Indosat’s 2010 revenue up, but profits tumble

3 Mar 2011

Indonesian fixed and mobile operator PT Indosat said net revenues reached IDR19.79 trillion (USD2.25 billion) in FY2010, up 5.2% year-on-year, driven by higher turnover at its cellular division. Revenue derived from mobile sales climbed 12.1% between 2009 and 2010 to IDR16.03 trillion, the firm said in a statement. The mobile base climbed to 44 million users at 31 December 2010, up from 33 million a year earlier. On a less positive note, sales from non-cellular operations dipped 16.7% y-o-y to IDR3.77 trillion, it added. Moreover, Indosat president Harry Sasongko noted the firm’s net income slumped 56.8% to IDR747.2 billion, from IDR1.49 trillion in FY2009, as Indosat struggled to contain ‘ballooning’ expenses. ‘Our profit downturn was a result of decreasing profit to foreign exchange, higher funding expenditure, bigger depreciation and amortisation,’ the Jakarta Post quotes Harry as saying. In 2010 Indosat accelerated its repayment of debts to a number of banks – Bank BCA (it paid off IDR1.3 trillion), Bank Mandiri IDR900 billion) and Bank DBS (IDR400 billion) – and paid off US-denominated bonds worth USD234 million and USD109 million, and a Rupiah-denominated bond worth IDR640 billion. After these payments, Indosat’s total debt now stands at IDR24.063 trillion.

Indonesia, Indosat Ooredoo (incl. IM2)