JAKARTA. Media company PT Visi Media Asia (VIVA) suffered financial losses of more than Rp 245 billion in the first half of this year as ballooning foreign exchange (forex) losses and higher operating costs ate up the company’s stagnating revenue.
According to the company’s announcement filed with the Indonesia Stock Exchange (IDX), the company suffered a total loss of Rp 245.50 billion (US$167.46 million) as of June 30 this year, in stark contrast with the Rp 81.72 billion net profit it posted in the same period last year.
Its revenue stagnated for the period at around Rp 1.1 trillion, which was a slight 3.7 percent increase from the Rp 1.05 trillion posted in the corresponding period last year. The sharp depreciation of the rupiah against the US dollar drove Viva’s forex losses down by Rp 112 billion, in contrast with last year’s gain of Rp 4.82 billion.
Operational expenses rose by 4.9 percent from Rp 754.6 billion in the first half of 2014 to Rp 791.4 billion in the first half of 2015.
The reason for VIVA’s relative stagnancy in 2015 was because of the lack of large media events and occasions that took place this year, compared to 2014, said Asjaya Indosurya Securities analyst William Suryawijaya.
Market and currency conditions, he added, were also a contributing factor toward the media group posting a loss in 2015’s first semester.
“This year saw the rupiah fall to its lowest point in 17 years; last year that didn’t happen. Viva had a good year in 2014 with the World Cup and the political campaigning that went on, resulting in its profit,” William told The Jakarta Post on Wednesday.
He added that the rupiah’s record low also contributed to the company’s stagnating revenue, which was squeezed by the dollar debt that accounted for 0.98 percent of its total liability in the first half.
“Its forex losses could also be driven by the amount of royalties it had to pay for its respective shows. Last year, the exchange rate was different so the losses would not be as impactful as they are today,” he said.
Nonetheless, William predicted that Viva would be able to weather the storm, particularly if it continued trying to attract advertising sales.
Separately, Viva president director Anindya Bakrie elaborated that the slight increase in revenue this half was driven mostly by its subsidiary PT Intermedia Capital (MDIA), which operates the ANTV television station.
She explained that ANTV’s revenue increased by 27.1 percent in the first half of the year, which was 1.9 percent higher than the average industry growth rate.
“ANTV’s performance managed to outperform the market standard,” she said as quoted by kontan.co.id. She added that the station’s performance had been well-received during the current economic climate.
MDIA fared better than its parent company because it managed to post a profit, albeit declining from last year. The net profit declined by -13.2 percent from Rp 160.69 billion in 2014’s first half to Rp 139.43 billion in 2015’s first half.
VIVA currently owns two television stations — ANTV and TVOne — as well as online portal Vivanews. (Dylan Amirio)
Editor: Yudho Winarto
Editor: Yudho Winarto