Result: Indosat sees recovery, KDDI plans cost cuts

Robert Clark
26 Oct 2009

Indosat has foreshadowed an improved third quarter while KDDI is still feeling the heat of competition in Japan’s mobile market.

Indosat’s net fell 1.6% for the first nine months, as revenue declined 1.8% and costs grew nearly 5%, the company said.

But CEO and president director Harry Sasongko said Q3 sales rose 5% over last year, even though customer numbers had fallen by a fifth.

“On a quarterly basis, our cellular revenues increased by more than 5% in the 3rd quarter of 2009, which demonstrates that our value strategy is beginning to show positive results,” he said. The Indonesian cellco will unveil its quarterly result on October 28.

KDDI’s operating income fell 4.5% in the first half of the financial year as revenue declined 1.4%.

For the second half the Japanese operator said it aimed to cut inventory and the cost of handset procurement and introduce new handsets and content.

It would rationalize network operations by closing low-use facilities and moving some operations in-house. It planned a major streamlining of its core network and transmission over the next seven years, it said.

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