PT Telkom posts Rp 1.47t net income through September
PT Telkom posts Rp 1.47t net income through September
JAKARTA (JP): Publicly listed PT Telekomunikasi Indonesia
(Telkom) announced on Thursday an unaudited net income of Rp 1.47
trillion (US$210 million) for the first nine months of the year
ending Sept. 30.
The state telecommunications monopoly said the net profit
figure represented a 352 percent increase over the corresponding
period in 1998.
It attributed the increase to a growth in total operating
revenue, a decrease in loss on foreign exchange and the
turnaround of investment income from a net loss to a net gain.
During the first nine months, Telkom's operating revenues grew
by 18.7 percent to Rp 5.74 trillion from Rp 4.83 trillion in the
corresponding period last year.
Telkom's operating revenue is derived from its telephone
service, joint operation (KSO) scheme partners, interconnection
fees and other services.
Telkom said all of its operating revenue sources showed a
considerable increase with telephone service, the company's core
business, contributing the most with Rp 3.34 trillion. This
figure reflected a 20.5 percent increase from Rp 2.77 trillion
gained in the first nine months last year.
Revenue from telephone service was not necessarily affected by
the considerable amount of subscription cancellations -- 135,083
residential subscribers (73 percent of the total canceled),
49,272 business subscribers (26.2 percent) and 659 social
subscribers (0.4 percent) -- made during the period.
Telkom said yields from interconnection revenue -- an
obligatory fee paid by other telecommunications operators for
connecting their network to Telkom's during domestic or
international calls -- rose 54.27 percent to Rp 631 billion in
the first nine months this year from Rp 409 billion in the same
period last year.
Revenue from KSO partners rose slightly by 5.9 percent to Rp
1.25 trillion from Rp 1.18 trillion paid in the same period last
year, the company said.
The KSOs are a consortium of local and foreign firms that hold
15-year concessions to build and operate local fixed-line
telecommunications nationwide, except for in Jakarta and East
Java, until 2010.
As of Sept. 30 this year, Telkom and its KSO partners had 5.94
million lines in service, consisting of 3.17 million lines in
Telkom's Jakarta and East Java regions and 2.76 million lines in
KSO regions.
Relationships between Telkom and its partners had eroded due
to differences interpreting the terms of their contracts.
The company said discussions were held with KSO investors to
rehabilitate deteriorated relationships and settle differences.
New agreements resulting from the discussions are expected to
commence as of January 2000.
Telkom said the other factor driving positive growth for the
first nine-month period was a significant drop in the loss of
foreign exchange to Rp 227 billion from Rp 1.56 trillion endured
in the same period last year.
Telkom said it used the conversion rate of Rp 6,765 to the
U.S. dollar, based on the Dow Jones telerate on Oct. 27, for the
calculation of revenue.
Another driving factor in the earning rise was the increase in
interest income and a turnaround of investment income into a net
gain, the company said.
Telkom has at least eight subsidiaries and 13 affiliates, most
of which are local firms operating in telecommunications and
related businesses.
Telkom received Rp 568 billion in dividends from its
subsidiaries, which is higher than the Rp 358 billion gained in
the same period in 1998.
The company also enjoyed a net gain in equity income of Rp 86
billion in the first nine months, compared to a net loss of Rp 27
billion it endured in the same period last year.
Over the period, the company recorded earnings of Rp 154.01
per share, reflecting an increase of 352.1 percent compared to
the same period in 1998.
Telkom's shares are listed on the Jakarta, Surabaya, New York
and London stock exchanges. (cst)