Telkom's profit falls 23.3% to Rp 1.15 trillion

JAKARTA (JP): Publicly listed telecommunications firm PT Telekomunikasi Indonesia (Telkom) announced yesterday a 23.3 percent fall in net profits to Rp 1.15 trillion (US$115.2 million) last year from Rp 1.5 trillion in 1996.

The company said the profit fall was mainly due to foreign exchange losses from the rupiah's 49 percent depreciation against the U.S. dollar during the year.

Telkom said it had foreign exchange losses worth Rp 948 billion, offset by Rp 226 billion in foreign exchange gains -- a net loss of Rp 722 billion.

The company listed Rp 424 billion of its net loss under other expenses on its income statement, while listing the remaining Rp 298 billion under an account called construction in progress.

The company has consolidated a Rp 298 billion share of net losses from long-term investments, citing its affiliates' increased preparations to cover doubtful debts and foreign exchange losses.

Telkom reported a 16.4 percent increase in revenue to Rp 5.90 trillion in 1997 from Rp 5.07 trillion in 1996, citing increased revenues from telephone operations, joint-operating schemes (KSOs) and interconnections.

The company said telephone operations revenue climbed 17 percent to Rp 3.20 trillion in 1997 from Rp 2.74 trillion in 1996, while revenue from KSOs increased 10 percent to Rp 1.64 trillion from Rp 1.49 trillion in 1996. Interconnection revenue rose 85 percent to Rp 572.77 billion last year from Rp 309.77 billion in 1996.

Telkom said its telephone operations revenue accounted for 54 percent of its total revenue in 1997, while its KSOs accounted for 28 percent and interconnections for 10 percent.

"The remaining eight percent is from other telecommunication services," the company said.

Telkom recorded total assets of Rp 19.96 trillion as of December 1997, with its long-term debts, including current maturities, swelling 28 percent to Rp 6.126 trillion in 1997.

"As a result, the ratio between long-term debt to total capitalization rose 38.9 percent in 1997 from 35 percent in 1996," the company said.

Telkom, listed on the Jakarta and New York stock exchanges, said about 72 percent of its total loan portfolio was denominated in rupiah with the remainder in foreign currencies.

"The company has a total of US$273.7 million (in debts) denominated in American dollars with only 4.8 percent of it hedged," the company said. (aly)