Tuesday, March 09, 2010

Indosat 2009 net profit falls 20%

Indonesian satellite operator hit by rising cost of operations, lower revenue.

PT Indonesia Satellite Corp., or Indosat, said Monday its 2009 net profit fell 20% mostly because of lower revenue and the higher cost of operations.Net profit for the January-to-December period fell to IDR1.5 trillion from IDR1.88 trillion in the previous year.Total revenue fell 1.4% to IDR18.39 trillion from IDR18.66 trillion by the end of 2008.

The cost of operations rose 9% to IDR15.18 trillion from IDR13.93 trillion in the previous year."(On a quarterly basis) we have shown an improvement in terms of the operational and financial sides," Indosat Chief Executive Harry Sasongko said.He said Indosat had an additional 4.4 million new subscribers in the fourth quarter of 2009, which helped contribute a 37% increase in revenue from cellular services from the previous quarter. Revenue in the fourth quarter of 2009 rose to IDR18.4 trillion from IDR13.4 trillion by the end of the third quarter.By the end of 2009, its total subscribers were at 33.1 million, down 9.3% from 36.5 million in the previous year.Indosat is 55.79% owned by Qatar Telecom Pte Ltd.

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