Indosat reports sharp rise in 2003 net profit

Indosat reports sharp rise in 2003 net profit

Indonesia's second-largest telecoms company PT Indosat on
Wednesday reported a sharp rise in 2003 net profit on the back of
better operating results and a tax benefit.

The company reported 2003 net profit of Rp 1.57 trillion
(US$183 million) compared with 336.25 billion rupiah the previous
year.

Indosat said sales rose year-on-year to Rp 8.23 trillion from
Rp 6.76 trillion.

The company said its cellular operation recorded 2003 sales of
Rp 5.11 trillion, against Rp 3.27 billion the previous year.
Revenue from the core international direct dial business dropped
to Rp 1.81 trillion from Rp 2.14 trillion.

Multimedia, data communication, Internet and other services
accounted for the rest of sales.

Indosat's bottom line saw a huge jump because of tax charges.
The company said it booked a tax benefit of Rp 22.56 billion in
2003, compared with net tax charges of Rp 774.36 billion a year
earlier.

Indosat's investor relations head, Sutopo, said the tax
benefit resulted from the booking of deferred tax valued at Rp
608.13 billion after the merger with PT Satelit Palapa Indonesia
(Satelindo) late last year.

Indosat has become increasingly dependent on its earnings from
the cellular business compared to its traditional international
direct dial business following the acquisition of Satelindo two
years ago.

At the end of September 2003, its mobile subscribers stood at
5.02 million, up 80.8 percent year-on-year. -- AFP