Want To Be Debt-Free In 2023, Bakrie's Media Group Sells ANTV's Shares Of IDR 3.9 Billion

Left to right: VIVA Group Head of Digital Jimmy Samebeau, ANTV President Director Ahmad Zulfikar, VIVA Director Arief Yahya, Jastiro Abi (VIVA Director), MDIA Director Arhya Winastu Satyagraha. (Photo: Maria Trisnawati/VOI)

JAKARTA - Bakrie's group media company, PT Visi Media Asia Tbk (VIVA) revealed that it will not take further corporate action and will focus on repaying the company's debt.

"Meanwhile, in the past (debt repayment). That alone, the corporate action is quite large, we are paying off our debts," said VIVA Finance Director Jastiro Abi after attending a Public Expose in Jakarta, Wednesday, December 14.

To pay off the debt, he continued, VIVA will conduct a private placement of shares of PT Intermedia Capital Tbk. (MDIA) amounted to 10 percent or 3.9 billion shares for debt payments so that the debt-free target in 2023 was achieved.

"This year we focus on repaying the debt of its subsidiary, starting from ANTV MDIA, there is a debt of 112-113 million dollars or around Rp. 1.6 trillion and now there is Rp. 960 billion left," Abi added.

Just so you know, this RP960 billion debt is the debt of a subsidiary of PT Cakrawala Andalas (CAT) which is the manager of ANTV.

With this debt repayment, Abi continued, VIVA will be free from debt and interest payments.

The private placement will target investors.

With the sale of these shares, said Abi, it is hoped that the company's performance will improve the company's performance and profit.

After paying off the debt of the subsidiary, VIVA will continue to pay off the holding debt. According to the plan, Abi continued, VIVA will sell 39 percent of its holdings in MDIA after completing debt payments.

"As in the initial plan, we will hold holding debt like typical holding companies. How to pay off their debts by selling shares," he continued.

For information, VIVA managed to reap revenue of IDR 1.3 trillion year to date September 2022.

VIVA Managing Director Arief Yahya said efficiency at the operational level resulted in an increase in EBITDA by 46 percent yoy to Rp149.6 billion compared to Rp102.2 billion in the same period last year.

The increase in financial performance was supported by the performance of the subsidiary, PT Intermedia Capital Tbk (MDIA), which posted an increase in revenue of Rp992.5 billion year to date September 2022 compared to Rp986.4 for the same period in 2021.

This achievement was marked by a positive record of increasing MDIA's net profit by 122.8 percent yoy.

Despite earning a profit of IDR 1.3 trillion, VIVA was recorded to have suffered a loss of IDR 1,095.2 billion or an increase of 67.1 percent from the previous year which was only IDR 655.4 billion.

This loss was contributed by program and broadcast expenses of IDR 515.8 billion, general and administrative expenses of IDR 663.1 billion and a shrinkage burden of IDR 72.2 billion.