Indosat announces higher profits<\/p>\n
JAKARTA (JP): PT Indosat, the state-owned international
\ntelecommunications company, announced last night that its net
\nincome during the January-September period of this year increased
\nby 9.5 percent to US$ 94.4 million.<\/p>\n
The company's president, Tjahjono Soerjodibroto, told a press
\nconference that the company's operating income in the third
\nquarter this year alone was $50.9 million, 11.2 percent higher
\nthan that in the same period of last year.<\/p>\n
\"This was due to a high growth in telephone traffic volume,
\nIndosat Business Services and telecast services, supported by a
\nrelatively slower growth in operating expenses,\" Tjahjono said.<\/p>\n
He attributed the profit increase mainly to the 19.6 percent
\nrise of Indosat's international telephone traffic during the
\nthird quarter of this year to 109.9 million minutes.<\/p>\n
During the third quarter, the number of Indosat's
\nInternational Direct Dial costumers rose by 91,275 to 290,275.<\/p>\n
The growth in the services of high speed lines as of Sept. 30
\nwas 43.5 percent, as compared to the same period of 1993.
\nMeanwhile, the number of telecast minutes during the third
\nquarter of this year increased by 81.9 percent.<\/p>\n
The increase in high speed lines and telecast services is
\ncontributed to the second informal Asia Pacific Economic
\nCooperation forum held in Bogor, south of here, a fortnight ago,
\nTjahjono said.<\/p>\n
Decrease<\/p>\n
However, Indosat's services in telex and telegraph traffic as
\nwell as the low speed leased lines decreased by 29 percent, 22.2
\npercent and 15.3 percent respectively.<\/p>\n
\"The decreases resulted from costumers' preference in using
\nhigh speed lines rather than the lower speed,\" Tjahjono
\nexplained.<\/p>\n
He noted that the company's operating expenses for the third
\nquarter of this year grew by 21.5 percent to Rp 121.2 billion
\n($55.8 million). However, the period recorded a slower rise in
\noperating expenses, compared to the 30.7 percent growth in the
\nfirst six months of this year.<\/p>\n
\"Please note that the operating expenses for the third quarter
\nalready included bonuses of Rp 5.5 billion for employees,\"
\nTjahjono said.<\/p>\n
He said further that Indosat's operating revenue during the
\nthird quarter increased by 16.3 percent to Rp 232.2 billion and
\nits total assets as of Sept. 30 stood at Rp 833.1 billion, up by
\n5.6 percent from Dec. 31 last year.<\/p>\n
When asked, Tjahjono explained that Indosat had raked in some
\nRp 650 billion from its initial public offerings on the New York
\nStock Exchange as well as on two local stock markets -- the
\nJakarta and Surabaya Stock Exchanges.<\/p>\n
Tjahjono said the proceeds from the public offerings has been
\nallocated to finance a number of the company's investment
\nprojects.<\/p>\n
The projects include the construction of a new gateway
\nexchange in Surabaya, East Java, participation in the procurement
\nof the Asia Pacific Cable Network and establishment of a joint
\nventure company, PT Telkomcell, with the state-owned domestic
\ntelecommunications firm PT Telkom.<\/p>\n
\"The joint-venture company is set up to build a nationwide GSM
\ndigital cellular telephone network. Indosat's shares in the
\ncompany constitute 49 percent of the total shares, while PT
\nTelkom takes 51 percent,\" Tjahjono said, adding that Indosat's
\ntotal required equity investment is some $29.6 million.<\/p>\n
Tjahjono specified that Indosat contributes some $80 million
\nto the Asia Pacific Cable Network project worth $600 million. The
\ncable will have nine landing points throughout the Asia-Pacific
\nregion, one of which will be in Jakarta. (rid)<\/p>",
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