Abdi Bangsa to expand business despite 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)