Bakrie Telecom is one of the dozen Indonesian telecommunications operators that provide fixed digital radio cellular telecommunication network and services. The company currently has around 12 million cellular subscribers (mostly prepaid). However, both its operational and financial results are showing a worrying development. In April 2013, Fitch Ratings said that Bakrie Telecom is likely to default on its debt and needs to restructure its USD $380 million senior unsecured bonds due in May 2015.
Bakrie Telecom is an unit of the politically-linked Bakrie & Brothers holding company. In Indonesian media, Bakrie & Brothers and a number of its subsidiaries are portrayed as controversial because of debt woes and (corruption) scandals.
In the first six months of 2013, Bakrie Telecom's net loss narrowed to IDR 292.7 billion (USD $25.9 million) from IDR 749.7 billion a year earlier. According to the company, this is the result of an effective operating costs reduction program. Expenses were cut by 28 percent.
Bakrie Telecom's Financial Highlights:
|Net Operating Revenue||2,202.3||2,742.6||2,765.1||2,591.0||2,361.0|
|Net Income (loss)
|Net Profit per Share¹
in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: Bakrie Telecom, Annual Report 2012