Excelcom reverses 2005 loss with higher than expected 2006 profits

23 Feb 2007

Indonesian mobile operator Excelcomindo (Excelcom), the third largest player in the market behind Telkomsel and Satelindo, says it returned to profit in 2006 thanks to FOREX gains and a strong operating performance. Excelcom exceeded market expectations, posting net profit of IDR651.9 billion (USD71.8 million), compared with a loss of IDR224.1 billion in FY2005. The operator’s 2006 net profit was 19% higher than the consensus poll of IDR545.6 billion forecast by Reuters Estimates. The figure was aided by a foreign exchange gain of IDR344.8 billion, compared with a loss of IDR362.3 billion previously. Excelcom’s operating profit climbed nearly 80% to IDR1.03 trillion while revenue rose 53% to IDR4.7 trillion. The cellco ended the year with 9.5 million mobile users, thanks to 2.5 million net new additions during the year. It aims to increase this to 15 million by end-2007.

Excelcom is a 59.67%-owned unit of Indocel Holding, itself a wholly owned subsidiary of Telekom Malaysia International Limited. Excelcom’s other shareholders are: the Malaysian government’s investment holding arm, Khazanah Nasional Berhad (16.81%); PT Telekomindo Primabhakti (15.97%), a subsidiary of Rajawali Corporation; AIF (Indonesia) Limited (7.38%), a British Virgin islands registered company which operates under the management of Hong Kong-based private fund AIF Capital; and employees and public (0.17%). Excelcom has a market capitalisation of USD1.8 billion.

Indonesia, Telkomsel (Telekomunikasi Selular), XL Axiata