ASEAN KEY DESTINATIONS
Dyandra target still on track despite economic turmoil
Publicly listed event organizer PT Dyandra Media International (DYAN) is sticking to its revenue target of Rp 1 trillion (US$87.37 million) and pre-tax earnings of Rp 90 billion by year-end, despite the economic slowdown.
“Our plans are not being influenced by the crisis because they were prepared a year ago,” said Dyandra’s operational director, Danny Budiharto, on Monday in a public expos? held in Jakarta.
Dyandra, which is organizing the current 2013 Indonesia International Motor Show (IIMS), showed its confidence as it had already achieved more than half its target.
Up to the third quarter of this year, the company recorded Rp 638 billion in revenue, a surge of 54 percent compared to the same period last year, driven by its event organizing business that contributed around 80 percent, according to Danny. Dyandra also posted Rp 62 billion in pre-tax earnings, up 15 percent from the same period in 2012.
“We are handling more events this year,” Danny said. Dyandra was organizing 735 events this year, while in 2012 it organized 702 events, he added.
The company’s achievement so far is higher than it predicted. “When we went public, we predicted 35 percent [revenue] growth. So, it’s already higher than our expectation,” said Budi Yanto Lusli, Dyandra’s finance director.
Dyandra expects the firm’s growth to be sustained until the end of the year, as the company will be hosting two major events, namely the 2013 Asia-Pacific Economic Cooperation (APEC) Summit in October and the World Trade Organization (WTO) Ministerial Conference in December.
“The year’s second half usually contributes [more revenue] to our business,” Budi said.
Dyandra’s operating profits also jumped 85 percent year-on-year to Rp 70.06 billion, while its gross profits increased 46 percent to Rp 235 billion. The increases were driven by the event organizing business, comprising increased ticket prices and a larger exhibition area for events.
For example, the 2013 IIMS was using 100,000 square meters, up from 70,000 square meters last year, according to Budi.
Dyandra, listed last March on the Indonesia Stock Exchange (IDX), runs businesses in providing facilities and services for meetings, incentives, conventions and exhibitions (MICE), and in property, including convention centers and hotels.
It owns a convention center in Surabaya, East Java, and has just completed the Bali Nusa Dua Convention Center (BNDCC), a 50,000-square-meter building that will house both the APEC Summit and the WTO conference this year. The convention center is being hailed as the largest convention center in the country.
“But that will only be until we finish our convention center in Bumi Serpong Damai in Tangerang,” Danny said, referring to the Indonesia International Exhibition and Convention Center with a total area of 240,000 square meters. That was “six times bigger than [the JIExpo in] Kemayoran,” Danny added.
The convention center was due to open next July, with 40 percent of the building completed, according to Danny.
However, the Tangerang center, which requires total investment of Rp 2.1 trillion, would not make a sizable contribution to Dyandra, as the company held only 5 percent of the total shares in the building, according to Budi. Dyandra’s parent company, Kompas Gramedia Group, and property company Sinar Mas Land own the remaining shares. (nai)
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