Indosat’s Q3 net profit climbs 10.5% on subscriber gains

10 Nov 2015

Indonesian publicly listed telco Indosat has reported that net income climbed 10.5% year-on-year to IDR19.58 trillion (USD1.44 billion) for the three months ending 30 September 2015, up from IDR17.72 trillion, fuelled by the company’s success in attracting new users on the back of its network upgrade and expansion work. The country’s second-biggest operator by subscribers reported that operating profit for the period under review spiked by 284.3% to IDR1.89 trillion in Q3 2015, and earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12.8% to IDR8.60 trillion; EBITDA margin was 43.8%. Further, Indosat noted a 2.7% increase in operating expenses, which it attributed to a higher ‘telecommunication service burden, depreciation and amortisation, wages, marketing expenses and administrative and general expenses’.

Indosat closed out 30 September with a total of 69.0 million mobile subscribers, up 27.3% from 54.2 million at the same time a year earlier, with cellular services contributing 82% of the operator’s consolidated income. Indosat’s debt level at end-September had edged up 5.1% y-o-y after it took new loans to accelerate its plan to pay off US dollar denominated bonds.

Indonesia, Indosat Ooredoo Hutchison (IOH)