Indosat reports strong profit<\/p>\n
Dow Jones, Jakarta<\/p>\n
Publicly listed telecommunications firm PT Indosat said on
\nFriday its first quarter net profit rose significantly due to an
\nincrease in cellular revenue and gains from a stake sale.<\/p>\n
Net profit jumped to Rp 556.4 billion (US$65.46 million) from
\nRp 53.8 billion a year earlier.<\/p>\n
Operating revenue rose 32 percent to Rp 2.52 trillion from Rp
\n1.90 trillion during the period, thanks to an increase in
\ncontribution from cellular services, which rose 64 percent to Rp
\n1.72 trillion from Rp 1.05 trillion a year earlier.<\/p>\n
Indosat's cellular subscribers have increased by 10 percent to
\ntotal 6.56 million at end-March, from 5.96 million at end-
\nDecember.<\/p>\n
The company expected the number of its subscribers to increase
\nto 25 million over the next five years as it benefits from the
\nlow cellular penetration in the country.<\/p>\n
The company also attributed the higher net profit to gains
\nfrom the sale of its 30.55 percent stake in PT Mitra Global
\nTelekomunikasi Indonesia, or MGTI, for around $60 million.<\/p>\n
"Our first quarter results showed continuing cellular business
\ngrowth, while we look into new initiatives to maintain our other
\nbusiness," Indosat President Widya Purnama said in a statement.<\/p>\n
However, Indosat's other business, international call
\nservices, saw its revenue decline during the period due to
\ntougher competition from voice over Internet protocol, or VOIP,
\noperators.<\/p>\n
Revenue from international call services fell 15 percent to Rp
\n440 billion from Rp 515.7 billion a year earlier.<\/p>\n
Singapore Technologies Telemedia owns a 42 percent stake in
\nIndosat.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosat-reports-strong-profit-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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