Tower Bersama Infrastructure, a telecommunications tower provider, posted a 31 percent increase in profit during the first half of this year as demand for telecommunications infrastructure increased.
Its net income rose to Rp 282.91 billion ($30 million) from January to June, up from Rp 215.86 billion during the same period last year. Revenue rose to Rp 647.22 billion from Rp 440.49 billion, the company said in a filing to the Indonesia Stock Exchange on Thursday.
“We are pleased to announce record organic growth for the company in the second quarter,” Hardi Wijaya Liong, the chief executive of Tower Bersama, said in the statement.
He said that from April through June alone, the company had 904 new clients, “all through organic growth.”
Tower Bersama had 8,584 tenants at 5,416 telecommunication sites by the end of June. The sites included 3,959 towers, 1,040 shelter-only sites and 417 distributed-antenna system networks.
The company’s number of tenants rose from 5,381 at 3,610 sites by the end of June last year.
While the tenant occupancy ratio — the average number of tenants in each tower — improved to 1.8 from 1.71 during the same period last year. Hardi said the improvement in the tenancy indicator showed that most of the firm’s new tenants came from its existing towers.
Tower Bersama’s existing clients include telecommunications service providers such as Telkomsel, Telkom Flexy, Hutchison CP Telecommunications, Indosat, and XL Axiata. Telkomsel and Telkom Flexi are units of Telkom Indonesia. Indosat and XL Axiata are rivals to Telkomsel and Hutchinson operates under the brand name 3.
“The acquisition of 2,500 towers from Indosat, which will close early in the third quarter, will further enhance our financial performance,” Hardi added.
Tower Bersama is buying 2,500 telecommunication towers from Indosat, the country’s second largest cellular provider, for $406 million.
Shares of Tower Bersama gained 0.6 percent Rp 4,075 on Indonesia Stock Exchange on Wednesday. The company’s shares have risen 71 percent so far this year.