Telkom posts 6.7% rise in profits for 2009

9 Apr 2010

Indonesia’s largest operator by subscribers and revenues, PT Telekomunikasi Indonesia (Telkom), reported net income of IDR11.33 trillion (USD1.24 billion) last year, up 6.7% from the IDR10.61 trillion it booked in 2008, driven mainly by strong growth from its cellular and internet operations. Telkom president Rinaldi Firmansyah said the group’s performance was underpinned by a 25% increase in mobile subscribers to 81.6 million at PT Telekomunikasi Selular (Telkomsel), which helped to push group revenues up 6.4% year-on-year from IDR60.70 trillion to IDR64.59 trillion. Telkomsel accounted for 42% of overall revenue in fiscal 2009: it booked full-year sales of IDR27.2 trillion, up 7.5% y-o-y, and net income of IDR11 trillion, up from IDR9.60 trillion previously. Telkomsel hopes to hit the 100 million subscriber barrier this year, with its president Sarwoto Atmosutarno projecting the market will grow to 200 million mobile users by the end of the year.

Nevertheless, Telkom’s star performer last year in terms of revenue contribution was its internet and data arm which reported a 25.8% rise in revenue on an annualised basis, from IDR14.7 trillion to IDR18.5 trillion – accounting for 29% of total revenues. Telkom is experiencing strong demand for its Speedy and Flash broadband packages. The fixed line broadband service (Speedy) recorded an 86% increase in revenues in FY2009 to IDR2.60 trillion, while its mobile broadband service (Flash) leapt 350% y-o-y to IDR540 billion. On a less positive note, Telkom’s traditional fixed line business declined 11.3% y-o-y in revenues terms, to IDR8.60 trillion, largely the result of fixed to mobile substitution – a trend which is expected to continue in 2010. However, to offset this, Telkom plans to invest IDR20 trillion in infrastructure and acquisitions this year, of which IDR13 trillion will be allocated to Telkomsel.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)