Indosat Second-Quarter Net Doubles on Currency Gains
PT Indosat, Indonesia’s second-largest telecommunication services provider, doubled second-quarter profit on foreign-exchange gains.
Net income climbed to 887.5 billion rupiah ($88.2 million) from 441.9 billion rupiah a year earlier, according to figures Bloomberg derived by subtracting first-quarter earnings from six-month results announced today. Sales fell 3.1 percent to 4.42 trillion rupiah. Adita Irawati, a spokeswoman for the Jakarta-based company, confirmed the second-quarter profit in a phone interview.
The earnings rose mainly because of foreign-exchange gains, Irawati said. She declined to provide further details, saying Indosat will release audited results next week. The number of phone subscribers fell because the company deleted non-active users from its system to improve the quality of service, Irawati said. The reduction in customers didn’t affect revenue, she said.
Indosat fell 4.7 percent to close at 5,100 rupiah on the Indonesian Stock Exchange after the earnings were announced. The shares have fallen 11 percent this year, compared with a 68 percent gain in the benchmark Jakarta composite index.
The company had 28.9 million subscribers at the end of June, compared with 32.4 million a year earlier, Indosat said in a statement today.
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