MNC Media Earning Call Material 6M 2014

Listed and traded on the Indonesia Stock Exchange

STOCK CODE: BMTR
MNCN
MSKY

MNC Media
PT Global Mediacom Tbk.
PT Media Nusantara Citra Tbk.
PT MNC Sky Vision Tbk.

Earning Call 25th July 2014
6M 2014

Summary of Financial Performance
1H 2014 & 2013

(In billion Rupiah)

2Q 2014


2Q 2013

YoY Growth

6M 2014

6M 2013

YoY Growth

Advertising Revenues

1,733

1,634

6%

3,132


2,882

9%

Content
Others
Total Revenues

69
74
1,876

24
110
1,768

189%
-33%
6%


91
150
3,373

44
208
3,134

107%
-28%
8%

Operating Expenses

1,057

1,038

2%


2,030

1,928

5%

Income from Operations

819

730

12%

1,343

1,206

11%


Net Income
EPS
Core EBITDA

584
42
864

530
38
760

10%
11%
14%

973
70
1,429


953
68
1,283

2%
3%
11%

Core EBITDA margin

46%

43%

42%

41%

Forex Gain (Loss)


(8)

(20)

-59%

(1)

(17)

-93%

Gain on Investments

7

28

-76%


29

125

-77%
2

Summary of Financial Performance
1H 2014 & 2013

(In billion Rupiah)
Revenues
Operating Expenses
Income from Operation
Net Income (Loss)
EBITDA
EBITDA Margin

D&A
Interest Expense

Forex Gain (Loss)
Total
Total Subscribers (in 000)

2Q 2014

2Q 2013

YoY Growth

6M 2014

6M 2013

YoY
Growth

802

754


6%

1,577

1,450

9%

770
32
(149)
282
35%

631
123
(3)
306
41%


22%
-74%
-4867%
-8%

1,478
99
(14)
585
37%

1,204
246
31
600
41%

23%
-60%
-145%
-3%

250
(59)
(162)
29

183
(58)
(51)
74

YoY Diff
37%
-2%
-218%
-61%

486
(103)
(13)
371

354
(117)
(61)
176

YoY Diff
37%
12%
79%
111%

2,498

2,014

24%

3

Summary of Financial Performance
1H 2014 & 2013

(In billion Rupiah)

2Q 2014

2Q 2013

YoY Growth

6M 2014

6M 2013

YoY Growth

1,749

1,653

6%

3,131

2,882

9%

Subscribers Based Media

802

757

6%

1,577

1,450

9%

VAS and Others

293

230

27%

569

487

17%

Total Revenue

2,844

2,640

8%

5,277

4,819

10%

Operating Expenses

2,038

1,811

13%

3,911

3,431

14%

Income from Operation

806

828

-3%

1,366

1,388

-2%

Net Income

202

339

-40%

506

632

-20%

EPS

14

23

-39%

37

45

-18%

Core EBITDA

1,112

1,052

6%

1,959

1,838

7%

Core EBITDA Margin

39%

40%

37%

38%

Forex Gain (Loss)

(180)

(69)

160%

(18)

(83)

-79%

Gain on Investments

(36)

85

-143%

44

186

-76%

Advertising Revenues

• VAS revenue grew by 54% driven by Letang performance (with revenue from Mobile Games 2Q 2014 = USD 9.1
million which mainly contributed by top hits game “Bonnie Bears” or “Xiong Chu Mo”).
4

ADEX Nett Growth Q2 2014

Channel
RCTI
MNCTV
GTV
MNC Group
SCTV
IVM
EMTEK Group
Trans
Trans7
Transcorp
ANTV
TVOne
VIVA Group
Metro
TVRI1
Grand Total

ADEX Nett Estimation Q2 2014
Revenue (in IDR billion)
Advertising Market Share by Group
2013
2014
Growth
2013
2014
898
944
5.1%
21%
21%
467
467
0.0%
11%
10%
239
263
10.0%
6%
6%
1,604
1,674
4.4%
38%
37%
670
701
4.6%
16%
16%
301
445
47.9%
7%
10%
971
1,146
18.1%
23%
26%
500
514
2.9%
12%
11%
638
392
-38.5%
15%
9%
1,138
907
-20.3%
27%
20%
203
326
60.8%
5%
7%
200
287
43.1%
5%
6%
403
613
52.0%
9%
14%
128
141
10.1%
3%
3%
2
9
407.9%
0%
0%
4,245
4,489
5.7%
100%
100%

• Q2 advertising industry growth was soft at 5.7% as advertisers held off spending pre-election
• MNC Group has maintained its advertising market share
Source : AGB Nielsen Arianna / Annual Report IDX & Adex Nett Assumption Q2 2013-2014 (In Billion)

5

MNC's Audience Share Has Regained Number One
40

35

30

25
Audience Share

MNC GROUP
EMTEK
GROUP
TRANS
CORP
VIVA
GROUP

20

15

10

5

June 23

June 16

June 9

June 2

May 26

0

Week

• Audience share of MNC has gained momentum since June 16th 2014 and became number one during
prime time by the end of the June
Source: Nielsen prime time audience share

