Complete copies of the un-audited balance sheets and income statements for the first half 2010 are attached to this press release. For complete versions of these documents, please visit http://www.telkom.co.id.
For the first half 2010, TELKOM recorded an increase in total revenue of Rp 1,631 billion or 5% compared with the same period in 2009. The increase is mainly attributable to a rise in Data, Internet and IT Services revenue of Rp 1,558 billion or 18%. Cellular revenue increased by Rp 439 billion or 3%, while Fixed Line revenue declined by Rp 760 billion or 10% compared to first half 2009.
Operating Expenses for the first half increased by Rp 1,849 billion or 9%. The increase is primarily due to a rise in Operating and Maintenance Expenses of Rp 1,394 billion, or 20%, and an increase in Depreciation and Amortization Expenses of Rp 737 billion or 11% as a result of the Node B (3G) expansion, as well as the roll out of additional domestic and international backbone to support the broadband business in the future, for both fixedline and mobile. Personnel Expenses and General and Administration Expenses declined by Rp 213 billion and Rp 119 billion, respectively.
The decrease in gain on foreign exchange of Rp 439 billion compared to the previous period led to an increase in Other Expenses-net of Rp 440 billion or 1,124% and resulted net income of Rp 6.0 trillion. Meanwhile, TELKOM saw an increase in EBITDA of Rp 529 billion, representing growth of 2.9%, as it rose from Rp 18,253 billion to Rp 18,782 billion.
We added 6.7 million new cellular customers during first half 2010, an increase of 16.2% to 88.3 million total subcribers. Meanwhile, our fixed broadband services reached 1.4 million subscribers, representing growth of73.6% compared to the same period last year.
A summary of the balance sheet, income statements and operational highlights follows:
| | H1/2009 | H1/ 2010 | % Increase (decrease) |
| (In Billion Rp.) | |||
| Total Assets | 94,258.5 | 99,050.3 | 5.1 |
| Total Liabilities | 51,652.2 | 49,429.6 | (4.3) |
| Minority Interest | 8,495.5 | 9,747.5 | 14.7 |
| Total Equity | 34,110.8 | 39,873.3 | 16.9 |
| Operating Revenue | 32,612.0 | 34,243.1 | 5.0 |
| Operating Expense | 21,034.9 | 22,883.6 | 8.8 |
| Operating Income | 11,577.1 | 11,359.5 | (1.9) |
| Net Income | 6,043.8 | 6,003.3 | (0.7) |
| EBITDA | 18,253 | 18,782 | 2.9 |
| EBITDA Margin (%) | 56.0 | 54.8 | (1.2) |
The Financial Statements are prepared in according with Generally Accepted Accounting Standards in Indonesia
| | Unit | H1/2009 | H1/2010 | % Increase (decrease) | |
| Line in Service: | | | | | |
| - Wireline | Subs (000) | 8,706 | 8,397 | (3.5) | |
| - Wireless | Subs (000) | 13,491 | 15,896 | 17.8 | |
| Total Fixed Lines | Subs (000) | 22,197 | 24,293 | 9.4 | |
| Customer Base Cellular: | | | | | |
| - kartuHALO | Subs (000) | 2,017 | 2,098 | 4.0 | |
| - simPATI | Subs (000) | 53,613 | 60,201 | 12.3 | |
| - Kartu As | Subs (000) | 20,384 | 26,017 | 27.6 | |
| Total Customer Base Cellular | Subs (000) | 76,014 | 88,316 | 16.2 | |
| ADSL (Speedy) | Subs (000) | 816 | 1,416 | 73.6 | |
| MOU Cellular | Billion minutes | 68.1 | 58.5 | (14.1) | |
| ARPU Cellular/month | Rp. '000 | 47 | 43 | (9) | |
The Consolidated Statements reflect certain changes imposed by the Financial Accounting Standards Board of the Indonesian Institute of Accountants, effective January 1, 2010. Whereas Interconnection revenue in the Statement of Income was previously presented on a netbasis, it is now shown on a gross basis. Interconnection expenses are included as operating expenses. Outgoing Interconnection revenue,which was previously classified as Interconnection revenue, is now presented as Fixed Line and Cellular revenue. The 2009 presentation has beenreclassified to conform to the current treatment.
"We are pleased that we were able to increase total revenues in the first half of 2010 in spite of a challenging economic environment, especially on fixed line which we are defending," said TELKOM's President Director, Rinaldi Firmansyah. "Our EBITDA was up 2.9% compared to last year's result, while as a result of the appreciation of the Rupiah against other currencies, net income decreased slightly. We also made significant progress in attracting additional customers through an aggressive marketing campaign and the continued buildout of Indonesia's most reliable cellular network. We remain optimistic about meeting our full-year 2010 target as we work to drive revenues and increase operating margins in the second half ."
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