Widely diversified Bakrie and Brothers reported a nearly 60 percent increase in consolidated net revenue in 2006, largely on the back of gains in the business group's telecommunications and infrastructure businesses.
The company's total net revenue rose to 4.33 trillion (US$481.3 million) in 2006, an increase of 58 percent from Rp 2.73 trillion the previous year.
Its operating profit rose by 174 percent last year from Rp 222.9 billion to Rp 611.1 billion. However, the company's net profit in 2006 plunged to Rp 215.5 billion from Rp 291.6 billion the previous year.
"There was a significant fall in net profit because in 2005 the company received non-cash income resulting from a haircut on the debts owed by PT Bakrie Pipe Industries, one of its subsidiaries," company president Bobby Gafur Umar said.
In addition to PT Bakrie Pipes Industries, the business group has two other major subsidiaries -- PT Bakrie Sumatra Plantation, which operates a rubber plantation in Sumatra, and PT Bakrie Telecom, which operates a CDMA-based mobile phone service under the name Esia.
Bobby said that despite the lower net profit, the 2006 financial results reflected an improvement in the overall performance of the business group.
He said nearly all of the business group's subsidiaries, especially those involved infrastructure development, telecommunications and plantations, showed significant improvement in 2006.
He said Bakrie Telecom, which booked its first annual profit in 2006, significantly contributed to the sharp increase in the group's consolidated revenue.
The sharp rise in net revenue and operating profit resulted in a substantial increase in Bakrie and Brothers' earnings before interest, taxes, depreciation and amortization to Rp 869.1 billion in 2006 from Rp 452.9 billion in 2005.
With such encouraging financial results, Bakrie and Brothers is upbeat total net revenue will increase by at least 25 percent in 2007, Bobby said.
In 2006, the group's subsidiaries engaged in the infrastructure business recorded combined revenues of Rp 2.27 trillion, accounting for 53 percent of the group's consolidated revenue. The plantation unit booked revenues of Rp 1.18 trillion, or about 27 percent of total revenue, while the telecommunications unit generated revenues of Rp 872.9 billion, accounting for 20 percent.
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