MKNT SCORED NET PROFIT RP 37.2 BILLION, GROWING 569.7 PERCENT

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MKNT SCORED NET PROFIT RP 37.2 BILLION, GROWING 569.7 PERCENT

Jakarta, 06 November 2017 - PT Mitra Komunikasi Nusantara Tbk (NKTT) has successfully registered its net profit, which is Rp 37.2 billion, increased from Rp 5.6 billion or grew by 569.7 percent compared to the same period in last year (yoy). This significant growth is due to the consolidation of subsidiary companies and operational performance in general trading business of cellular phones, gadgets, and prepaid vouchers.

Besides the significant profit growth, this consolidation also led the bookkeeping sales to Rp 4.7 T or grew by 697.4% from Rp 586.7 M (yoy). Besides the consolidation, President Director of PT Mitra Komunikasi Nusantara Tbk (MKNT) Jefri Junaedi explained that the increasing sales in MKNT also reflects the consumer's buying power towards telecommunication products is still high. "As one of the leading companies in the field of cellular provision, gadgets, and prepaid vouchers, our growth is able illustrate a growing market. We don't see any weakening of buying power towards telecommunication products, "said Jefri.

Based on data from the Ministry of Industry in 2017, cellular telecommunication's customers in Indonesia have increased fourfold in the last five years from 63 million to 211 million consumers. Currently, the biggest sales of MKNT are in the prepaid vouchers 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 companies, PT Mitra Sarana Berkat (MSB).

In addition to the positive performance in terms of sales and net profit, MKNT also enjoyed an increase in its total assets worth 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.

 In order to continue developing MKNT, Jefri has prepared a proximity strategy that aims to bring customers closer to MKNT's services or products. "We believe, the easier the consumer to access telecommunication services, the more people whose needs can be fullfiled. We will do this by: First, through the expansion of the distribution area; Both cluster strengthening or regional distribution outlets; Third, update real-time data monitoring system; and lastly the fourth, improving the performance of human resources through the development of sales force or canvasser, "Jefri ended.

Currently, MKNT is seeking new sources of funds through a new right issue done last month, after receiving the approval of the Extraordinary General Meeting of Shareholders (AGM-LB). Through the Preemptive Rights (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 subsidiary companies and additional working capital. The company targets sales of Rp 6.5 trillion, and to expand the distribution network.