Excelcomindo posts first quarterly profit since 3Q 2004

1 Mar 2006

Indonesia’s third largest mobile network operator Excelcomindo Pratama reported net income of IDR52.4 billion (USD5.66 million) in the fourth quarter of 2005, compared with a loss of IDR27.2 billion in the corresponding year-ago period, its first quarterly profit since the third quarter of 2004. The company, which is controlled by Telekom Malaysia, said a stronger local currency helped it to book IDR87.3 billion of foreign exchange gains, reversing a forex loss of IDR53.8 billion a year ago. On the downside, rising costs and higher foreign exchange losses from the depreciation of the rupiah during the course of 2005, served to worsen full year net losses which reached IDR224.1 billion, up from IDR45.3 billion, and worse than analyst forecasts of IDR119.4 billion. Excelcomindo’s operating income declined to IDR95.6 billion in the fourth quarter from IDR142.7 billion a year ago, despite a 20% rise in its revenues from mobile services. The cello controlled 6.979 million of the country’s 40 million-plus mobile market at the end of the year, well behind market leader Telkomsel which had 24.3 million users – a market share of 54%.

Indonesia, XL Axiata