Company Update

28 April 2023

MNCN IJ - MNC Sekuritas Equity Report April 28, 2023

Attractive Valuation Underlines Potential

Key Takeaways
• MNCN recorded a FY22 revenue of IDR9.1 tn (-9.5% YoY) with the driver being the implementation of ASO. Yet, market share of RCTI+ grew to 13% (vs 11% in FY21), thus reflecting on the digital revenue growth to IDR2.5 tn (+25.3% YoY)
• EBITDA was booked at IDR3.7 tn (-11.2% YoY), resulting in a margin of 41.1% (vs 41.9% YoY).
• Net profit was booked at IDR 2.2 tn (-14.7% YoY), translating to a net margin of 24.8% (vs 26.3% in FY21).
• MNCN's efficiency initiatives have uplifted its profitability, with the company reducing its direct costs by efficient management of two studio facilities, partial initiation of content production in Movieland, and reduced reliance on third-party licensing deals with foreign content studios.
• RCTI+ MAU grew to 67.6 mn in Feb-2023, up by 700,000 from the previous month, and the company plans to increase the average time spent on the platform, resulting in an increase in RCTI+ ad revenue.
• With the successful production of its first sinetron in Dec-2022 at Movieland, MNCN achieved a significant milestone and aims to be the largest film and drama series center in Southeast Asia, complete with international standard facilities and equipment, which is expected to increase the efficiency of Indonesian film production and result in higher GPM and better production control.
• MNCN is affiliated with the company, so we do not offer any recommendation related to company prospects. Recommendation: NOT RATED.


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