Despite Earning Rp5.65 Trillion In Profit, Company Owned By Conglomerate Eddy Kusnadi Sariaatmadja Not Distributing Dividends This Year

Conglomerate Eddy Kusnadi Sariaatmadja. (Photo: Doc. Forbes)

JAKARTA - The Annual General Meeting of Shareholders (AGM) of a company owned by conglomerate Eddy Kusnadi Sariaatmadja, namely PT Elang Mahkota Teknologi Tbk (EMTK) or Emtek has decided not to distribute dividends from its 2021 net profit.

Deputy President Director of Emtek Sutanto Hartono said the AGMS agreed not to distribute dividends because the company's net profit in 2021 will be used as capital expenditure (capex) and business development.

"There is no dividend distribution. We will use the net profit as capital expenditure and business development," said Sutanto in a public presentation by Elang Mahkota Teknologi, in Jakarta, Wednesday, June 29.

Furthermore, Sutanto explained, this year EMTK has budgeted a capital expenditure of 50-60 percent larger than last year's capex realization of Rp450 billion. Most of this Capex will be allocated to the company's media business and health services.

The company's media business, said Sutanto, will absorb the largest capital expenditure this year, due to the obligation to migrate from analog television broadcasting to digital.

"We are indeed obliged by the state to migrate broadcasts from analog to digital, so we build infrastructure," he said.

In addition, he continued, the company's hospital business also requires capital expenditures to purchase medical equipment. For information, throughout 2021, EMTK recorded revenues of IDR 12.84 trillion.

This income rose 7.57 percent from Rp11.93 trillion in 2020. The profit for the year attributable to owners of the parent company also recorded an increase of 174.9 percent to Rp5.65 trillion, from Rp2.05 trillion on an annual basis.