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Polaris flags loss for FY ending Dec 31
POLARIS has warned that it expects to record a net loss for the financial year ending Dec 31 due to its Indonesia-based associate company PT Trikomsel Oke Tbk.
Polaris has a 44.88 per cent stake in Trikomsel, which released its third-quarter results on Oct 30.
"The expected loss is purely attributable to the consolidated share of results of Trikomsel," it said in a release to the Singapore Exchange on Monday morning. "In the near term, the ongoing market challenges in Indonesia, including the depreciating of the Indonesian rupiah against the US dollar and the general slowdown in the Indonesian economy, are expected to persist."
It added that Trikomsel will continue to take various cost-reduction initiatives to improve its liquidity position and to sustain its operations in the long run by prioritising its cash flows and profitability. Trikomsel is being assisted by FTI Consulting on its debt-restructuring plan.
Polaris highlighted that business remains "favourable" across Asia - including Singapore - with the exception of Indonesia.
"The group also remains open to opportunities for growth and expansion and continues to be operationally resilient and focused on strengthening its regional retail and distribution footprint in the area of telecommunication, media and technology," it added.