Telkom reports highest profit growth in four quarters

29 Jul 2005

Indonesia’s largest telecoms services provider PT Telekomunikasi Indonesia (Tekom) has reported its highest profit growth in four quarters, thanks to strong revenue returns from its cellular business and reduced foreign-exchange losses. Telkom earned IDR2 trillion (USD204 million) in the three months to end-June, up from IDR858.7 billion a year ago, as faster economic growth helped fuel demand for telecoms services. Sales rose by 20% to IDR10 trillion in 2Q driven by its cellular arm, PT Telekomunikasi Selular (Telkomsel) which boosted its subscriber base to 22.5 million in the period, 38% higher than the same time last year. Telkomsel, the second largest mobile network operator in Indonesia and 35%-owned by SingTel, hopes to increase its total number of customers to 25 million by the end of 2005. Foreign exchange losses fell from IDR1.2 trillion to IDR180.6 billion. Telkom, which earns money in local currency, has had to spend more in rupiah terms to pay its dollar-denominated overseas debts, which stood at USD750 million in May.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)