Telkom tipped to post 14% profit gain<\/p>\n
Soraya Permatasari, Bloomberg\/Jakarta<\/p>\n
PT Telekomunikasi Indonesia, the nation's biggest phone company,
\nmay say 2004 profit rose 14 percent after adding sales with low
\ncall rates and an expanded network, even as competition from
\noverseas companies intensified.<\/p>\n
Net income probably rose to Rp 6.94 trillion (US$737 million)
\nin the year ended Dec. 31, from Rp 6.09 trillion a year earlier,
\naccording to the median estimate of seven analysts surveyed by
\nBloomberg. Bandung-based Telekomunikasi, or Telkom, is scheduled
\nto publish full-year earnings by March 31. Sales rose an
\nestimated 26 percent, the company, which does not report
\nquarterly figures, said earlier.<\/p>\n
Telekom Malaysia Bhd., Southeast Asia's second-largest phone
\ncompany, is among cell-phone companies that are entering
\nIndonesia drawn by high subscriber growth rates. Telkom, which
\nboosted its mobile user base 67 percent last year, helped by
\nlower rates, is well-placed to defend its 54 percent market
\nshare, analysts said.<\/p>\n
\"Telkom has been able to react positively to competition,\"
\nVerdi Budiman, an analyst at Merrill Lynch & Co., said. The
\ncompany is expected to \"continue posting positive income growth
\nin years to come.\" Budiman has a \"buy\" recommendation on the
\nstock.<\/p>\n
Sales rose to an estimated Rp 34.2 trillion, from Rp 27.1
\ntrillion in 2003, Telkom said on Feb. 17.<\/p>\n
\"Telkom will remain a market leader because it's got an
\nextensive network already,\" said Ferry Yosia Hartoyo, an analyst
\nat DBS Vickers Securities, who has a \"buy\" recommendation on the
\nstock.<\/p>\n
Hartoyo, whose forecast was the highest in the survey, said he
\nexpects Telkom to report profit of Rp 7.99 trillion for last
\nyear, which implies fourth-quarter net income of Rp 2.97
\ntrillion.<\/p>\n
Telkom's mobile-phone revenue, which made up about a third of
\nthe company's total revenue, increased 26 percent last year,
\nBudiman said.<\/p>\n
One-third of Telkom's revenue is from fixed-line services,
\nwhich gained about 16 percent in 2004, he said. Internet and data
\nconnection services accounted for 13 percent of sales in the
\nfirst nine months, the company said.<\/p>\n
Telkom's main mobile unit, PT Telekomunikasi Selular, or
\nTelkomsel, had 16 million subscribers at the end of 2004, up from
\n9.6 million. Telkom has two smaller cellular units with a total
\nof about 43,000 subscribers as of September 2004.<\/p>\n
Telkom increased its mobile-phone market share from 51 percent
\nin 2003. Closest rival PT Indosat held 32 percent at the end of
\n2004, unchanged from a year earlier.<\/p>\n
Faster economic growth has encouraged demand for
\ntelecommunications in Indonesia, where about one in six people
\nhas phone access. The $222 billion economy expanded 5.1 percent
\nlast year, the fastest growth since 1996.<\/p>\n
Even so, the company's shares have fallen 5.2 percent this
\nyear after surging 43 percent in 2004, when the Jakarta Composite
\nIndex gained 45 percent. The benchmark index added 10 percent
\nthis year. The stock gained 25 rupiah, or 0.6 percent, to 4,575
\nrupiah at the close of trading in Jakarta on Monday.<\/p>",
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