TEMPO.CO, Jakarta - Analyst predicted that PT Visi Media Asia Tbk (IDX: VIVA), Bakrie Group's subsidiary in the field of media and broadcasting, has the potential to be sold due to its recent stock price decline. VIVA, in charge of TV stations ANTV and TVOne, is also estimated to have incurred substantial losses due to placing free advertisement for one presidential candidate.

As it turned out, advertising revenues from the 2014 World Cup did not compensate for what TVOne had to pay for broadcasting rights.

"VIVA had to pay Rp600 billion for the World Cup broadcasting rights, but the ad revenue was only around Rp100 billion," Investa Saran Mandiri analyst Kiswoyo Adi Joe told Tempo last week.

Kiswoyo said VIVA has Rp2.6 trillion in debt, with a debt-to-equity ratio (DER) of 1.5 times (150 percent). "It's a tough situation, the best solution is to sell the company; possibly to Hary Tanoesoedibjo or Chairul Tanjung," he said.

VIVA's share price has continued to decline in the past few weeks. On the last trade closing before the Eid holiday, VIVA was only traded for Rp266 per share, down from early July's price of Rp285 per share.

Trust Securities chief researcher Reza Priyambada said the stock price decline was caused by TVOne, ANTV, and Viva.co.id's supposedly impartial reporting about presidential and vice presidential candidates Prabowo Subianto-Hatta Rajasa.

However, Reza rebutted assumptions of VIVA's likely sale. According to Reza, VIVA's performance is still better compared to other media companies such as PT Media Nusantara Citra Tbk (IDX: MNCN). MNCN's stock price also dropped following the quick count reporting of July 9 presidential elections. But MNCN's price rebounded not long after.

"Investors scrutinize TVOne more than MNCN," he said.

VIVA had targeted to book Rp1 trillion in ad revenue from airing the 2014 World Cup in Brazil. The company allotted US$10 million of its working capital to support the 2014 World Cup.

DEWI SUCI RAHAYU