Indosat reports sharp rise in 2003 profit

Indosat reports sharp rise in 2003 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