Net Profits of Mitra Nusantara Communications Grew 569.7 percent

By : Hariyanto And Aldi Firhand. A | Monday, November 06 2017 - 23:58 IWST

PT Mitra Komunikasi Nusantara Tbk
PT Mitra Komunikasi Nusantara Tbk

INDUSTRY.co.id - Jakarta - Digital telecommunication company PT Mitra Komunikasi Nusantara Tbk (MKNT) successfully recorded net profit of Rp 37.2 billion, up from Rp 5.6 billion or grew by 569.7 percent compared to the same period last year (yoy).

This significant growth is due to the consolidation of subsidiaries and operational performance in the general trading business of cellular phones, gadgets, and refill vouchers.

In addition to significant profit growth, this consolidation also led to bookkeeping of sales to Rp 4.7 T or an increase of 697.4% from Rp 586.7 M (yoy). In addition to consolidation, President Director of PT Mitra Komunikasi Nusantara Tbk (MKNT) Jefri Junaedi explained that the increasing sales in MKNT also reflect consumer purchasing power of telecommunication products is still high.

"As one of the leading companies in the field of cellular provision, gadgets, and refill vouchers, our growth can illustrate a growing market. We do not see any weakening of purchasing power in telecommunication products, "said Jefri.

Data from the Ministry of Industry in 2017 mentioned that cellular telecommunication customers in Indonesia have quadrupled in the last five years from 63 million to 211 million subscribers.

Currently, the biggest sales of MKNT are in the refill pulse business, with a contribution to the company's net profit of 95%. The acquisition of PT Catalist Integra Prima Sukses (CIPS), PT Arifindo Mandiri (AM), PT Kasih Anugerah Kreasi (KAK), and PT Graha Planet Nusantara (GPN) through MKNT's subsidiary, PT Mitra Sarana Berkat (MSB).

In addition to the positive performance in terms of sales and net profit, MKNT also enjoyed an increase in total assets to Rp 842.3 M in the third quarter of 2017 where previously the Company's assets was recorded at Rp 157.8 M at the end of December 2016.

Going forward, MKNT is also developing distribution application development strategy. The Company is currently developing IT-based services that can help ease the distribution of its telecommunication products and services. "This digital platform will accelerate and streamline the Telecommunication product distribution process, broader and real-time," explains Jefri Junaedi.

"In addition to the development of digital infrastructure, the key to business success in the industry is the easy access to our services. There are three steps we will take: First, through the expansion of the distribution area; Both cluster strengthening or regional distribution outlets; and finally the third, improving the performance of human resources through the optimization of marketers, "said Jefri Junaedi.

Currently, MKNT is seeking new sources of funding through a new rights issue last month, after receiving the approval of the Extraordinary General Meeting of Shareholders (AGMS-LB). Through the Preemptive Capital Addition (PMHMETD) mechanism, the Company targets an additional fund of Rp 1.2 trillion, of which Rp 600 billion comes from shares and Rp 612.5 billion warrants.

MKNT also plans to allocate these funds to strengthen the capital structure of subsidiaries and additional working capital. The company targets sales of Rp 6.5 trillion, and expands the distribution network.

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