For immediate release:
INDOSAT BOOKED 1Q NET INCOME Rp 484 BILLION OR INCREASE 26%
Indosat cellular customers 18 million or increase 39%
Jakarta, 23 May 2007. PT Indosat Tbk (“Indosat” or “the Company”) announced today its limited review of financial report for period ended at 31 March 2007. 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.
In line with market practice, the Company, this year reported its operating revenues on a gross basis. This new reporting format has resulted in an increase in operating revenues and at the same time, an increase in interconnection expenses which has impacted the EBITDA margin.
For the period ended at 31 March 1007, the Company recorded operating revenues of Rp.3.78 trillion or increase by 30.2% compared with similar period last year. Operating income was Rp.1.04 trillion or increase 22.8% compared to the same period last year. Therefore we recorded net income of around Rp484 or grew significantly by 26% compared to last year.
Cellular, fixed data (multimedia, internet and data communication) services, and fixed voice services contributed 77%, 13%, and 10% to operating revenues, respectively.
”Indosat performance showed a significant increase in financials and operations. The increase performance was strongly driven by the growth of cellular operating revenues,” said Kaizad B. Heerjee, Deputy President Director of Indosat.
Indosat cellular operating revenues grew by 33.5% in the first quarter 2007 from the first quarter 2006 driven by the strong net add of 5 million new subscribers and increasing cellular voice calls and SMS. At end March 2007, we had almost 85 million SMS per day driven by our cellular subscribers of Mentari, IM3 and Matrix. We now operate 7,634 cellular BTS.
As the first operator introduced the seluler 3.5G/HSDPA services in 2006 with high speed data services up to 3.6 Mbps, this services are now available in 16 cities in Indonesia. “We are proud to firstly introduce the 3.5G services and now the services are becoming popular for our subsribers”, continue Kaizad.
Financial Results Summary with Yearly Comparison (for period ended 31March 2007)
In Rp billion (unless stated) 2006 2007 (%) Change
Operating Revenues 2,899.6 3,774.8 30.2%
Operating Expense 2,051.2 2,733.0 33.2%
Operating Income 848.4 1,041.8 22.8%
Net Income 383.9 483.9 26.0%
EBITDA1) 1,684.9 2,018.7 19.8%
1)
EBITDA: Earning before interest, tax, depreciation and amortization
Operational Results Summary with Yearly Comparison. (for period ended 31March 2007)
Description 2006 2007 Change
Cellular subscribers 12,956,180 18,020,816 39.1%
Fixed Wireless subscribers 238,688 434,217 81.9%
BTS 5,971 7,666 1,695
On May 16, 2006, Indosat gained approval from BAPEPAM to issue Indosat Bond V of Rp2,600 billion and Sukuk Ijarah II of Rp400 billion of totaling Rp3 trillion for capex program. Indosat Bond V are divided by two series which series A will mature in seven years amounting of Rp1,230 billion while series B will mature in ten years amounting of Rp1,370 billion. Indosat Sukuk Ijarah II of Rp400 billion will mature in seven years.
”The demand of investors of Indosat bonds recently showed investor’s confidence on Indosat business and its prospects. We will continue and maintain the growth momentum during 2007 and focus to launch more marketing innovative programs and expand our coverage and improve service quality significantly”, said Kaizad.
About Indosat
Indosat is a leading telecommunication and information provider that provides: cellular (Mentari, Matrix and IM3), Multimedia, Data communications and Internet (MIDI), and fixed telecommunication services which comprises of IDD (IDD 001, IDD 008 and FlatCall 01016) and fixed wireless services (StarOne). Indosat's shares are listed on the Jakarta and Surabaya Stock Exchange (JSX: ISAT) and its American Depository Shares are listed on the New York Stock Exchange (NYSE:IIT).
For further information please contact: Corporate Secretary
Fax : 62-21-3804045
E-mail: investor@indosat.com
Public Relations Division Telp : 62-21-3869625 Fax : 62-21-3812617
E-mail : publicrelations@indosat.com
Website: www.indosat.com
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.
