JAKARTA - PT Northcliff Citranusa Indonesia Tbk (SKYB) continued to record negative performance in the first quarter of 2019. In the period, the company’s net loss skyrocketed 214% year on year (yoy) to Rp 463.10 million.
SKYB President Director Wahyu Mulyana said that the loss was caused by low demand and tight competition in the phone credit and accessories industry as well as market saturation.
“Primarily the cause was market saturation, and as we know the number of mobile phone users have now exceeded the total population. There was also tight competition between data service operators,” said Mr Mulyana in a public expose at Equity Tower, South Jakarta on Thursday (23/5).
SKYB Director Sigit Kamseno added that because the company’s existing business is deemed unprofitable, the company is trying to explore new businesses. Recently SKYB acquired shares in two property operators to boost revenue amid the lackluster performance of its existing business.
“Admittedly our existing business is not profitable, and thus the we need to move quickly to undertake strategic measures… We are also planning to shift our business to other, more profitable fields,” said Mr Kamseno. (MS)