Abdi Bangsa to expand business despite bigger losses

Abdi Bangsa to expand business despite bigger losses

The Jakarta Post
Jakarta

Publicly listed media firm PT Abdi Bangsa Tbk plans to acquire
two other media companies despite the doubling of its losses this
year.

After the company's annual shareholders meeting, President
Director Erick Thohir told reporters on Wednesday that his
company would acquire up to 60 percent of PT Emas Indonesia
Duaribu, the publisher of Chinese-language newspaper Harian
Indonesia.

"As of now, both companies have agreed on the acquisition of a
26 percent stake for the first stage. There is a possibility that
we will acquire up to 60 percent," said Erick, adding that the
shares to be acquired would be those owned by shareholders other
than the founders and employees.

He said the acquisition, which might cost up to Rp 6 billion
(US$621,760), would be completed within the next one or two
weeks.

He further said that Abdi Bangsa would also acquire a stake
in, or merge with, PT Radionet Cipta Karya -- which controls
several FM radio stations in Jakarta, Bandung and Manado,
including Prambors, Delta, Female, Bahana and Rase.

"We won't decide whether we will merge with or acquire the
company for another two months," Erick said, without elaborating.

Based on an acquisition, Abdi Bangsa says it expects its
sales revenues would more than double from last year's Rp 67.07
billion, he added.

The company's annual report shows that it suffered a net loss
of Rp 16.36 billion last year, more than double the Rp 7.37
billion loss sustained in 2003. In 2002, the company reported a
net loss of Rp 4.39 billion.

The report says that the increase in losses was due to
extraordinary items, including a provision for doubtful
receivables worth Rp 8.43 billion and discrepancies between asset
valuations and real market value amounting to Rp 5.62 billion.

Erick said that despite the increase in losses, the company
earned Rp 17.64 billion in revenues last year, a 35.68 percent
increase over the previous year.

He said that for the future, Abdi Bangsa was determined to
continue expanding its business.

The company booked an operating profit of Rp 2.57 billion last
year as compared to an operating loss of Rp 10.26 billion in
2003.

Abdi Bangsa has a number of subsidiaries, including PT Suara
Irama Indah (Radio One 101 FM Jakarta), production house PT
Mahaka Visual Indonesia, PT Republika Media Mandiri (Republika
daily), PT Media Golfindo (Golf Digest magazine), publishing
company PT Pustaka Abdi Bangsa and advertising company PT
Avabanindo Perkasa.

Earlier this year, Abdi Bangsa launched lifestyle and
entertainment TV station JakTV. (001)