Telkom reports slight increase in net profit<\/p>\n
JAKARTA (JP): State-owned telecommunications provider PT
\nTelkom, reported on Wednesday a 1.4 percent increase in net
\nprofit in 1998 to Rp 1.16 trillion (about US$137.5 million) from
\nRp 1.15 trillion in 1997.<\/p>\n
The company said net earnings per share (EPS) in the year
\nended Dec. 31 rose slightly to Rp 125.21 from Rp 123.44 in the
\nprevious year.<\/p>\n
\"Slow growth in net income was caused mainly by the
\nsubstantial interest expenses and net loss on foreign exchange,
\nwhich amounted to Rp 981 billion and Rp 965 billion respectively,
\nresulting from the depreciation of the rupiah since the beginning
\nof 1998,\" Telkom's corporate secretary Bambang Suselo said.<\/p>\n
He said that the slow growth rate was also caused by higher
\ninterest rates during the year.<\/p>\n
Bambang said that total operating revenue increased by 12
\npercent to Rp 6.6 trillion in 1998 from Rp 5.90 trillion in the
\nprevious year.<\/p>\n
Total operating expenses rose by 18 percent to Rp 4 trillion
\nfrom Rp 3.38 trillion in the same period. This resulted in a 2.9
\npercent increase in operating income to Rp 2.60 trillion from Rp
\n2.52 trillion.<\/p>\n
As of Dec. 31, 1998, 51 percent of the total loan portfolio
\nwas denominated in rupiah and 49 percent in foreign exchange
\ncurrencies whereas in 1997, 72 percent of the total loan
\nportfolio was denominated in rupiah and 28 percent in foreign
\ncurrencies, Bambang said.<\/p>\n
The debt breakdown is Rp 4.89 trillion in rupiah, US$367.1
\nmillion, 14.115 billion yen, 154.9 million French francs and 25.7
\nmillion Dutch guilders.<\/p>\n
Telkom's total foreign exchange loss reached a total of Rp
\n1.64 trillion, which was partly offset by a Rp 342 billion
\nforeign exchange gain.<\/p>\n
Of the resulting net foreign exchange loss of Rp 1.30
\ntrillion, Rp 965 billion was charged to other expenses in the
\nincome statement and Rp 337 billion was capitalized to
\nconstruction in progress.<\/p>\n
For its income statement, the company used a rupiah exchange
\nrate of Rp 9,100 to the dollar, compared to Rp 8,550 last year.
\nOver the course of 1998, the rupiah sank to all-time lows of Rp
\n17,000 to the dollar.<\/p>\n
Due to renegotiation of the revenue-sharing agreement with
\nTelkom's joint-operating partners in June, revenue under the
\njoint operation scheme fell 3.3 percent to Rp 1.59 trillion from
\nRp 1.64 trillion last year.<\/p>\n
Each of Telkom's partner companies includes at least one
\nforeign operator. Among the main investors are France's Cables &
\nRadio (in Sumatra); U.S. West International (in West Java);
\nTelstra Corp. of Australia's (TLS) Telstra Global Ltd. (in
\nCentral Java); UK's Cable & Wireless PLC (CWP) (in Kalimantan)
\nand Singapore Telecommunications Ltd.'s (P.SGT) Singapore Telecom
\nInternational (in East Indonesia).<\/p>\n
In addition, Telkom said it had requested a $50 million loan
\nfrom the World Bank to finance its Year 2000 program. Telkom said
\nthe bank had already agreed to allocate the funding. (hen)<\/p>",
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