Indonesia’s second largest telecoms service provider by subscribers and revenue, PT Indosat, has reported a 29% increase in its 2011 net profit to IDR835 billion (USD91 million), aided by a cut in financing costs. The telco said full-year revenue climbed 3.9% to IDR20.58 trillion in 2011, fuelled by a 16.8% expansion in the mobile subscriber base to 51.7 million. The rise in customer numbers helped to offset a fall in Indosat’s blended monthly average revenue per user (ARPU), which declined by 18.2% y-o-y to IDR28,400. Indosat reported debt of IDR23.4 trillion at end-2011, down 2.7% from a year earlier, reducing its financing costs by 21.2% to IDR1.79 trillion, it said.
Indosat, which is 65%-owned by Qatar Telecom (Qtel), has struck a deal to sell 2,500 base transceiver towers to PT Tower Bersama Infrastructure for as much as USD519 million (the deal is expected to be completed in 2Q12), enabling it to use the proceeds for investments. The telco said tower leasing revenue contributed IDR420 billion to mobile revenues in FY11, an increase of 66.6% year-on-year. Fixed voice revenues dropped 3.3% to IDR 1.25 trillion in 2011, stemming from a fall in StarOne’s subscriber base and lower incoming IDD traffic. The number of fixed subscribers fell 58% last year to 228,884, it added. Full-year 2011 CAPEX of IDR6.06 billion, was primarily targeted on improving coverage and capacity to support growth.