PT Telkom posts Rp 1.47t net income through September<\/p>\n
JAKARTA (JP): Publicly listed PT Telekomunikasi Indonesia
\n(Telkom) announced on Thursday an unaudited net income of Rp 1.47
\ntrillion (US$210 million) for the first nine months of the year
\nending Sept. 30.<\/p>\n
The state telecommunications monopoly said the net profit
\nfigure represented a 352 percent increase over the corresponding
\nperiod in 1998.<\/p>\n
It attributed the increase to a growth in total operating
\nrevenue, a decrease in loss on foreign exchange and the
\nturnaround of investment income from a net loss to a net gain.<\/p>\n
During the first nine months, Telkom's operating revenues grew
\nby 18.7 percent to Rp 5.74 trillion from Rp 4.83 trillion in the
\ncorresponding period last year.<\/p>\n
Telkom's operating revenue is derived from its telephone
\nservice, joint operation (KSO) scheme partners, interconnection
\nfees and other services.<\/p>\n
Telkom said all of its operating revenue sources showed a
\nconsiderable increase with telephone service, the company's core
\nbusiness, contributing the most with Rp 3.34 trillion. This
\nfigure reflected a 20.5 percent increase from Rp 2.77 trillion
\ngained in the first nine months last year.<\/p>\n
Revenue from telephone service was not necessarily affected by
\nthe considerable amount of subscription cancellations -- 135,083
\nresidential subscribers (73 percent of the total canceled),
\n49,272 business subscribers (26.2 percent) and 659 social
\nsubscribers (0.4 percent) -- made during the period.<\/p>\n
Telkom said yields from interconnection revenue -- an
\nobligatory fee paid by other telecommunications operators for
\nconnecting their network to Telkom's during domestic or
\ninternational calls -- rose 54.27 percent to Rp 631 billion in
\nthe first nine months this year from Rp 409 billion in the same
\nperiod last year.<\/p>\n
Revenue from KSO partners rose slightly by 5.9 percent to Rp
\n1.25 trillion from Rp 1.18 trillion paid in the same period last
\nyear, the company said.<\/p>\n
The KSOs are a consortium of local and foreign firms that hold
\n15-year concessions to build and operate local fixed-line
\ntelecommunications nationwide, except for in Jakarta and East
\nJava, until 2010.<\/p>\n
As of Sept. 30 this year, Telkom and its KSO partners had 5.94
\nmillion lines in service, consisting of 3.17 million lines in
\nTelkom's Jakarta and East Java regions and 2.76 million lines in
\nKSO regions.<\/p>\n
Relationships between Telkom and its partners had eroded due
\nto differences interpreting the terms of their contracts.<\/p>\n
The company said discussions were held with KSO investors to
\nrehabilitate deteriorated relationships and settle differences.
\nNew agreements resulting from the discussions are expected to
\ncommence as of January 2000.<\/p>\n
Telkom said the other factor driving positive growth for the
\nfirst nine-month period was a significant drop in the loss of
\nforeign exchange to Rp 227 billion from Rp 1.56 trillion endured
\nin the same period last year.<\/p>\n
Telkom said it used the conversion rate of Rp 6,765 to the
\nU.S. dollar, based on the Dow Jones telerate on Oct. 27, for the
\ncalculation of revenue.<\/p>\n
Another driving factor in the earning rise was the increase in
\ninterest income and a turnaround of investment income into a net
\ngain, the company said.<\/p>\n
Telkom has at least eight subsidiaries and 13 affiliates, most
\nof which are local firms operating in telecommunications and
\nrelated businesses.<\/p>\n
Telkom received Rp 568 billion in dividends from its
\nsubsidiaries, which is higher than the Rp 358 billion gained in
\nthe same period in 1998.<\/p>\n
The company also enjoyed a net gain in equity income of Rp 86
\nbillion in the first nine months, compared to a net loss of Rp 27
\nbillion it endured in the same period last year.<\/p>\n
Over the period, the company recorded earnings of Rp 154.01
\nper share, reflecting an increase of 352.1 percent compared to
\nthe same period in 1998.<\/p>\n
Telkom's shares are listed on the Jakarta, Surabaya, New York
\nand London stock exchanges. (cst)<\/p>",
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