Foreign exchange gain pushes up Telkom's earnings<\/p>\n
JAKARTA (JP) Domestic telecommunications provider PT Telkom
\nIndonesia reported on Friday a 85.9 percent increase in net
\nincome but the surge failed to incite investors.<\/p>\n
Its consolidated income statement for 1999 showed a surge in a
\nnet earning to Rp 2.17 trillion (US$283.55 million) thanks to the
\nturnaround in its foreign exchange income from a net loss in 1998
\nto a net profit in 1999.<\/p>\n
The company's shares lost more than three percent to close at
\nRp 3,900 from Rp 4,025 in the previous day despite the hefty
\nincrease.<\/p>\n
Analysts said corporate investors gave a cool response to the
\nreport as most of them considered the rise in the profit was
\nstill below the market expectation.<\/p>\n
The net profit announced by the company resulted in an
\nearnings per share of Rp 225.2.<\/p>\n
The company's income statement also showed a 18 percent
\nincrease in operating revenue to Rp 7.79 trillion from Rp 6.60
\ntrillion in the January to December period in 1998. It also
\nrevealed a 21.2 percent increase in total operating expenses from
\nRp 4 trillion to Rp 4.84 trillion the previous year.<\/p>\n
This resulted in a 13.2 percent increase in operating income
\nfrom Rp 2.59 trillion in 1998 to Rp 2.94 billion in 1999.<\/p>\n
The company used a rate of Rp 7,660 to the U.S. dollar in its
\nfinancial report.<\/p>\n
The company said net additional lines-in-service during 1999
\nwas 508,549, a 13.7 percent fall from the 589,178 booked the
\nprevious year. Of the net additional lines-in-service, 242,168
\nwere added in Telkom's own operational areas, while the other
\n266,381 came from areas operated by the company's KSO profit-
\nsharing partners.<\/p>\n
Telkom and its KSO partners recorded 6.08 million lines-in-
\nservice as of Dec. 31 last year, consisting of 3.25 million
\nlines-in-service in Telkom regions and 2.82 million lines-in-
\nservice in KSO areas.<\/p>\n
According to the company's report, the number of active
\ncellular subscribers in Indonesia rose by 108.4 percent to 2.22
\nmillion from 1.06 million in the same period in 1998.<\/p>\n
Cellular operator Telkomsel's subscribers increased 141.5
\npercent to 1.02 million, the highest growth of the country's
\nseven cellular operators.<\/p>\n
Satelindo's subscribers increased by 106.2 percent to 715,489;
\nExcecomindo's rose by 125.5 percent to 383,000; Metrosel's was up
\nby 42.6 percent to 41,424; and Mobisel subscribers increased by
\n7.8 percent to 12,801.<\/p>\n
The number of subscribers to cellular operators Komselindo and
\nTelesera dropped by 52.6 percent and 1 percent, respectively,
\ndespite the rise in total demand during the year.<\/p>\n
Telkom said that as of Dec. 31, 1999, its total loan portfolio
\nreached a total of Rp 9.21 trillion, about 51 percent of which
\nwas denominated in rupiah, with the remainder in foreign
\ncurrencies. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-exchange-gain-pushes-up-telkoms-earnings-1447893297",
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