NET TV Still Loses IDR 120.34 Billion In Semester I 2021, But Promises To Divide 25 Percent Dividend After IPO In 2022 Which Will Raise IDR 149.99 Billion

Illustration. (Photo: Doc. Antara)

JAKARTA - Indika Group's parent television media company, NET TV or PT Net Visi Media, will "float" on the Indonesia Stock Exchange (IDX) by conducting an initial public offering (IPO) in early 2022.

After the IPO later, NET TV is committed to providing cash dividends to shareholders of a maximum of 25 percent of net profit. This was quoted from the company's prospectus, Tuesday, December 28.

NET TV will offer a maximum of 765.30 million shares. This amount represents 4.37 percent of the issued and fully paid capital after the IPO.

The nominal value of the shares is set at Rp100 with an offering price of Rp190 - Rp196 per share. Thus, NET TV. potential to reap fresh funds of as much as Rp. 149.99 billion in this corporate action.

"After this Initial Public Offering, the Company is committed to paying cash dividends to the company's shareholders at a maximum of 25 percent of the company's net profit," NET TV management wrote in the prospectus.

Meanwhile, the dividend distribution will take into account the company's profit and soundness level for the financial year concerned. The amount of dividends will also depend on the results of business activities and cash flow as well as business prospects, working capital needs, capital expenditures, and investment plans in the future.

Based on the financial statements ending on July 31, 2021, the parent company of PT Net Mediatama Televisi or NET TV. This recorded revenue of Rp.282.93 billion. The realization rose 34.74 percent compared to the same period last year of Rp. 209.98 billion.

Gross profit recorded an increase of 73.25 percent on an annual basis to Rp95.76 billion from the previous Rp55.27 billion. However, the company still suffered losses even though it had decreased by Rp120.34 billion from the previous loss position of Rp411.17 billion.

Meanwhile, the company's gross profit margin improved to 33.85 percent at the end of July 2021 compared to the same period last year of 30.34 percent. Meanwhile, the net loss margin narrowed to -42.79 percent from -137.98 percent previously.

The net profit to equity ratio (ROE) was recorded at -510 percent at the end of July 2021 while the net profit to assets ratio (ROA) was -7.05 percent. The company's total assets fell 6.30 percent from the beginning of the year until July 31, 2021, to Rp1.11 trillion from the previous Rp1.18 trillion.

Total equity decreased 54.01 percent year-to-date (ytd) to Rp23.74 billion while total liabilities decreased 4.06 percent to Rp1.69 trillion.

"There are no negative covenants that can prevent the company from distributing dividends to shareholders, as long as the dividend distribution does not exceed 25 percent of the company's net profit (in line with the Company's dividend policy) and there is no violation of financial covenants," wrote Net Visi Media's management.