Indosat posts sharp rise in profit on mobile growth, lower costs

4 May 2011

Indonesian fixed and mobile operator PT Indosat reported net profit of IDR453.9 billion (USD53.2 million) in the first three months of this year, up 63.3% from IDR278.0 billion in the corresponding period of 2010. The company, Indonesia’s second largest telecoms group, attributed the strong performance to a rise in mobile revenues and the combined impact of lower marketing expenses and financing costs, and higher foreign exchange gains. Revenues rose 3% year-on-year from IDR4.73 trillion to IDR4.88 trillion, driven by mobile revenue growth of 6.2%; the cellular arm said subscriber numbers climbed 21.2% to 45.7 million.

On a less positive note, Indosat booked flat EBITDA of IDR2.22 billion while EBITDA margin contracted to 45.6% from 47.0% in 1Q10. Fixed line revenues were also down sharply, 10.2%, due to a fall in outgoing international direct dial traffic, FOREX and lower fixed-wireless revenue. Turnover from fixed data services was also down 7.8% it said, while blended mobile ARPU declined by 14.8% y-o-y to IDR33,800 per month.

Indonesia, Indosat Ooredoo (incl. IM2)