Indosat profit drops 20%

PT Indosat Tbk, controlled by Q-Tel, reported net profit of Rp1.88 trillion last year, dropped 20% from 2008 on squeezed margin.

Indosat reported sales revenue of Rp18.66 trillion last year, lower by 1.4%, while its operating expenses grew 9% to Rp15.18 trillion. The company's debts increased 17% to Rp25.47 trillion, while its subscribers declined 9.3% to 33.1 million.

The stock gained 3.6% to close at Rp5750 today on broader market sentiment. At that price, Indosat currently has market capitalization of Rp31.24 trillion, No. 21 on IDX below Indofood (INDF).

Q-Tel acquired 40.8% shares in Indosat in 2008, later raising its ownership to 65% in a bid to tap the growth potential in the fourth largest most populous country in the world. Indosat stock has gained 21.7% so far this year, but still below its peak last year (Rp6050).

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