CLSA Bakrieland (ELTYI IJ) results broadly in line, on the lower end by Sarina

Earnings in 2Q10 rose 21% QoQ, although declined by 21% YoY. Revenue rose 4% QoQ, 29% YoY. EBITDA margin expanded again in 2Q10 to 54% from 52% in 1Q10. Margin had expanded from 39% in 2006, 42% in 07/08 and 45% in 2009. Lower opex through restructuring dist system, inventory management, and lowering interconnect cost. EBIT margin also expanded to 31% in 2Q10.

· RPM Revenue/minute has expanded. Rev/min had expanded again to Rp116 in 2Q10, from Rp88/min in 1Q10 (Rp75/min in 1Q09). Hence, 1H10 RPM was Rp101/min.
· Blended ARPU was stable, at Rp34k in 2Q10.
· Subscriber base has expanded. Total number of subscribers reached 35m end of 1H10, which saw an expansion of 2.4m subs in 2Q10. Hence, the company expects that total subscribers by end of this year can potentially reach 38-39m