Indonesia's largest carrier posts drop in earnings

PT Telekomunikasi Indonesia, Indonesia's largest telecommunication firm, reported a 6.2% drop in third-quarter net profit, hit by lower revenue at its mobile phone business and foreign exchange losses, a Reuters report said.

The Reuters report said Telkom's net profit fell to 3.19 trillion Indonesian rupiah ($350 million) in the quarter from 3.4 trillion rupiah ($373 million) a year ago.

Analysts had expected Telkom, the biggest company on the Jakarta stock exchange, to book a 22% net profit rise to 4.16 trillion rupiah ($457million) and revenue of 16.96 trillion rupiah ($1.8 billion) in the third quarter, according to Reuters.

Shares in Telkom , which has a market capitalisation of about $26 billion, ended more than 4% lower after the results, the report said.

Total revenue rose 17.4% to 15.5 trillion rupiah $). While revenue at its mobile phone unit fell 2.5% to 5.3 trillion rupiah, revenue at its data and internet services rose more than 70% to 3.88 trillion rupiah.

For 2007, Telkom is expected to post net profit growth of around 26% to 13.9 trillion rupiah ($1.5 billion).