percent from Rp 353 billion in the same period last year.

A growing number of subscribers contributed to the surge in revenue.

The company said that it had a total of 1.72 million subscribers at the end of last year, a 48 percent increase from 2011’s figure of 1.16 million.

In 2012, MSKY managed to attract 558,000 new subscribers, or an average of 47,000 new subscribers per month.

Despite a growing number of subscribers, the company saw its average revenue per user (ARPU) remain stable at Rp 123,000 per month.

MSKY, a subsidiary of media group PT Global Mediacom, which is controlled by media tycoon Hary Tanoesoedibjo, now has 116 local and international channels, 26 of which are exclusively offered via three pay TV brands — Indovision, Top TV and Okevision.

“Going forward with plans to enhance our product offerings and services, we are confident of achieving strong subscriber growth and strengthening our position as the biggest pay TV provider company in Indonesia,” MSKY president director Bambang “Rudi” Rudijanto Tanoesoedibjo said in a written statement.

Rudi said that MSKY had 85 offices across the country as of the end of last year, which contributed to the increase in the number of subscribers.

The country’s pay TV industry is expected to grow by between 10 and 20 percent this year, according to analyst Kiswoyo Adi Joe of PT Investa Saran Mandiri.

“The main factor for growth is the country’s growing number of middle-class consumers. MSKY’s business has good prospects as it has the largest network. It also has the most number of channels,” Kiswoyo said.

“However, the company needs more variety in its programs and new channels to maintain its subscribers,” Kiswoyo said.

Shares in MSKY slid 2.92 percent from Wednesdays close at Rp 2,050 to end at Rp 1,990 apiece on Friday.

The price of the company’s shares has increased by around 31 percent since its initial public offering in July last year, when the firm sold shares at Rp 1,520 apiece.

— JP/Raras Cahyafitri