For immediate release:
NET INCOME GREW 54.0% IN THE FIRST HALF 2007
REFLECTING SUSTAINABLE GROWTH
INDOSAT COMMITMENT FOR INVESTMENT TO BUILD TELECOMMUNICATION
NETWORKS REACHES RP 9 TRILLION IN THE FIRST HALF 2007
Jakarta, 22 August 2007. PT Indosat Tbk (“Indosat” or “the Company”) announced today its limited review of financial results for period ended 30 June 2007. The Company recorded the first half 2007 net income of Rp.845.1 billion or grew 54.0% compared to first half 2006. The Company recorded operating revenues and operating income for the period ended 30 June 2007 amounting to Rp7,690.2 billion and Rp2,028.0 billion or grew 33.3% and 29.4% respectively. Cellular, fixed data (multimedia, data communication and internet) services, and fixed voice services remains its contribution of 77%, 13%, and 10% to operating revenues, respectively.
Indosat has submitted the reports to Bapepam, Jakarta Stock Exchange, and Surabaya Stock Exchange. Purwantono, Sarwoko & Sandjaja, a member of Ernst & Young Global is the Company’s independent auditor.
The company has changed its reporting format into gross revenue due to implementation of cost based interconnection which has started since January 2007. Under the new format, the Company reported both interconnection revenues and expenses on the profit and loss statement while under the previous format, the Company only reported net of interconnection on the profit and loss statement.
Cellular revenues grew by 37.4% compared to last year which is mainly driven by the increase of 20 million subscribers, or a total net add of 3.3 million subscribers from end of 2006. The postpaid subscribers (Matrix) as well as prepaid subscribes (Mentari and IM3) increased due to additional coverage, improvement in service quality and stronger brand positioning.
The operating revenues from fixed data services grew 9.9%, from Rp927.3 billion in first half of 2006 to Rp.1,018.7 billion in first half of 2007. The increase in fixed data revenues was primarily contributed by the growth of demand in Leased Line, IPVPN and internet due to the increase of demand from wholesale and corporate customers.
Operating revenues from fixed voice services also increased from Rp.548.9 billion to Rp.774.4 billion or grew by 41.1% on a year-on-year basis due to increase in international call (IDD 001, IDD 008 and Flat Call 01016) revenue especially for incoming call traffic and increase in fixed wireless services revenue (Star One) with more additional cities offered by this service.
service in Indonesia, hence; more people will get benefit from Indosat telecommunications services.
“Indosat achievement in this first half 2007 was contributed by the increasing demand of our cellular, fixed data and fixed voice services. We also had committed to invest in telecommunication networks as the largest investment that Indosat had made since its operations. We will continue our commitment to build telecommunication networks and have never weary to continue enhancing our services to benefit our customers. To realize the commitment we will increase investment plan to USD 1.2 billion and at the same time revising our additional subscribers of 6 – 7 million in 2007, “said Johnny Swandi Sjam, President Director of Indosat.
The Company’s financial statements were prepared in accordance with the Indonesian Generally Accepted Accounting Principles.
Financial Results Summary with Yearly Comparison (for period ended 30 June 2007)
In Rp billion (unless stated) 2006 2007 (%) Change
Operating Revenues 5,767.1 7,690.2 33.3%
Operating Expense 4,199.3 5,662.2 34.8%
Operating Income 1,567.8 2,028.0 29.4%
Net Income 548.8 845.1 54.0%
EBITDA1) 3,306.1
4,053.0 22.6%
1) EBITDA: Earning before interest, tax, depreciation and amortization
Operational Results Summary with Yearly Comparison. (for period ended 30 June 2007)
Description 2006 2007 Change
Cellular subscribers (million) 13.9 20.0 44.3%
Fixed Wireless subscribers (000) 208.1 483.4 132.3%
BTS 6,248 8,366 33.9%
As the consequences of our aggressive network roll out program, the Company have experienced increase in frequency fee and other related expenses. However, the Company was able to manage the expenses prudently. This is exhibited with Indosat’s effort to maintain its EBITDA margin. In this first half 2007, EBITDA margin was recorded 57.4% (or equal to 52.7% in gross revenue format).
“Indosat also put significant attention and high commitment in Good Corporate Governance in the company including in our financial statement for the best interest of its stakeholders, “added Johnny Swandi Sjam, President Director of Indosat.
About Indosat
Indosat Tbk is a leading telecommunication and information service provider in Indonesia that provides cellular services (Mentari, Matrix and IM3), IDD service (IDD 001, IDD 008 and FlatCall (01016), fixed telecommunication services (StarOne, I-Phone). Indosat also provides Multimedia, Internet & Data Communication Services (MIDI) through Indosat and its subsidiary company, Indosat Mega Media (IM2) and Lintasarta. In addition, Indosat provides 3G with HSDPA technology up to 3,6 Mbps. Indosat's shares are listed in the Jakarta and Surabaya Stock Exchange (JSX:ISAT) and its American Depository Shares are listed in the New York Stock Exchange (NYSE:IIT).
For further information please contact: Corporate Secretary
Telp : 62-21-3869614 Fax : 62-21-3804045
E-mail: [email protected]
Investor Relations Division Telp : 62-21-3869615 Fax : 62-21-3804045
E-mail : [email protected] Website: www.indosat.com
Disclaimer :
This document contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of Indosat, that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements are subject to risks and uncertainties that may cause actual events and Indosat's future results to be materially different than expected or indicated by such statements. No assurance can be given that the results anticipated by Indosat, or indicated by any such forward looking statements, will be achieved.
