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Jakarta Post

Indosat’s loss widens despite revenue growth in first half

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, July 30, 2020   /   06:02 pm
Indosat’s loss widens despite revenue growth in first half Officers provide services to customers at an Indosat Ooredoo counter in Jakarta on July 2. (JP/Dhoni Setiawan)

Telecommunications company PT Indosat, which owns the brand Indosat Ooredoo, saw its loss widen in the first half of the year due to a currency loss and higher employee costs despite a growth in its revenue.

The publicly listed company recorded a loss of Rp 341.1 billion (US$23.49 million) as of June, 2.8 percent higher than the loss it booked in the same period last year, according to its financial report filed with the Indonesia Stock Exchange (IDX) on Wednesday.

Its total revenue jumped 9.4 percent year-on-year (yoy) to Rp 13.45 trillion during the period as cellular revenue rose 11.8 percent annually to Rp 11.1 trillion.

The company saw a 7.6 percent increase in total costs to Rp 12.36 trillion as employee costs went up 43 percent to Rp 1.43 trillion following its organizational rightsizing. Meanwhile, its net currency loss amounted to Rp 54.29 billion from a gain of Rp 18.08 billion booked in the same period last year.

“Despite the disruption caused by the pandemic, we remain on track with our turnaround plan and I expect to see sustainable performance growth trends maintained in the quarters ahead,” said Indosat Ooredoo CEO and president director Ahmad Al-Neama in a statement on Wednesday.  

Indosat, he added, had accelerated its network rollout plan to ensure network resilience and uptime to cater to its customers’ growing needs.

Indosat’s cellular subscriber number stood at 57.2 million at the end of June, a 0.9 percent yoy growth with data traffic growth reaching 61 percent annually.

Previously, the company reported that its data traffic rose 27 percent from pre-pandemic numbers during the Idul Fitri holiday in May as people stayed at home to curb the spread of the coronavirus.

Stocks of Indosat, traded at the Indonesia Stock Exchange (IDX) with the code ISAT, plunged 1.71 percent on Thursday as the main gauge, the Jakarta Composite Index (JCI), gained 0.75 percent. The stocks have lost almost 21 percent of their value so far this year. (eyc/prm)