Indosat reports 89.4% rise in net profit
Indosat reports 89.4% rise in net profit
JAKARTA (JP): PT Indonesian Satellite Corporation (Indosat)
announced on Wednesday consolidated net income of Rp 847.7
billion (US$79.2 million) for the first nine months of 1998,
representing an 89.4 percent increase over the same period of
last year.
Earnings per share were Rp 818.6 or 77 U.S. cents per American
Depository Share (ADS) using Bank Indonesia's Sept. 30 closing
exchange rate of Rp 10,700 per U.S. dollar.
Indosat's international telephone traffic increased by 34.7
million minutes in the first three quarters of 1998 to 543.6
million minutes, up from 508.9 million minutes in the same period
of 1997 and the number of high-speed leased lines, as part of its
global corporate service, grew to 583.
Indosat's president and chief executive officer, Tjahjono
Soerjodibroto, said the sharp drop in the rupiah against the U.S.
dollar boosted international telecommunications services demand
in Indonesia.
"Compared to last year, our traffic volume grew at a slower
pace which forced us to be more cautious in all of our
operational activities and in managing our cash flow, especially
foreign currency, because of previous investment commitments that
are due", he said.
Bambang Sulistyo, Indosat's executive vice president for
marketing, said that during January to September 1998, Indosat's
outgoing and incoming telephone traffic volume was 244.1 million
and 299.5 million minutes respectively, an increase of 10.3
percent and 4.1 percent compared to the traffic volume at same
period in 1997.
Significantly slower growth in incoming traffic was mostly due
to the reduction of international business activities as a result
of the economic crisis and political instability following the
May riots in Jakarta.
"Most overseas businessmen lost their contact points in
Jakarta. Nevertheless, our market share loss to our competitor
appears to be slowing down," he said, indicating that the
estimated average market share for telephone service, including
fixed and cellular lines rose to 87.6 percent from 86.2 percent
at the end 1997.
"Currently, Indosat is still projecting that year on year
telephone traffic growth will be positive for 1998," he
said.
The government, which owns 65 percent of Indosat, which is
listed on the Jakarta and New York stock exchanges, is preparing
a competitive tender for the divestment of about 14 percent of
its shares in the international telecommunications provider.
(hen)