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Fri, 07 Nov 2003

JP/Telkom's Q3 net profit plunges by 42.23 percent

Telkom's Q3 net profit plunges by 42.23 percent

The Jakarta Post, Jakarta

Publicly listed PT Telkom stated on Thursday that although it had recorded growth in operating revenue during the third quarter, its consolidated net profit dropped by 42.23 percent to Rp 4.37 trillion (US$486.42 million), from Rp 7.57 trillion in the same period in 2002.

Telkom's net profit had dropped sharply compared to the previous year, when the company made huge gains from the shares sale in its cellular subsidiary Telkomsel, the company said a statement. Telkom sold 12.72 percent shares in Telkomsel to telecommunication giant SingTel in 2002 for Rp 3.19 trillion ($377.51 million).

Meanwhile, its operating revenue grew by 27.87 percent to Rp 19.97 trillion in the third quarter, from Rp 15.62 trillion a year ago.

Telkom identified the main contributors to growth as: increase in revenue from data and Internet (100.24 percent), network (46.80 percent), interconnection (43.80 percent) and cellular (38.06 percent) services.

Data and Internet services revenue reached Rp 2.1 trillion, the bulk of which was provided by short messaging service (SMS) revenue at Rp 1.5 trillion. The other contributors were Voice on Internet Protocol (VoIP) and Internet services at Rp 258.5 billion and Telkomnet Instan at Rp 342.4 billion.

Network revenues amounted to Rp 329.9 billion, a 46.8 percent increase primarily resulting from increase in transponder leases and leased channels.

Telkomsel has also experienced strong growth in cellular subscribers. As of Sept. 30, the company recorded 8.79 million subscribers, a 75.98 percent increase compared to 2002.

New subscribers in the third quarter numbered 2.78 million, 59.48 percent higher than the number of new subscribers during the first nine months of 2002.

Fixed phone revenues totaled Rp 7.1 trillion, including Rp 35.9 billion from the newly launched fixed wireless line service, TelkomFlexi.

The government is planning to increase the fixed line telephone rate by an average of 15 percent before the end of this year to try and encourage investment in the sector.