Telkom enjoys profit after first-half loss
Telkom enjoys profit after first-half loss
JAKARTA (JP): State-owned telecommunications firm PT Telkom
reported on Monday a 71 percent decrease in net profit to Rp
326.1 billion (US$38.6 million) during the first nine months of
this year from a Rp 1.13 trillion surplus in the same period of
last year.
The company said in a statement that the negative growth in
profit was caused mainly by foreign exchange losses, amounting to
Rp 1.56 trillion.
During the first nine months of 1998, it said, total operating
revenue grew 10.4 percent to Rp 4.8 trillion from Rp 4.38
trillion in the comparable period of 1997.
Results, however, were battered by the company's expanding
foreign debts, which had become more expensive to repay following
the rupiah's collapse.
The rupiah has lost some 70 percent of its value against the
U.S. dollar since the crisis started to engulf the country in
July last year.
As of the end of September, the company had US$330 million in
U.S. dollar debts, of which less than 15 percent was hedged. It
also had 11.93 billion in Japanese yen-denominated debt, of which
less than 3 percent was hedged. The company also has some foreign
debt denominated in French francs and Dutch guilders.
On account of the relatively large unhedged foreign debt, the
company booked a foreign exchange loss of Rp 1.56 trillion during
the first nine months of this year, compared to Rp 146 billion in
the corresponding period of last year.
The company's domestic debt had also become more burdensome in
terms of its servicing due to soaring interest rates. The company
had Rp 4.97 trillion worth of rupiah debt as of the end of
September.
Interest expenses rose to Rp 359 billion in the first nine
months, almost four times the Rp 94 billion in the same period of
1997.
The profit report for the first nine months of this year
surprised the market, considering that the company booked a net
loss of Rp 1.18 trillion in the first six months of 1998.
During the third quarter of 1998 alone, Telkom booked Rp 1.5
trillion net profit compared to Rp 306 billion a year ago as the
rupiah rebounded strongly against the U.S. dollar during the
quarter.
Sales in the quarter rose to Rp 1.6 trillion from Rp 1.51
trillion.
The company's total assets were Rp 23.76 trillion as of Sept.
30, compared to Rp 19.1 trillion at the end of 1997.
Following the release of the profit report, Telkom's shares on
the Jakarta Stock Exchange surged Rp 75 to close at Rp 2,625 on
Monday, leading a 3 percent rise in the benchmark index. Telkom
accounts for 17 percent of market capitalization. (29)