State telecommunications firm PT Telekomunikasi Indonesia (Telkom) posted Rp 2.8 trillion (US$310.8 billion) in profits in the first quarter of 2010, a 13 percent increase on last year's first quarter profits.
Telkom president director Rinaldi Firmansyah said Friday that the increase in net profits was the result of the company's strategy of focusing on new wave business and reducing operating costs, for example, by offering an early retirement program for employees.
The telecom company reported increasing its operating income by 6.2 percent to Rp 16.6 trillion.
The new wave business - which includes data, Internet and information technology - contributed 30.1 percent to the total operating income compared to last year's figure of 25.7 percent.
Telkom finance director Sudiro Asno said in term of contributions, that operating income from the fixed line phone segment had decreased from 23 percent last year to 20 percent in this year's first quarter.
The cellular phone segment still contributed 40 percent of operating income, just as in last year's figures.
Currently, Telkom has a total customer base of 106.3 million subscribers. Cellular phone subscribers made the bulk of Telkom's customers with 82 million customers, an increase of 13.6 percent on last year.
In term of earnings before interest, taxes, depreciation and amortization (EBITDA), Telkom reported an increase by 5.5 percent to Rp 9 trillion in this year's first quarter.
"The firm believes the EBITDA will be enough to pay this year's debt and other expenses," Rinaldi said.
Sudiro said Telkom must repay as much as Rp 7.8 trillion in debts this year adding that Telkom would issue Rp 3 trillion of bonds, effective as of June 24.
"Currently, we also have stand-by-loan from banks representing a total of Rp 3 trillion that are ready to be used any time," he added.
The company's total assets also increased to Rp 96.5 trillion in the first quarter this year, or 5.5 percent higher than last year's first quarter.
Telkom shares advanced 2 percent to Rp 7,850 as of 3:52 p.m. Friday, set for their steepest increase since A pril 5. (rch)
