Indonesia’s third-biggest telecoms operator by subscribers PT Indosat booked a net profit of IDR283 billion (USD24 million) in the first six months of this year, reversing a IDR169 billion net loss in the corresponding period last year, thanks to efforts to reduce costs and the positive impact of foreign currency transactions. In a statement published in the local Investor Daily last Friday, Indosat said six-month revenue decreased marginally by 0.8% year-on-year to IDR11.6 trillion, although operating costs declined by 2.6% to IDR10.2 trillion. The company also booked a foreign-currency gain of IDR252 billion, compared to a loss of IDR392 billion in January-June last year.
As previously reported by CommsUpdate, last month Indosat moved to secure a USD450 million revolving credit facility with tenure of less than five years from a number of banks. Speaking at the time, the firm’s investor relations officer Andromeda Tristanto said that Indosat was in the process of finalising the agreement which will be secured in 3Q14, with the funds set to be used to refinance debt due this year. The operator is known to have IDR2 trillion in debt that matures in H2 2014. Indosat – a subsidiary of Qatar-based telecoms group Ooredoo – continues to face an intensely competitive domestic market, reflected in its lower revenues for the first half of the year. At 30 June 2014 Indosat’s total customer base stood at 55 million, compared to 56.6 million a year earlier.