Viva Pins Its Hopes on World Cup Surge
Buoyed by gaining exclusive rights to broadcast the 2014 World Cup of football in Indonesia, the media arm of the Bakrie Group is confident revenue this year can grow by 30 percent to 35 percent.
Last year, revenue hit Rp 993 billion ($11 million), meaning Visi Media Asia’s growth goal would deliver revenue this year at Rp 1.29 trillion to Rp 1.34 trillion.
The company known as Viva says it expects advertisers will increase their spending with Viva this year, even though the Brazil football carnival is still two years away.
“Without the exclusive rights to air the World Cup, we predicted revenue growth of 25 to 26 percent [this year],” Erick Thohir, the president director of Viva, told Investor Daily last week.
Erick added that sponsors of the World Cup were expected to start advertising long before the four-yearly event begins.
In 2014, Erick said revenue was expected to increase further, though he did not provide a specific prediction. He said additional revenue from the exclusive rights to air the World Cup would amount to between Rp 900 billion and Rp 1 trillion.
“The optimum effect will be felt in 2014,” he said.
Viva spent $61.54 million to secure the exclusive rights to air the World Cup.
The rights were secured after Inter Sports Marketing, the broadcast license holder for the World Cup in Indonesia, signed a licensing deal with three subsidiaries of Viva: Cakrawala Andalas Televisi (ANTV), Lativi Mediakarya (tvOne) and Digital Media Asia. The Bakrie Group owns Viva, which is the holding company for television broadcasters ANTV, tvOne and the online news portal Vivanews.
In the first six months of this year, Viva booked a 4 percent increase in net income to Rp 17.3 billion. Revenue rose 17.6 percent to Rp 546 billion.
Viva stock fell 16 percent to Rp 495 on Monday, continuing a trend of declines hitting Bakrie Group companies.