Indonesia’s second largest telecom service provider by value, PT Indosat has reported a loss of IDR131.81 billion (USD13.9 million) for the six months to 30 June 2012, reversing net income of IDR724.48 billion in the corresponding year-earlier period. In a statement Indosat said that the H1 2012 loss was due to foreign exchange losses, and set out plans for the early repayment of debt as its FOREX hedges threaten to weigh heavily on its earnings prospects for the remainder of fiscal 2012. The telco booked an IDR522.25 billion foreign exchange loss in 1H12, compared to a gain of IDR677.68 billion previously. ‘In the first half of the year, we hedged around 30% of our total rupiah and dollar-denominated loans,’ Indosat CEO Hary Sasongko told reporters, adding that whilst the firm expected the local currency to be trading at IDR9,068 to the US dollar, by end-June it had fallen to IDR9,480 to the dollar – resulting in a sizeable FOREX loss. If the rupiah continues to stay at similar levels (i.e. above IDR9,000=USD1), the foreign exchange losses will continue into 2H12, he added. As of 30 June 2012 Indosat had USD1.28 billion in dollar-denominated debt that matures between 2013 and 2019.
Indosat, which is 55.79% owned by Qatar’s Qtel, booked total revenue of IDR10.38 trillion for January-June 2012, up 3.3% year-on-year from IDR10.04 trillion a year ago. The operator closed out June with 50.9 million subscribers, compared with 47.3 million a year earlier.