Press Release 1Q 2007
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.
We had an increase in demand of fixed telephone services including fixed wireless services and
fixed data services or MIDI. Operating revenues from Fixed Data (MIDI) services continued to
grow by 8.3%, from Rp456 billion in the first quarter 2006 to Rp494 billion in the first quarter
2007 due to increase demand of leased line, IP-VPN and internet dedicated services from
corporate customers. Operating revenues from Fixed Voice services increased from Rp272
billion to Rp 382 or grew by 40.5% year-on-year basis due to the new reporting format for
interconnection and increase revenue of international call (IDD) and fixed wireless services.
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%
1,684.9
2,018.7
19.8%
EBITDA1)
1)
EBITDA: Earning before interest, tax, depreciation and amortization
Operational Results Summary with Yearly Comparison.
(for period ended 31March 2007)
Description
Cellular subscribers
Fixed Wireless subscribers
BTS
2006
2007
Change
12,956,180
18,020,816
39.1%
238,688
434,217
81.9%
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
Telp : 62-21-3869614
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.
This document is not an offer of securities for sale in the United States. Securities may not be offered or
sold in the United States absent registration or an exemption from registration. Any public offering of
securities to be made in the United States will be made by means of an offering circular that may be
obtained from the Company and will contain detailed information about the Company and management,
as well as financial statements. The Company does not intend to register any part of the offering in the
United States.
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.
We had an increase in demand of fixed telephone services including fixed wireless services and
fixed data services or MIDI. Operating revenues from Fixed Data (MIDI) services continued to
grow by 8.3%, from Rp456 billion in the first quarter 2006 to Rp494 billion in the first quarter
2007 due to increase demand of leased line, IP-VPN and internet dedicated services from
corporate customers. Operating revenues from Fixed Voice services increased from Rp272
billion to Rp 382 or grew by 40.5% year-on-year basis due to the new reporting format for
interconnection and increase revenue of international call (IDD) and fixed wireless services.
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%
1,684.9
2,018.7
19.8%
EBITDA1)
1)
EBITDA: Earning before interest, tax, depreciation and amortization
Operational Results Summary with Yearly Comparison.
(for period ended 31March 2007)
Description
Cellular subscribers
Fixed Wireless subscribers
BTS
2006
2007
Change
12,956,180
18,020,816
39.1%
238,688
434,217
81.9%
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
Telp : 62-21-3869614
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.
This document is not an offer of securities for sale in the United States. Securities may not be offered or
sold in the United States absent registration or an exemption from registration. Any public offering of
securities to be made in the United States will be made by means of an offering circular that may be
obtained from the Company and will contain detailed information about the Company and management,
as well as financial statements. The Company does not intend to register any part of the offering in the
United States.