6

RCTI Has Occupied The Number One Position

No

Program

Station

25 June

26 June

27 June

28 June

29 June

30 June

Average

TVR

Share

TVR

Share

TVR

Share

TVR

Share

TVR

Share

TVR

Share

TVR

Share

1 Catatan Hati Seorang Istri

RCTI

5.1

20.9

5.1

20.4

6.0

22.6

7.0

32.1

6.5

27.7

6.3

26.0

6.0

25.0

2 Ganteng Ganteng Serigala

SCTV

5.9

24.0

6.7

26.5

5.9

23.8

3.9

22.6

3.8

20.1

5.6

22.8

5.3

23.3

3 Diam Diam Suka

SCTV

4.4

20.2

4.4

19.9

3.2

15.4

-

-

-

-

4.2

21.6

4.1

19.3

4 Mahabharata

ANTV

3.4

13.3

3.9

15

4.4

16.2

4

18.2

3.2

14.5

3.9

15.7

3.8

15.5

5 Tukang Bubur Naik Haji

RCTI

3.4

15.8

3.2

14.2

4.0

19.2

3.0

17.1

-

-

4.4

19.4

3.6

17.1

• Catatan Hati Seorang Istri has overtaken Ganteng Ganteng Serigala as the number 1 drama series
• Tukang Bubur Naik Haji performance has picked up in a strong fashion due to the Ramadan month
7

RCTI Drama Series Outperform World Cup

No

Program Name

Station
28 June 2014

TVR

Share

1

CATATAN HATI SEORANG ISTRI

RCTI

7.0

32.1

2

WORLD CUP: BRAZIL VS CHILE

ANTV

4.3

34.4

3

MAHABHARATA

ANTV

4.0

18.2

4

GANTENG GANTENG SERIGALA

SCTV

3.9

22.6

5

MAHADEWA

ANTV

3.6

15.8

29 June 2014
1

CATATAN HATI SEORANG ISTRI

RCTI

6.5

27.7

2

WORLD CUP: NETHERLANDS VS MEXICO

ANTV

4.6

35.7

3

MENGETUK PINTU HATI

SCTV

4.1

17.2

4

GANTENG GANTENG SERIGALA

SCTV

3.8

20.1

5

JUNIOR MASTERCHEF IND SEASON 1

RCTI

3.7

17.9

8

UPCOMING PROGRAMS

August 2014
November

2nd

2014

SUPER JUNIOR M

August 2014

July 2014

September 2014

9

MNC Has Rights To All Major Soccer Events in 2H 2014

22 Nov – 22 Dec 2014

19 Sep – 4 Oct 2014

9 – 23 Oct 2014

11-20 Aug 2014

10

MNC Channels Share Performance Summary Based on
I ndovision non FTA Channels, All 5+ Jakarta, Q2 2014

• Q2 2014 we booked total share of 25.18%
• Compared to other channel groups, MNC Channels’ total share is
leading, followed by FOX Group (13.79%), Disney (12.95%), and HBO
(10.55%).
Source : Nielsen TV Audience Measurement

11

MNC Channels are number 1 in News and Sports

Sports Channels Share Percentage
Based On All5+

MNC
SPORTS2
27.80

MNC
SPORTS1
36.01

News Channels Share Percentage
Based On Male15+

MNC NEWS
81.12

FOX SPORTS
16.95
CHANNEL NEWS
ASIA 9.57

STAR SPORT
15.54

EURO
SPORTS 0.91
GOLF
CHANNEL
2.79

SKY NEWS
0.29
BBC 0.35
Source : Nielsen TV Audience Measurement

CNN
INTERNATIONAL
6.26

FOX NEWS
0.15

AL JAZEERA
INTERNATIONAL
1.86

EURO NEWS
0.4

12

MNC Channels Share Performance Summary Based on
I ndovision non FTA Channels, All 5+ Jakarta, Q2 2014

Category

Position

Total Share

# Channels

News

1

81,12

8

Business

1

99,93

3

2,6,11

20,88

23

Music

2

42,51

5

Sports

1,2,5

66,6

6

1,2,3,5,8

83,39

14

Kids

4

7,87

11

Movie

6

5,56

15

1,2

100

2

Entertainment

Lifestyle

Religion

• Most of MNC branded channels are leading in its own category of genre

Source : Nielsen TV Audience Measurement

13

MNC Channels Share Performance Summary Based on
I ndovision non FTA Channels, All 5+ Jakarta, Q2 2014

Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Channel
CARTOON NETWORK
DISNEY JUNIOR/PLAYHOUSE DISNEY
DISNEY CHANNEL
MNC SHOP
CINEMAX

MNC SPORTS1
S-ONE
MNC KIDS
MNC SPORTS2
FOX MOVIES PREMIUM/STAR MOVIES
CBEEBIES
HBO
MNC INFOTAINMENT
HBO Hits
MNC ENTERTAINMENT
AXN
MNC LIFE STYLE
MNC NEWS
FOX SPORTS/ESPN
STAR SPORT
DISNEY XD
Yo Yo TV Asia
CELESTIAL
VISION 2 DRAMA
FOX CRIME

Rank
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

Channel
MNC MUSLIM
LIFE
MNC DRAMA
Fox Channel
NGC Wild
STAR WORLD
ANIMAX
8I
MNC Comedy
VISION 3 BABY
MNC FOOD TRAVEL
HBO SIGNATURES
MNC MOVIE
CHANNEL V
MNC MUSIC CHANNEL

FOX ACTION MOVIES
BBC KNOWLEDGE
NICKELODEON
FOX FAMILY MOVIES
HBO Family
WARNER TV
Toonami/Boomerang
SINDO TV/SUN TV
NATIONAL GEOGRAPHIC CHANNEL
MNC BUSINESS

• 10 MNC Channels are in the Top 20 Channel

Source : Nielsen TV Audience Measurement

14

MNC Building More New Studios

MNC TV New Office
and Studio

RCTI New Office and
Studio

Global TV New Office
and Studio

15

Thank You