PT Telkom nets 17% rise in net profit

JAKARTA (JP): State-owned PT Telkom reported yesterday a 17 percent increase in net profit to Rp 821 billion (US$305.2 million) in the first half of 1997 over the same period last year.

The growth rate was lower than 44.91 percent recorded in the first semester last year.

The company said its operating revenue rose 21 percent to Rp 2.87 trillion in the January-to-June period this year over the same period last year. Operating revenue increased 22 percent in the same period in 1996.

"The increase in net income and operating revenues was largely attributed to Telkom's continued growth in the lines in service (LIS), pulse production, KSO (joint operation) schemes and increased interconnection revenue with other telecommunications operators," the company said.

Telkom's earnings per share increased to Rp 87.96 ($0.65 per American Depository Share) in the first half of this year from Rp 75.2 ($0.64) in the first half of 1996.

The company reported the number of installed telephone lines (including public phones and pay phones) reached 4.51 million as of June 30, a 22.4 percent increase from 3.68 million in June 1996.

LIS per 100 inhabitants increased to 2.26 as of June 30 this year from 1.85 in the first half of 1996.

"During the first half of 1997, we added 326,554 LIS compared with 395,612 LIS in the same period in 1996."

Telkom said it believed the slower growth in LIS was partly due to the slower growth in installed lines, technical problems with wireless local loop and increased cellular penetration.

Out of the 4.51 million lines, 2.48 million lines have been installed in the greater Jakarta area and East Java which are managed by Telkom, while the remainder in other areas of the country are managed by five private firms under 15-year contracts with Telkom.

Subscribers rose by 22.3 percent to 4.4 million from 3.6 million during the same period in 1996.

The company said call traffic rose by 20 percent to 23.81 billion pulses in the January-June period this year from 19.83 billion pulses in the same period last year. The 20 percent figure was much less than 30.37 percent reached in the first half in 1996.

Telkom, which is listed on the Jakarta, Surabaya, London and New York stock exchanges, said that its subscribers are comprised of business (23.72 percent), residential (75.85 percent) and social (0.42 percent).

During the first half of 1997, total assets grew by 11.4 percent to Rp 18.3 trillion; property, plant and equipment by 24.6 percent to Rp 13.73 trillion; long-term debts (including current maturities) by 11.6 percent to Rp 5.03 trillion and stockholders' equity by 17 percent to Rp 9.3 trillion.

Total long-term debt to total capitalization decreased to 35.1 percent in the first half of 1997 from 36.19 percent in the first half of 1996. (icn)