Telkom's net profit up in first quarter<\/p>\n
JAKARTA (JP): Publicly listed domestic telecommunication
\nprovider PT Telkom Indonesia announced on Tuesday a consolidated
\nnet income of Rp 751.94 billion (US$94.22 billion) for the first
\nquarter of this year.<\/p>\n
Telkom said the figure reflected an increase of 145.7 percent
\non the Rp 306 billion it earned in the same period last year.<\/p>\n
Earnings per share were Rp 74.6, an increase of 9.35 percent
\nover the same period last year.<\/p>\n
The company said the high increase in net income resulted from
\na higher growth in total operating revenues than in operating
\nexpenses as well as a decrease in the other net expenses.<\/p>\n
The company, which is also cross-listed on the New York and
\nLondon stock exchanges, used a conversion rate of Rp 7,980
\nagainst the U.S. dollar in calculating its first quarter
\nfinancial statements.<\/p>\n
During the first quarter this year, Telkom's total operating
\nrevenues grew by 27 percent to Rp 2.22 trillion from Rp 1.75
\ntrillion over the same period last year.<\/p>\n
While its total operating expenses rose by 13.4 percent to Rp
\n1.12 trillion in the first quarter this year from Rp 990.24
\nbillion in the corresponding period last year.<\/p>\n
Foreign exchange losses reached Rp 258.8 billion in the first
\nquarter this year, but the loss could be offset by the company's
\ngain from foreign exchange of Rp 30.6 billion during the three
\nmonth period.<\/p>\n
As of March 31 this year, Telkom and its five multinational
\npartners in the joint operation scheme (KSO) were operating a
\ntotal of 6,185,793 active telephone lines, comprising of
\n3,307,166 lines in Telkom regions and 2,878,627 lines in KSO
\nregions.<\/p>\n
Under the KSO agreement signed in 1995, Telkom appointed five
\nconsortia of local and foreign firms to finance, build and
\noperate two million telephone lines, a number which was later
\nrevised to 1.2 million lines, in five regions across the country
\nuntil 2010 under a revenue-sharing scheme. The regions are
\nSumatra, West Java, Central Java\/Yogyakarta, Kalimantan and
\neastern parts of Indonesia.<\/p>\n
Due to the prolonged impact of the economic crisis, during the
\nfirst quarter, Telkom and its KSO partners lost 42,255
\nsubscribers -- of which 20.8 percent were business subscribers,
\n78.1 percent residential subscribers and 1.1 percent social
\nsubscribers.<\/p>\n
Telkom, which is controlled by the government with a 66.19
\npercent stake, has the exclusive rights to provide local fixed
\nline calls until 2010 and domestic long distance calls until
\n2005.<\/p>\n
The government said, however, it would arrange for an early
\ntermination of the right as part of its plan to allow Telkom to
\nshift from being a fixed line telecom operator to a full network
\nservice operator with the capability of providing both fixed line
\nand mobile phone local and international telephone calls.<\/p>\n
On March 31, the communication ministry granted Telkom a
\nlicense in principle to operate a cellular service based on DCS-
\n1800 technology with nation-wide coverage.<\/p>\n
Telkom is currently proceeding with the administration
\nrequirements, including the frequency allocation, of the license.
\n(cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkoms-net-profit-up-in-first-quarter-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}