Indosat books Rp1.3 billion net profit in 3rd quarter<\/p>\n
JAKARTA (JP): State owned and publicly listed long distance
\ncall operator PT Indosat announced on Wednesday consolidated
\nunaudited net profit of Rp 1.35 trillion (about US$151.6 million
\nbased on the current exchange rate) for the third quarter of this
\nyear, up 13 percent compared to the same period last year.<\/p>\n
\"Overall, our international telecommunication traffic remains
\nstable and survived in a very difficult situation,\" Indosat
\npresident Hari Kartana said in a press statement.<\/p>\n
The company's consolidated operating income rose by 1.8
\npercent to Rp 2.18 trillion from Rp 2.14 trillion in the same
\nperiod last year.<\/p>\n
Revenue from its international telephone service remained its
\nlargest contributor, although it grew by only 0.4 percent, the
\ncompany said.<\/p>\n
As rates remained unchanged, the revenue increase was
\nproportional to the volume increase in its international
\ntelephone traffic, Indosat explained.<\/p>\n
During the same period, Indosat booked higher growth in other
\nservices, in particular multimedia services which grew by 39.1
\npercent.<\/p>\n
However, Indosat's own operating income in the third quarter
\nof this year fell by 4.5 percent compared to the same period last
\nyear.<\/p>\n
Other income rose by 74.3 percent to Rp 749.5 billion from Rp
\n430 billion during the same period last year.<\/p>\n
\"This very strong growth was mainly due to the significant
\nincrease in foreign exchange gains of 406.1 percent to Rp 325.2
\nbillion from Rp 64.3 billion,\" the company said.<\/p>\n
Indosat earns U.S dollars for any incoming call, which
\naccording to Indosat, grew by 2.32 percent in the third quarter
\nof this year.<\/p>\n
\"Continuing growth in Indosat's IDD (international direct
\ndialing) traffic, even in adverse economic conditions, and a
\nsolid Indosat IDD market share of 86.1 percent are indications
\nthat our services are continuously meeting customers' needs,\" the
\ncompany's marketing executive Guntur Siregar said.<\/p>\n
In this year's third quarter, investment income also booked a
\nsolid growth of 26.6 percent to Rp 255 billion from Rp 202
\nbillion last year.<\/p>\n
Indosat's subsidiaries contributing to investment revenues
\nwere led by PT Telkomsel with Rp 303.3 billion, PT Lintasarta
\nwith Rp 16.6 billion and Rp 15.4 billion from PT Intelsat.<\/p>\n
However, in the same period, the company suffered a hefty Rp
\n90.1 billion in equity loss from its subsidiary MGTI.<\/p>\n
As part of Indosat's cellular business strategy, the company
\nplanned to increase its ownership in Telkomsel, which is the
\nlargest GSM-900 operator in Indonesia.<\/p>\n
Indosat said that it would spend between Rp 11 trillion to Rp
\n15 trillion in the next five years, for expansion in four other
\nbusinesses.<\/p>\n
The largest portion, Rp 6.74 trillion, will be spent next
\nyear, mainly to expand its mobile phone business.<\/p>\n
To help finance the plan, Indosat will issue bonds in the near
\nfuture.<\/p>\n
The company said it had appointed four financial advisors to
\nhelp restructure its businesses.<\/p>\n
Danareksa and CSFB will restructure Indosat's cellular
\noperations, while Rothschild and Booz Allen Hamilton will
\nrestructure the company's noncellular operations.<\/p>\n
Indosat is listed at The Jakarta Stock Exchange, and its
\nAmerican Depository Shares are listed on The New York Stock
\nExchange.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosat-books-rp13-billion-net-profit-in-3rd-quarter-1447893297",
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"sponsor": "Okusi Associates",
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