Indosat reports business diversification, high income<\/p>\n
JAKARTA (JP): PT Indosat has acquired 15.2 percent of shares
\nin Alphanet Telecom Inc (ATI) of Canada worth C$15.75 million
\n(US$10.5 million) as part of its expansion into international
\ntelecommunications.<\/p>\n
ATI, publicly listed on the Toronto Stock Exchange, provides
\ninternational telecommunications services, Indosat's corporate
\ndevelopment vice president Safwan Natanagara said here yesterday.<\/p>\n
He said Indosat bought the shares from the Alphanet Telecom
\nCorporation in September.<\/p>\n
Indosat had also bought convertible bonds worth Rp 150 billion
\nin private television network TPI, Safwan added.<\/p>\n
"The bonds have a 7 percent coupon rate and five-year tenure.
\nTo enable the bonds to be converted into shares, TPI should be
\nlisted by 1999 and become one of the best networks in Indonesia.
\nThe contribution expected from this diversification will be about
\n8 percent to 10 percent of our revenues by 2000," he said.<\/p>\n
State-owned Indosat reported yesterday a 23.9 percent increase
\nin its net profit to Rp 447.6 billion ($136.7 million) in the
\nfirst nine months of this year over the same period in 1996.<\/p>\n
Company president Tjahjono Soerjodibroto said here yesterday
\nthat in the first three quarters, the earnings per share was Rp
\n432.2, or $1.30 per American Depository Share.<\/p>\n
"The nine-month period in 1997 shows that Indosat was not
\nnegatively affected by the recent monetary turmoil. As targeted,
\nwe've been able to keep the growth of operating expenses lower
\nthan the growth of operating revenues, which has resulted in an
\nincome growth of 19.2 percent," he said.<\/p>\n
"Although the economy is in turmoil, the international volume
\npattern appears to be unaffected for this nine-month period in
\n1997. Strong telephone traffic growth and high-speed leased lines
\nare still evident, compared to the same period in 1996.<\/p>\n
"Therefore, looking forward to the end of 1997 with the
\ncurrent achievements and prudent financial management, we are
\nconfident that our 1997 projects are achievable," Tjahjono said.<\/p>\n
Indosat floated its shares on the New York and Jakarta stock
\nexchanges in October 1994. The company's share price closed
\nTuesday at $25, lower than $26.25 on Monday, per American
\nDepository Share on the New York Stock Exchange. Yesterday, its
\nshare price on the Jakarta Stock Exchange gained Rp 100 to close
\nat Rp 8,200.<\/p>\n
In the first half of this year, the company's profits
\nincreased by 15.78 percent to Rp 272.2 billion.<\/p>\n
Indosat's international telephone traffic was 508.9 million
\nminutes in the first three quarters of this year from 426.6
\nmillion minutes in the same period last year.<\/p>\n
Indosat's vice president of marketing Bambang Sulistyo said
\nincoming international traffic for the first nine months was
\n287.7 million minutes, up from 243.2 million minutes in 1996,
\nwhile outgoing international traffic was 221.2 million minutes,
\nup from 183.4 million minutes.<\/p>\n
"Higher growth of outgoing traffic compared to incoming
\ntraffic that occurred during the third quarter confirms that
\ntraffic volume has not been affected by the recent monetary
\nturmoil," he said.<\/p>\n
Besides Indosat, the government has awarded exclusive rights
\nto operate the country's international telecommunications
\nservices to PT Satelindo until 2005. Indosat's market share was
\n91.2 percent in 1996.<\/p>\n
"The market share loss to our competitor appears to be slowing
\ndown, as shown by our average market share from fixed-lines up to
\n89.5 percent in September 1997, compared to 89.4 percent at the
\nend June 1997," Sulistyo said.<\/p>\n
The result reflected Indosat's successful efforts to maintain
\nthe confidence of customers in the company's quality of service
\ncompared to its competitor and its ability to win back customers
\nfrom its rival.<\/p>\n
"We are optimistic that we can maintain an average market
\nshare for fixed-lines of at least 86 percent for the entire
\nyear," he said. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosat-reports-business-diversification-high-income-1447893297",
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