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Globel Mediacom Q2 2015 Net Income -48% Y/Y To Rp101 Bil.

Today PT Global Mediacom Tbk (“MCOM” or “the Company”) reported its financial results for the first six months of 2015 (6M2015), ending 30th June 2015.

Commenting on the results, Group President & CEO Hary Tanoesoedibjo said:

“We have again proven our ability to weather through the difficult times. Despite weak industry growth and an unfavorable macroeconomic environment, for 1H2015 the Company booked a solid revenue growth at 5%. On advertising, the Company also managed to buck industry trends with -1% revenue growth compared to -8% industry growth this 1H2015.

“I am proud of MNC programming, which achieved very strong performance in 6M2015 including an all-time-record audience share of 39% in June. Our in-house produced programs “Preman Pensiun 2”, “Sakinah Bersamamu”, “Kultum”, and “Coorma Cooking Ramadane” have been topping the charts along with our long-running favorites “7 Manusia Harimau” and “Tukang Bubur Naik Haji”.

“Our mobile games company, Le Tang, continued its success by booking US$32 million revenue in 6M2015, an increase by 74% compared to 6M2014 revenue of US$18 million. The Group’s parenting application “Fumubang” has also excelled with more than 1 million subscribers and revenue growth of more than 264% yoy.

“I would like to reiterate our confidence in the state of our business and operations in the long run. We have completed a dividend payout of Rp355 billion in June, combined with our buyback plans and the exceptional performance of the Company’s programming, Global Mediacom is firmly on track for longterm growth and value creation.”

6M2015 Financial Results

Total consolidated revenue increase by 1% for 2Q2015 to Rp2,870 billion from Rp2,844 billion 2Q2014. The advertising and content revenue decreased by 1% to Rp1,801 billion from Rp1,824 billion last year. Subscriber based media revenue decrease by 3% YoY to Rp776 billion from Rp802 billion; whereas online based media/games revenue grew by 46% YoY to Rp197 billion from Rp135 billion last year.

For the first six months ended 30th June 2015, total consolidated revenue increase by 5% to Rp5,527 billion from Rp5,277 billion in 2014. The advertising and content revenue decreased by 1% to Rp3,254 billion from Rp3,283 billion last year. Subscriber based media revenue increase by 2% YoY to Rp1,603 billion from Rp1,577 billion; whereas online based media/games revenue grew by 107% YoY to Rp507 billion from Rp245 billion last year.

The Company’s largest contributor of revenue was advertising and content, which accounted for 59% of total revenue.

EBITDA: In 2Q2015 core EBITDA decreased by 8% to Rp1,024 billion from Rp1,112 billion with 36% core EBITDA Margin.
In 6M2015 core EBITDA decreased by 3% to Rp1,895 billion from Rp1,959 billion with 34% core EBITDA Margin. The decrease in core EBITDA margin can be attributed to the increased of operational expenses mainly due to distribution of performance bonus in April and May as well as holiday allowance in June.

Net Income: The Company’s net income for 2Q2015 decreased by 48% YoY to Rp101 billion, from Rp202 billion YoY.

The Company’s net income for 6M2015 decreased by 61% YoY to Rp195 billion from Rp506 billion previously. The decreased in net income was mainly due to higher forex loss and increasing interest cost. EPS is at Rp14 from Rp38 in the 6M2014. Meanwhile, adjusted EPS (excl. unrealized forex loss) for 6M2015 is at Rp65 compared to Rp66 in 6M2014.

Cash on hand and equivalent: By the end of 6M2015, the Company decreased its cash and money market instruments position to Rp3,369 billion from last year’s Rp4,150 billion.

Strong Programming Performances

MNC continues to lead the industry with toprated drama and talent search programs. These two segments remain the most profitable and most important segments for the TV industry.

MNC aired a very strong slate of new programs in 2Q2015, which booked an all-time-record audience share of 39%. 8 out of top 10 programs in June were MNC programs. In drama, 6 out of 10 top shows belonged to MNC. “Preman Pensiun 2”, a drama series produced by MNC Pictures, has held the number one drama spot since its premiere in May. Long-running favorite drama series “7 Manusia Harimau” and “Tukang Bubur Naik Haji” also performed and remain highly popular. MNC’s Ramadhan special programs, which included “Kultum”, “Coorma Cooking Ramadane” and the Ramadhan Drama series “Sakinah Bersamamu,” were also among the top 10 programs.

During Eid Al-Fitri, MNC aired several religious national box office movies including “Assalamualaikum Beijing” and “Ada Surga di Rumahmu”.

Exciting Program Line-Up for 3Q2015

Successful talent search programs “X-Factor Indonesia” and “Masterchef” will be aired throughout 3Q. The talent search format has delivered some of the Company’s most profitable programs, with 3 times more gross profit than competitors’ local in-house talent search programs.

The Company will broadcast a number of special programs including RCTI’s anniversary program “Mahardika 26” and “Preman Pensiun” FTV produced by MNC Pictures.

iNewsTV

iNewsTV has outperformed expectations by booking Rp81 billion revenue in 2Q2015. The Company is optimistic that iNewsTV will be able to achieve its targeted revenue for 2015 of Rp300 billion. iNewsTV is already outperforming one of the Company’s key competitors.

MNC Channels launches 20th local pay-TV Channel “Auto&Gadget”

MNC Channels continue to dominate the list of most-watched pay-TV channels. As of June, 10 of the 20 most-watched channels are MNCbranded channels.

MNC Channels has extended its portfolio by launching the new “Auto&Gadget” channel. The channel offers information, reference, recommendations and entertainment for automotive and technology enthusiasts. “Auto&Gadget” is exclusively available on channel 108 on Indovision and Playmedia.

Subscriber numbers, ARPU and Churn rate

MSKY’s total subscribers as of June 2015 reached 2.5 million. Subscribers growth during 2Q2015 was flat due to weak consumer spending across all industries, and during Ramadhan in 2Q2015 the subscribers’ trend tend to slope downward as the result of the shifting in expenditure to consumption sector. Churn rate was recorded at 1.75% for 6M2015. The Company’s ARPU was recorded at Rp100,760 for 6M2015.

Play Media fiber broadband rolls out

Play Media, the fastest internet service provider in Indonesia, is now available in Surabaya as of February 2015. MNC Play Media now has a presence in four cities including Jakarta, Semarang and Bandung dan Surabaya. The Company’s next targets are Greater Jakarta (Bogor, Tangerang, Bekasi dan Depok) Malang and Medan. MNC Play Media aims to have 600,000 homes pass by the end of 2015.

Exceptional performances from mobile games and Fumubang The Group’s mobile game Boonie Bears (BB2) and Armor Heroes have garnered more than 320 million downloads to date. In 2H2015, the group plans to launch two new IP games and one MMORPG game.

The Group’s parenting app “Fumubang” is growing rapidly and booked revenue growth of 264% yoy to US$4.7 million from US$1.3 million last year, driven by increases in family travel, activities and tickets purchased via the app. The application has more than 1 million subscribers.

Online based media/games revenue grew by 107% YoY to Rp507 billion from Rp245 billion in 6M2014.

Source: Global Mediacom