JAKARTA: PT Metro Realty Tbk, a retail company, said that they are significantly challenged with competition by other major developers in the property and real estate industry.Based on the Information Disclosure submitted at the website of Indonesia Stock Exchange (BEI) today, the management of MTSM-coded stock company reveals risk to its business development.In property management business, for example, the company must compete with a number of malls and new buildings constructed in adequate concepts and facilities compared to the building owned by the company. As in the real estate business, the company must compete with a number of major developers who own vast land at strategic places."The rest of the land for the ongoing projects is not possible to provide such facilities similar to the ones offered by other developers. The building facilities shall be increased while the number of tenants do not increase following the [building] growth," it said.Therefore to improve the performance of the company, it embarks on a number of efforts, inlcuding by renovating the existing buildings to provide better services and comfort to visitors and tenants also boosting the advertising and marketing by distributing flyers to activate the existing land.In addition, the company also continues streamlining its operating expenses, improving internal lines in order to create better working relationship between the management and employees also improving the company's both external and internal deficiencies.Based on the company's financial report in third quarter of 2010, Metro Reality has booked a jump of net income up to 461.33% to IDR1.93 billion from IDR212.06 million last year.However, the company's revenue fell 12.51% to IDR16.85 billion from IDR19.26 billion yet its operating expenses decreased 22.98% to IDR12.13 billion from IDR15.75 billion. This made the company's gross profit rose 34.09% to IDR4.72 billion from IDR3.52 billion.The unaudited financial report also mentioned that the operating expenses slightly increased 7.72% to IDR2.79 billion from IDR2.59 billion. Meanwhile, other incomes soared 1,060% to IDR641.25 billion from IDR55.28 billion.The jump was supported by the increase in company's current account interests as much as 1,560.29% to IDR1.08 billion from IDR65.35 million. Other incomes widened to IDR29.72 million in third quarter of 2010. The loss on disposal of fixed assets during the third quarter in 2009 as much as IDR1.08 million no longer occurred in third quarter of 2010.MTSM is a company engaged in supermarket, rental services, building management, and real estate investment and development. It was previously named as PT Melawai Indah Plaza before it changed into PT Metro Supermarket Reality Tbk. Yet, the last change in 2009 introduced it as PT Metro Reality Page. (T06/NOM)
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