Indosat says FOREX, depreciation effects having negative impact on Q2 losses

20 Jun 2013

Indonesian fixed and mobile operator PT Indosat expects to keep booking losses in the second quarter of this year, due to the continued downward pressure from foreign exchange fluctuations and depreciation costs. The Jakarta Post quotes the telco’s finance director Stefan Carlsson as saying that the firm does not expect to see ‘a big change’ in Q2 2013, noting: ‘We will not book profits but losses because of depreciation and almost entirely due to the currency.’ The carrier booked a year-on-year loss of IDR71 billion (USD7.17 million) in the January-March 2013 period, largely attributable to FOREX losses and a change in the way Indosat calculates depreciation values. Further, the operator says it must pay IDR4 trillion of debt that falls due this year, of which around IDR1.8 trillion was paid in Q1 2013. The remainder of the debt (IDR2.2 trillion) is due in August, with Carlsson noting that it will not use bank loans to finance the debt.

Indonesia, Indosat Ooredoo Hutchison (IOH)