Telkom’s H1 net profit down 4.9%, subscribers up

31 Jul 2008

PT Telekomunikasi Indonesia (Telkom) reported first-half net income of IDR6.3 trillion (USD690.9 million), down 4.9% from IDR6.6 trillion in the corresponding period of 2007, and missing analyst forecasts of about IDR6.7 trillion. The company, which is Indonesia’s biggest firm with a market valuation of USD17.5 billion, said 1H 2008 revenue rose 5.9% to IDR30.18 trillion, fuelled by growth at cellular division Telkomsel, but added that the rapidly expanding mobile sector had attracted new entrants, leading to increased competition and pressure on operating margins.

In the second quarter, Telkom recorded a worse-than-expected 13.7% fall in net profit of IDR3.09 trillion (according to Reuters calculations, based on its published first-half and first-quarter results), down from IDR3.58 trillion a year ago. The figure was short of a median market forecast for a second-quarter net profit of IDR3.45 trillion.

Indonesia, Telkom Indonesia