Indosat's net profit down 72%

Indosat's net profit down 72%

Telecommunications firm PT Indosat said on Wednesday its first-quarter net profit fell 72 percent on year mostly due to the higher amortization of goodwill after it acquired cellular company PT Satelindo last year.

Indosat's net profit dropped to Rp 53.76 billion (US$6.04 million) from Rp 195.35 billion during the same period last year.

The company also attributed the fall in net profit to interest expenses that ballooned to Rp 224.94 billion from Rp 25.25 billion in the first quarter of last year.

On the operating level, the company said its revenue rose 27 percent to Rp 1.902 trillion from Rp 1.496 trillion on the back of a higher revenue contribution from Satelindo and its other cellular company, PT Indosat Multi Mobile Media (IM3).

Revenue from Indosat's cellular units contributed 55 percent to the Indosat's total revenue.

Revenue from Indosat's core business, international call services, contributed only 27 percent to the total revenue.

Indosat said earlier this year that it is working to shift its focus from overseas and domestic fixed-line services to cellular services.

As of March 31, Indosat's current liabilities were Rp 3.151 trillion. The company didn't provide a comparison figure.

The company is 42 percent owned by Singapore Technologies Telemedia Pte. Ltd., a unit of Singapore Technologies Ltd., while the Indonesian government holds a 15 percent stake. -- Dow Jones