Telkom, Excelcomindo, Bakrie Telecom report rising profits

1 Nov 2006

Three of Indonesia’s leading telecoms service providers, PT Telekomunikasi Indonesia (Telkom), mobile operator PT Excelcomindo Pratama (Excelcom) and CDMA-based fixed wireless operator PT Bakrie Telecom, have reported strong profit rises in the first nine months of 2006 on the back of impressive subscriber gains. Incumbent Telkom posted a 62% rise in net profits in the period January-September, buoyed by a strong rupiah which eased its currency debt burden, reports The Jakarta Post. Net income for the nine-month period reached IDR9.22 trillion (USD1 billion), up from IDR5.7 trillion in the corresponding period of 2005, and total sales rose to IDR37.2 trillion, up from IDR30.2 trillion previously, bolstered by strong gains at its mobile division. Telkom booked a foreign exchange gain of IDR677.75 billion in the first nine months, compared with a loss of IDR886.58 billion a year earlier.

GSM mobile operator Excelcom earlier reported a 59% rise in revenues to IDR1.54 trillion in the first nine months of 2006, up from IDR972 billion a year earlier, driven by substantial growth in subscriber numbers. The operator had 8.4 million customers at the end of September, up 43% on the 5.9 million reported at end-September 2005. Net income rose to IDR142 billion in the third quarter, and earnings before interest, taxes, depreciation and amortisation (EBTIDA) rose by 57% to IDR712 billion. Capital expenditure reached IDR988 billion in the first nine months of 2006, up 11% year-on-year, as the company increased the number of base transceiver stations (BTS) in service by 67% to 6,052, from 3,620 previously.

Meanwhile, PT Bakrie Telecom booked a net profit of around IDR52 billion in the January-September period, reversing a net loss of IDR112 billion last time round. Gross revenues were up a massive 131% to IDR588 billion, while net revenues rose by 159% to IDR427 billion – again attributed to strong subscriber growth. The number of people signed up to the company’s fixed wireless access service, Esia, stood at 1.3 million by the end of September, up from 307,000 twelve months earlier. Esia currently covers a number of cities in West Java, including Bogor, Serang, Cirebon, Purwakarta, Tasikmalaya, Ciamis and Cianjur, in addition to Jakarta, Tangerang and Depok. Bakrie Telecom plans to expand its footprint to another seven cities in West Java by the end of the year.

Indonesia, Bakrie Telecom (BTel), Telkom Indonesia, XL Axiata