Media Nusantara Citra

Stock Quote Media Nusantara Citra - MNCN:

Business Summary

Media Nusantara Citra (MNC) focuses on developing and expanding the content business and Free-to-Air television (FTA TV). As Indonesia is an archipelago consisting of over 17 thousand islands, TV is an effective and efficient media platform to promote products and services on a national scale.

As of end-2013, MNC’s three FTA TVs in aggregate had 40 percent prime time audience share:

• RCTI is the number one TV station with a 21.5 percent average audience share
• MNCTV has a 12.2 percent prime time audience share
• GlobalTV has a 6.4 percent prime time audience share

At end-2013, the company has 18 Pay-TV channels that are divided in specific genres: MNC Infotainment, MNC Entertainment, MNC Music, MNC Movie, MNC Lifestyle, MNC News, MNC Fashion, MNC International, MNC Business, MNC Muslim, MNC Sports 1 (local sports), MNC Sports 2 (international sports), MNC Drama, MNC Comedy, Life and Golf Channel. MNC will launch six new channels in 2013 consisting of MNC Food & Travel, MNC Kids, MNC Homes & Living, MNC Wedding, MNC Teens, and MNC Health.

MNC generates revenues from the channel's subscription fees and TV advertisement. Most is generated from the three big national television channels RCTI, MNCTV, and GlobalTV. Advertising revenue is a growing source of revenue and will expand further in line with higher penetration rates on Pay-TV in Indonesia, which currently stands at 6.6 percent. Media Partners Asia expects the penetration rate at 18.8 percent by 2020.

Media Partners Asia projects a 15 percent CAGR (2012-2017) growth on net advertising spending (adspend) for Indonesia, the highest in the region. The high growth in adspend is due to Indonesia’s strong economic growth that is mostly fueled by robust consumption. In addition, the projected high adspend growth is brought on by the current relatively low adspend in Indonesia as well as the low rate card (advertising rate for a 30 second slot on TV) compared to other countries in the region. The highest TV rate card in Indonesia for a regular program was USD $5,000 at end 2012. While the highest rate card for a regular program in Thailand was USD $10,000 and USD $12,000 in Philippines.

Lastly, the penetration rate of Pay-TV is still relatively low in Indonesia at 9 percent. The Pay-TV penetration rate is expected to increase to 17 percent by 2020.

Media Nusantara Citra's Financial Highlights:

	2015	2016	2017
Revenues	6,444.9	6,730.3	7,052.7
Gross Profit	3,584.3	3,855.5	4,382.2
Net Income	1,185.7	1,368.7	1,453.3
Income from Operations	2,194.2	2,331.9	2,665.8
Total Assets	14,147.6	14,239.9	15,057.3
Total Liabilities	4,908.2	4,752.7	5,256.2
Earnings per Share¹	84	99	109
Cash Dividend per Share¹

 

	2010	2011	2012	2013	2014
Revenues	4,855.9	5,390.5	6,265.3	6,522.3	6,666.0
Gross Profit	2,236.6	2,773.3	3,408.6	3,671.7	3,853.6
Net Income	730.2	1,070.2	1,657.1	1,691.2	1,760.8
Income from Operations	1,189.1	1,581.6	2,214.8	2,560.3	2,602.0
Total Assets	8,196.5	8,798.2	8,960.9	9,615.3	13,610.1
Total Liabilities	2,760.4	1,963.7	1,663.8	1,871.7	4,209.8
Earnings per Share¹	54	80	119	121	126
Cash Dividend per Share¹		35	55	60

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Media Nusantara Citra, Annual Report 2017}

Projection Media Nusantara Citra's Future Corporate Earnings:

	2018	2019F	2020F	2021F
Net Revenue	7,444.0	8,004.0	8,618.0	9,180.0
EBITDA	2,740.0	3,145.0	3,512.0	3,840.0
Net Profit	1,531.0	2,091.0	2,303.0	2,577.0
P/E Ratio (x)	14.8	10.9	9.9	8.8
P/BV (x)	2.3	2.0	1.7	1.6

^{in billion IDR, unless otherwise stated
Source: Danareksa Sekuritas (11.02.2020)}