P.T. Telekomunikasi Indonesia Tbk. (TLK), the largest telecom operator of Indonesia, declared solid financial results for the first half of fiscal 2010. Total revenue for the first half of 2010 was a little over $3,777.5 million compared with $3,004.9 million in the prior-year period. This was mainly due to fabulous increase in both Cellular and Fixed-line telephony revenue together with an increase in Data, Internet & Information technology services revenue.

Net income, in the first half of 2010 was $662.2 million or $1.20 per ADS (American Depository Shares) compared with a net income of $592.1 million or $1.20 per ADS in the year-ago period.

Total operating expenses in the first half of 2010 was $2,524.4 million, up nearly 35% year over year. Operating income, in the same period was $1,253.1 million, up 10.5% year over year. Operating margin in the reported period was 33.2% compared with 37.7% in the prior-year period.

Telekomunikasi generated $1,450 million cash from operations during the first half of 2010 compared with $1,316.1 million in the year-ago period. Free cash flow (cash flow from operation less capital expenditure), during the reported period was $547.6 million compared with $224.6 million in the year-ago period.

At the end of the first half of 2010, Telekomunikasi had $975.9 million of cash & marketable securities on its balance sheet compared with $854.6 million at the end of the prior-year period. Total debt was $1,318.9 million at the end of the same period compared with $1,078.7 million at the end of the prior-year period. At the end of the first half of 2010, debt-to-capitalization ratio was 0.23 compared with 0.24 at the end of the year-ago period.

Segment Performance

Fixed Lines revenue in the first half of 2010 was $737.4 million, up 76.5% year over year. Cellular revenue was $1,588.4 million, up 19.9% year over year. Interconnection revenue was $168 million, down 55.5% year over year. Data, Internet, & Information Technology Services revenue was $1,127.7 million, up 45.1% year over year. Network revenue was $61.2 million, up 2.1% year over year. Other Telecommunication Services revenue was $94.7 million, up 98.9% year over year.

 
TELEKOMUNIK-ADR (TLK): Free Stock Analysis Report
 
Zacks Investment Research