Indosat full year revenue up 1% to USD1.85bn; plans to raise USD154m to repay debt

31 Mar 2015

Indonesia’s third largest telecoms operator by subscribers, PT Indosat, says consolidated revenues increased by 1.0% year-on-year to IDR24.085 trillion (USD1.85 billion) for the twelve months ended 31 December 2014, compared to IDR23.855 trillion the previous year. Growth was driven primarily by cellular revenues, which increased by 0.5% y-o-y to IDR19.481 trillion, fuelled by higher data and value added service (VAS) contributions, although lower fixed telecom sales of IDR1.096 trillion (down 9.8%) were only partially offset by a 7.4% increase in fixed data turnover to IDR3.509 trillion. Indosat attributed the sharp fall in fixed revenue sales to lower international direct dial (IDD) revenues and transfer of customers from fixed wireless access (FWA) services to cellular services. Operating costs climbed by 4.8% to IDR23.412 trillion from IDR22.346 trillion in FY 2013, and EBITDA fell 3.1% to IDR10.059 trillion, although net loss attributable to shareholders narrowed to IDR1.987 trillion, compared to a loss of IDR2.782 trillion a year earlier. CAPEX of IDR6.443 trillion in FY 2014 was directed primarily on network modernisation, plus capacity and coverage expansion to cater for future demand needs for fixed and mobile data.

Indosat closed out December 2014 with a total of 63.2 million mobile subscribers, up 6.1% (or 3.6 million) over FY 2013, of which 62.4 million were pre-paid (+6.2%). Monthly blended ARPU of IDR27,200 was slightly below the IDR27,500 reported in the year-earlier period, and average minutes of use fell faster to 78.4 per month, from 93.0 minutes in FY 2013. The company operated 40,229 base transceiver stations (BTS) as of 31 December 2014, including 2G (22,166) and 3G (18,063) BTS, having added a total of 15,949 BTS in the twelve-month period (2G: 3,295, 3G: 12,654). Further, Indosat’s FWA CDMA network counted 1,550 BTS, 37 base station controllers and eight mobile switching centres at the same date.

In a separate development, Indosat – which is 65%-owned by Ooredoo Asia – has confirmed plans to raise USD154 million from a bond offering planned for either May or June in order to repay its debts. The Jakarta Post notes that Indosat will use the bonds’ proceeds to pay back some of the USD650 million in guaranteed notes due 2020. ‘The issuance value will depend on market conditions,’ said Indosat finance director Curt Stefan Carlsson.

Indonesia, Indosat Ooredoo Hutchison (IOH)