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elecommunication giant PT Telekomunikasi Indonesia, known as Telkom, reported a profit increase of 17 percent last year, thanks to higher revenues and efficiency measures.

Telkom, the fourth-largest firm on the bourse by market capitalization, booked Rp 12.85 trillion (US$1.3 billion) in net profits last year from Rp 10.96 trillion year-on-year.

Despite its two-digit growth in net profits, the company’s revenues rose by 8.3 percent, hitting Rp 77.14 trillion in 2012 from Rp 71.25 trillion a year earlier.

“The increase in net profits was the result of the combination of a growing top line and more efficiency,” Telkom finance director Honesti Basyir said.

According to its financial report, Telkom’s operational costs only rose by 2.6 percent to Rp 16.8 trillion in 2012 from Rp 16.37 trillion a year earlier.

Along with manageable operational costs, Telkom also enjoyed Rp 2.56 trillion nonoperational income last year, increasing massively from the Rp 665 billion in 2011.

Honesti attributed the nonoperational income as earnings from non telecommunication businesses, including Pay TV, tower lease, directory services, its rural telecommunication network called Universal Service Obligation (USO) and customer-premises equipment (CPE) — devices such as routers, switches and modems located on clients’ premises and connected to the telecommunication’s carrier channel.

Telkom currently has a number of subsidiaries, including PT Telekomunikasi Selular (Telkomsel) in which it owns 65 percent of shares, tower and infrastructure provider PT Dayamitra Telekomunikasi and Pay TV provider Telkomvision.

Honesti said that the company now saw an increasingly balanced contribution from voice and message, data service, internet services and other information technology sectors.

According to Honesti, Telkom’s total subscribers reached 171 million as of the end of 2012, increasing by around 32 percent from 129.8 million at the end of 2011.

As many as 125.1 million of its total subscribers as of December 2012 are cellular clients, whose number increased by 17 percent from to that of 2011.

Honesti said that its number of broadband subscribers increased the most by 82.8 percent. The company’s fixed broadband users, through a product called speedy amounted to 2.3 million while mobile broadband clients amounted to 11 million as of the end of December last year.

Meanwhile, as many as 5.8 million are BlackBerry users, 8.9 million fixed landline users and 17.9 million fixed wireless Flexi users.

Honesti said that Telkom had expected to book further growth and exceed the industry’s average growth this year.

“For the top line, we are targeting about a 7 to 8 percent increase. For the number of subscribers, we are targeting double-digit growth and this growth will depend on competition in the market,” Honesti said.

The country has seen the number of SIM cards holders surpassing the population size, one signal that the telecommunication business has reached its saturation point. Telecommunication companies now seek to maintain its business by widening services to data and Internet.

Shares in Telkom (TLKM) closed at Rp 11,100 apiece on Wednesday, increasing by 5.71 percent from a day earlier. TLKM was the top stock mover on Wednesday trading, pushing the benchmark Jakarta Composite Index (JCI) ending at its new highest record of 4,824.68.

Telkom’s market capitalization stood at Rp 224 trillion, or about 4.8 percent of the bourse’s total market capitalization of Rp 4,675 trillion as of Wednesday.