Telkom reports 19.46% increase in H1 earnings

Telkom reports 19.46% increase in H1 earnings

JAKARTA (JP): Publicly listed state-owned telecommunications
company PT Telkom announced on Thursday a 19.46 percent increase
in consolidated net income to Rp 1.7 trillion (US$196.6 million)
for the first six months of this year compared to the same period
in 2000.

The company said in a statement that earnings per share was Rp
170.69, or Rp 3,413.71 earnings per American Depository Share
(ADS).

Total operating revenue jumped by 31.13 percent to Rp 7.4
trillion in the first half of 2001 from Rp 5.6 trillion in the
same period the previous year.

Meanwhile total operating expenses surged by 34.46 percent to
Rp 3.7 trillion between January and June this year compared to
the same period of last year, the company said.

Telkom said that operating income increased to Rp 3.6 trillion
in the first half of this year compared to Rp 2.8 trillion in the
same period last year.

Earnings before interest, tax, depreciation and amortization
for the first half of 2001 increased by 25.38 percent to Rp 4.98
trillion compared to Rp 3.97 trillion in the first half of last
year.

Telkom said that long-term debt as of June 30 totaled the
equivalent of Rp 13 trillion, of which 32.16 percent was in
rupiah and 67.84 percent in foreign currencies.

In the first half of 2001, the company spent Rp 900 billion on
capital expenditures, of which about Rp 287 billion was spent on
infrastructure development, Rp 454 billion for phone, mobile,
view and Internet services (PMVIS) and Rp 159 billion for
supporting facilities.

As of June 30, 2001, Telkom and its joint operation (KSO)
units operated 6.9 million fixed lines in service, consisting of
3.8 million lines in service in Telkom regions and 3.1 million
lines in KSO regions.

Net additional lines in service between January and June this
year were 265,598 lines, 8.93 percent higher than the 243,817 net
additional lines in service during the same period last year.

Some 79,938 subscribers canceled their phone connections
during the first half of the year, a decrease of 17.89 percent
compared to the comparable period last year.

Active cellular subscribers as of June 30, 2001 totaled 4.7
million, or a hefty 71 percent increase from last year's 2.7
million.

Cellular companies Telkomsel recorded 2.2 million subscribers,
Satelindo 1.4 million subscribers, Komselindo 51,300 subscribers,
Excelcomindo 925,000 subscribers, Mobisel 11,809 subscribers,
Metrosel 74,760 subscribers and Telesera 8,852 subscribers.

Telkom reported that as of July the elimination of cross
ownerships between the company and state-owned telecommunications
company PT Indosat had resulted in a 35 percent purchase of
Telkomsel, and sales of 37.66 percent of PT Aplikanusa Lintasarta
and 22.5 percent of Satelindo to Indosat.

During this period the company also acquired 90.32 percent of
PT Dayamitra Telekomunikasi, 100 percent ownership of PT Graha
Sarana Duta and sold its 25 percent ownership in PT Tangara
Mitrakom.

On July 9, 2001, Telkom terminated its cooperation with PT
AriaWest International -- its KSO partner for West Java and
Banten -- on the grounds that AriaWest had failed to fulfill its
obligations, including paying minimum Telkom revenue (MTR) for
the past 14 months, totaling Rp 509 billion.(tnt)