Dyandra Sees Expansion, Assets Sale to Return to Profit in 2017
Jakarta. Dyandra Media International, the listed event organizer arm of Kompas Gramedia Group, Indonesia's largest media conglomerate, has laid out plans to swing to profit next year on the back of overseas expansions, new line of business as well as selling land and hotel assets to reduce debt burden.
The company expects to return a profit of Rp 26.5 billion in 2017, from an estimated Rp 52.7 billion loss this year, Dyandra said in a statement to the Indonesia Stock exchange on Friday (09/12). The event organizer, who own the country's largest exhibition venue International Convention Exhibition in Banten, expects its revenue to increase to Rp 1.15 trillion, up 19 percent from Rp 940 billion this year.
Operating costs would also rise 7.9 percent to Rp 257 billion from Rp 236 billion, Daswar Marpaung, a director at Dyndra, said in the statement.
The company would implement organizational restructuring, efficiency and cost control across the company's exhibition and EO division, as well as selling assets that are deemed unusable or have no value, Daswar said.
Dyandra's events supporting division, will expand its market by involvement in exhibitions overseas and looking for new clients or events in different industries, Daswar said.
While the company's hotel business arm would focus on improving its best performing hotels and selling land or under performing hotels, he said. Dyandra plans to use the sale proceeds to reduce debt.
The company owns and operates hotels across Indonesia under Santika Hotels brand.
Lastly, Dyandra's venue and space renting division would expand to China, Russia and other countries, increasing revenue by launching a catering business, as well as exploring opportunities to become a venue operator.
Dyandra's shares is traded at Rp 61 a piece, or around 10 times of its estimated 2017 earnings, at 10:17 a.m. on Friday in Indonesia Stock Exchange.
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