Bali United Owned By Pieter Tanuri Conglomerate Earns IDR 72 Billion Profit, But Not From Football

JAKARTA - PT Bali Bintang Sejahtera Tbk or Bali United recorded a profit in the first semester of 2021, although the revenue of the football club manager was corrected in the first semester of 2021.

In the financial report of the issuer codenamed BOLA, quoted on Monday, August 30, the revenue of the company owned by the conglomerate Pieter Tanuri reached Rp. 35.43 billion in the first semester of 2021. This revenue decreased by 22.70 percent from the position of Rp. 45.84 billion.

The decline in revenue was due to Bali United's business roots in terms of football being affected by the pandemic. The commercial club management segment which last year scored Rp36.94 billion, in the first semester of 2021 it only recorded Rp7.30 billion.

Luckily, the new segment, namely video streaming, was able to patch up BOLA's revenue of up to Rp. 17.22 billion. The income from related parties contributed Rp1.8 billion of the total income of BOLA.

Despite the corrected revenue, BOLA still recorded a net profit of Rp72.09 billion. This number even exceeds the total revenue for the first semester of 2021.

Bali United's financial performance was boosted by the financial income post which jumped by 567.41 percent, from Rp. 16.71 billion in the first semester of 2020 to Rp. 111.51 billion in the first semester of 2021.

Then short-term investments which were listed as current assets did experience a growth of 45.71 percent (year on year/yoy) to Rp255.56 billion. BOLA's management stated that the increase in short-term investment was due to additional investments in stocks and mutual funds.

Bali United has an investment in the Shelf-Registered Bonds I Sinar Mas Multifinance Phase III 2019. The tenor is three years with a fixed interest rate of 11 percent.

As of June 30, 2021, the fair value of the investment is IDR 50 billion. In 2021, BOLA recognized bond interest income of Rp4,675 billion in financial income.

Next, BOLA also placed funds in the SMART Phase I Year 2020 Shelf-Registered Bonds of IDR 10 billion. The tenor is three years with a fixed interest rate of 8.5 percent.

As of the first semester of 2021, the fair value of the investment is Rp 10 billion. In 2021, BOLA recognized bond interest income of Rp361,250,000 in finance income.

BOLA also has a Securities Portfolio Management Contract for the Interest of Individual Customers with PT Nusadana Investama Indonesia. The asset allocation limits are equity securities, debt securities, KIK and money market instruments, namely deposits, deposits on call, cash and SBI.

As of June 30, 2021, the fair value of the investment was Rp110.51 billion, up from the position on December 31, 2020, which was around Rp.62.84 billion.

In 2021, BOLA will also place investment funds in Buana Capital Sekuritas, Waterfront Sekuritas, Trimegah Sekuritas, PT OCBC Sekuritas Indonesia (OCBC), PT NH Korindo Sekuritas Indonesia and PT Lotus Andalan Sekuritas. The goal is to obtain capital gains through trading equity instruments on the Indonesia Stock Exchange (IDX).

As a result, until June 30, 2021, BOLA recognized realized gains from changes in fair value of Rp56,261,320,500 in the other gains and losses account.