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P.T. Telekomunikasi Indonesia Tbk. (TLK), the largest telecom operator of Indonesia, declared mixed financial results for the full year 2009. Net income in fiscal 2009 was $1,202.4 million or $2.40 per ADS (American Depository Shares) compared to a net income of $974.3 million or $2 per ADS in 2008. However, fiscal 2009 EPADS of $2.40 was below the Zacks Consensus Estimate of $2.47. This was primarily due to higher depreciation charges as well as soaring operations & maintenance costs.

Total revenue in fiscal 2009 was $6,853.8 million, compared to $5,567.9 million in 2008. This was also above the Zacks Consensus Estimate of $6,540 million. This was mainly due to fabulous increase in Cellular revenue together with increase in Data, Internet & Information technology services revenue.

Total operating expenses in fiscal 2009 was $4,455.5 million, up 26.5% year over year. This huge increase in operating expenditure primarily arises from 31.3% increase in Depreciation charges and 38% increase in Operations, maintenance, and telecommunication services costs. As a result, operating margin in 2009 was 35% compared to 36.8% in 2008.

Telekomunikasi generated $3,152.9 million cash from operations during fiscal 2009 compared to $2,230.9 million in fiscal 2008. Yearly free cash flow (cash flow from operation less capital expenditure) was $978 million in 2009 compared to $775.5 million in 2008. At the end of fiscal 2009, Telekomunikasi had $882.4 million of cash & marketable securities on its balance sheet compared to $672.1 million at the end of fiscal 2008. Total debt was $1,516.6 million at the end of fiscal 2009 compared to $1,188 million at the end of fiscal 2008.

Segment-wise Revenue

Fixed Lines revenue in fiscal 2009 was $917.2 million, up 2.7% year over year. Cellular revenue was $2,886.1 million, up 24.2% year over year. Interconnection revenue was $808.7 million, up 0.3% year over year. Data, Internet, & Information Technology Services revenue was $1963.5 million, up 45.5% year over year. Network revenue was $129.2 million, up 30.5% year over year. Other Telecommunication Services revenue was $149 million, up 55.4% year over year.

Source: Mixed Results for Telekomunikasi