Telkom reports rising revenues, profits in Q1

27 May 2008

Indonesia’s largest telecoms company by subscribers and revenues, PT Telekomunikasi Indonesia (Telkom), reported net profit of IDR3.21 trillion (USD344.3 million) for the three months ended 31 March 2008, up from IDR3 trillion in the corresponding period of 2007, but below analysts’ consensus forecasts of net income of IDR3.37 trillion. The slightly lower-than-expected 5.4% rise in first-quarter net profit came despite strong growth at its mobile phone business, Telkomsel. Although the state-backed operator is anticipating increased competition and tougher economic conditions in 2008, it predicts full-year revenue growth of between 11%-12% in 2008, up from IDR59.44 trillion in 2007.

Telkomsel’s average revenue per user (ARPU) fell 13% year-on-year to IDR67,000 in the period ending 31 March 2008, due to lower tariffs in a competitive market, but said that average minutes of use increased, leading to higher revenues. The mobile arm’s subscriber base increased 32% to 51.34 million in the year to March, driving Telkom’s revenue 8.5% higher to IDR15.03 trillion.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)