Indosat profit increases 36% in first half of year<\/p>\n
JAKARTA (JP): Publicly listed telecommunications company PT
\nIndonesian Satellite Corporation (Indosat) announced on Wednesday
\nan unaudited consolidated net income of Rp 638.4 billion (US$98.2
\nmillion) for the first half of 1999.<\/p>\n
The international telecommunications provider said the net
\nprofit figure represented a 36.8 percent increase over the
\ncorresponding period in 1998.<\/p>\n
Earnings per share in this year's January to June period were
\nRp 660, or 98 U.S. cents per American Depository Share (ADS),
\nusing the closing exchange rate of Rp 6,726 per U.S. dollar
\nquoted by Bank Indonesia on June 30.<\/p>\n
Indosat's president and chief executive officer Tjahjono
\nSoerjodibroto said in the company's financial statement that
\nsluggish business activity before and after the June general
\nelection affected demand for international telephone services.<\/p>\n
He said even the year-on-year 10 percent increase in inbound
\ntourist arrivals, one of the main customers for the international
\ndirect dial (IDD) business, had dropped off due to a change in
\nthe tourist profile.<\/p>\n
\"However, from the financial point of view, we managed to
\nobtain quite moderate growth on revenues and net income, even
\nthough we booked losses due to the rupiah depreciation against
\nthe U.S. dollar.\"<\/p>\n
He said the company projected that a stable economic and
\npolitical environment would lead to increased demand for
\ninternational telecommunications services during the rest of 1999
\nand into the future.<\/p>\n
Indosat's international telephone traffic was recorded at
\n319.1 million minutes in the first half of this year, a decrease
\nof 11.9 percent, from 362.4 million minutes in the first half of
\n1998.<\/p>\n
The company said during the first half it experienced constant
\ndemand for communication services, including the high speed
\nleased line and Internet services, due to growing demand for data
\ncommunications services.<\/p>\n
In the first half of 1999, Indosat's high speed leased line
\nservice was recorded at 636 lines, from 613 lines at the end of
\n1998.<\/p>\n
While its subsidiary Internet service provider IndosatNet
\nincreased access services to 34,854 retail subscribers, placing
\nIndosat as the market leader in the Internet business with a 31
\npercent market share.<\/p>\n
Indosat's executive vice president for marketing and sales
\nBambang Sulistyo said the company recorded outgoing and incoming
\ntraffic volumes of 142,2 million minutes and 176.7 million
\nminutes respectively during the first six months of this year.<\/p>\n
The new telephone tariff implemented by the government in 1998
\nhas had a positive impact by improving the ratio to 1.24 in the
\nfirst half of 1999, from 1.09 in the second half of last year, he
\nsaid.<\/p>\n
Indosat's consolidated operating revenues increased by 36.4
\npercent for the first half of this year to Rp 1.38 trillion, from
\nRp 1.01 trillion in the same period last year.<\/p>\n
International telephone revenue, which is the main contributor
\nto Indosat income, rose by 38.5 percent, or higher than the
\ntelephone traffic growth, due to the increase in the
\ninternational telephone tariff in March.<\/p>\n
Revenues from other telecommunications services also went up
\nby 32.5 percent due to an increase in global corporate services
\nand Internet services.<\/p>\n
The company said in the future it would focus its business
\ndevelopment on basic telephony and data communications,
\nespecially Internet services.<\/p>\n
Indosat has an exclusive right to provide the IDD service in
\nIndonesia until 2004, and is also providing switched and non-
\nswitched telecommunications services.<\/p>\n
The company's shares are listed on the New York, Jakarta and
\nSurabaya stock exchanges. (cst)<\/p>",
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