Telkom hopeful of big profits on strength of mobile gains

26 Apr 2004

PT Telekomunikasi Indonesia (Telkom) is later this week expected to post a 20% rise in Q1 profits for the three months to 31 March 2004 on the back of a strong performance from its mobile operations. Telkom is forecast to announce net profits of between IDR1.8 trillion to IDR2.1 trillion (USD208.8 million to USD243.6 million), up from IDR1.66 trillion for the corresponding period of 2003, driven by mobile arm Telkomsel, which is expected to announce a 40% jump in profits to IDR1.23 trillion. At the end of March 2004 the cellco had 10.75 million customers in an estimated 20.5 million-strong cellular market; it boosted its customer base by 60% to 9.6 million in 2003. Telkom’s performance has also been aided by an improving fixed line market following the introduction of tariff adjustments, including a 28% hike in local call charges which took effect this month.