Indosat reports falling profits in 2008

26 Feb 2009

Indonesia’s second largest telecoms operator Indosat has reported a 7.84% fall in 2008 net income due to higher operating costs and falling ARPU levels from its mobile users. The group booked net profit of IDR1.88 trillion (USD157.6 million) last year, down from IDR2.04 trillion a year earlier, and below the IDR1.97 trillion figure forecast in a poll by Reuters Estimates. Indosat’s revenues climbed 13% year-on-year to IDR18.66 trillion however, beating analyst forecasts of IDR19.65 trillion.

In the fourth quarter, the telco booked a 31.3% drop in net profit from IDR596.9 billion to IDR410 billion, largely as a result of increased competition in its home market and on currency losses due to a weak rupiah. Indosat’s 4Q08 revenues increased by around 9% from IDR4.61 trillion to IDR5 trillion, in a period in which it added a net twelve million subscribers to end the year with 36.5 million.

Indonesia, Indosat Ooredoo (incl. IM2)