Bakrie Telecom, the telecommunications arm of Indonesian publicly listed diversified investment company PT Bakrie and Brothers, has reported significant operating losses for the first nine months of this year, its parent confirmed in a results filing. The telco’s operating revenues stood at IDR1.7 trillion (USD177.3 million) for January-September 2012, down 9.7% from the IDR1.9 trillion reported during the same period in 2011. As a result of the lower revenues, Bakrie reported an operating loss of IDR329.5 billion in the period under review, 171% higher than the figure reported in the same period last year. Operating expenses rose by 0.81% to IDR2.1 trillion from IDR2 trillion in 9M11, it said.
The service provider’s weak results come on the back of a 20.4% decline in gross revenue for the first six months of this year to IDR1.4 trillion from IDR1.7 trillion in H1 2011, and an 18.8% fall in service revenue to IDR1.1 trillion from IDR1.4 trillion. The carrier attributed the drop to a 21.4% decrease in service revenue in January-June 2012 and noted that it incurred expenses of IDR332 billion from interconnection services and discounts in the period under review. Bakrie booked first-half EBITDA of IDR442.4 billion, down 28.9% y-o-y; EBITDA margin narrowed from 36.0% to 32.2%. Net losses reached IDR749.7 billion in 1H12, from IDR179.7 billion in 1H11.