Indosat Q3 net losses soar to IDR1.912tn, but 9M14 losses down 25%

11 Nov 2014

PT Indosat, Indonesia’s third largest telecommunications operator by subscribers, has published its reviewed interim financial statements for the third quarter and nine months to 30 September 2014, as prepared in accordance with Indonesian Financial Accounting Standards (IFAS). The operator reported a net loss of IDR1.912 trillion (USD157.36 million) for the three-month period under review, compared to net loss of IDR210.6 billion in the corresponding period of 2013, although 9M14 losses of IDR1.323 trillion were a 25.1% improvement on the IDR1.766 trillion loss it booked in 9M13. Indosat said the loss per share in 9M14 was IDR243.47, a significant improvement compared to a loss per share of IDR325.04 in 9M13, mainly due to an increase in operating profit, a decrease in losses on foreign exchange currency fluctuations, and a one-time gain on the sale of its investment in Tower Bersama (TBIG) shares.

Indosat delivered total revenue of IDR6.104 trillion in the July-September quarter, up 4.5% year-on-year, while nine-month revenue of IDR17.727 trillion was down marginally from IDR17.799 trillion previously. Third-quarter EBITDA improved by 6.1% to IDR2.569 trillion, although for the nine-months it decreased by 4.6% y-o-y to IDR7.600 trillion; EBITDA margin was 42.1% (3Q14) and 42.9% (9M14), respectively. For January-September, Indosat said revenue from cellular, fixed data (MIDI) and fixed voice businesses contributed 81%, 14%, and 5% respectively to the company’s consolidated revenue.

The operator had a total of 54.2 million cellular customers at 30 September 2014, down 1.3% quarter-on-quarter, although (blended) ARPU was up 6.3% q-o-q at IDR28,300 and total data traffic (in terabytes) climbed 9.0% from 19,185TB to 20,911TB. Minutes of use (MOU), however, edged down marginally by 1.9% to 78.1 per user. Indosat had a total of 37,382 base transceiver stations (BTS) on its network at 30 September 2014, up from 23,207 a year earlier, of which 15,962 were 3G-enabled (4,993: 3Q13).

Separately, an unconfirmed report in Trade Finance magazine says that Indosat is considering an unsecured bond issuance over its originally planned USD900 million loan, which sources close to the firm say may have a 30-year maturity – suggesting a much bigger project is in the pipeline. Since launching requests for proposals (RFPs) in July, Indosat has remained tight-lipped on the future of the loan transaction.

Indonesia, Indosat Ooredoo (incl. IM2)