Indosat's 2001 unaudited net income declines to 10.8%
Indosat's 2001 unaudited net income declines to 10.8%
State-owned telecommunications company PT Indosat Tbk said its
2001 consolidated unaudited net income dropped by 10.8 percent to
Rp 1.46 trillion (US$143.7 million) from Rp 1.64 trillion in
2000, citing higher growth in operating expenses.
The growth in operating expenses last year was "driven mostly
by depreciation, maintenance and miscellaneous expenses,
contributed by the amortization of goodwill and expenses related
to the elimination of cross-ownership," the company said in a
statement made available to The Jakarta Post.
The company said its operating revenue grew 71.7 percent last
year, but its operating expenses jumped 113.2 percent.
The growth in operating revenue was mostly driven by its
cellular business, which contributed 36.4 percent; its
multimedia, datacom and Internet (MIDI) service, which
contributed 19.9 percent; and its international direct dial (IDD)
operations, which contributed 41.8 percent.
Indosat, which is one of the two companies licensed to operate
an international phone service, has recently failed to acquire
the fixed-line assets in Central Java and Yogyakarta owned by
another state telecommunications company PT Telekomunikasi
Indonesia.
The company said that this year, it would focus on the
cellular business and develop wireless technology as an
alternative method to enter the fixed-line business following its
failure to acquire Telkom's Central Java and Yogyakarta fixed-
line assets.
It expected to enter the "fixed wireless business" this year
by utilizing its cellular network called IM3 or the network owned
by Satelindo. Indosat owns a 75 percent stake in Satelindo.
Indosat has allocated around Rp 130.5 billion to develop the
fixed wireless business.
In addition, Indosat would also spend Rp 322.1 billion this
year to further develop its backbone, data communications and
multimedia, IDD and Voice over Internet Protocol (VoIP)
businesses.
The company planned a capital expenditure of Rp 780 billion
this year but this figure could increase, once it receives
payment from Telkom following the aborted sale of the Yogyakarta
and Central Java assets.
Indosat earlier told the Jakarta Stock Exchange that it was
entitled to receive $198 million from Telkom in payment for its
assets sold to the latter.
Telkom has acquired a 35 percent stake owned by Indosat in
cellular operator Telkomsel. It initially planned, but has so far
failed, to transfer its assets in Yogyakarta and Central Java to
cover part of the payment.