Telkom reports drop in Q3 earnings

31 Oct 2007

Indonesia’s largest telecoms operator by subscribers, PT Telkom, posted net profit of IDR3.19 trillion (USD350.2 million) in the three months ending 30 September (based on Reuters’ calculations), down 6.15% from IDR3.4 trillion a year ago, as lower revenues from its mobile business and fixed line interconnections impacted on its bottom line. Analysts surveyed by Reuters had expected the firm to report a 22.2% rise in Q3 profits, but the implementation of the government’s new interconnection policy resulted in Telkom booking IDR100.13 billion of interconnect charges in the period under review, compared with IDR2.25 trillion in the third quarter of 2006. The fall came despite a 17.4% rise in overall revenues to IDR15.5 trillion; mobile revenues at the group’s 65%-owned Telkomsel unit were down 2.5% to IDR5.3 trillion.

Telkomsel is Indonesia’s largest mobile phone operator in terms of customers with around 56% of the country’s roughly 75 million subscribers. It continued to grow in the period July-September, reporting 44 million mobile users by the start of October, up from 35 million at the end of 2006.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)