Outperformance in the End of 2017
MNCN marked the end of 2017 with posting the growth of 4.8% into IDR7.05 trillion in revenue. The top line growth was underpinned by the 4Q17 outperformance succeeding in achieving the growth of 14% y-y into IDR1.67 trillion in revenue.
Another to the top-line outperformance, its margin performance was reign in upswing mood. The efficiency of content and program segment succeeded in beefing up the gross margin of 5% y-y. However, the general and administrative expense hiking by 12.7% y-y suppressed the bottom line performance resulting in nudging up net margin and net profit by 0.3% y-y and 6.2% y-y respectively.
Consistent Improvement in Local Contents
On the annual basis, the upswing in top-line performance was backed by the respective growth of 46.5% and 10.4% in content revenue and non-RCTI ads revenue. Through MNC Pictures, the local contents in MNCN’s TV channels reached 90% in 2017.
This backdrop was a logical takeaway for a more diversified business MNCN has as it is not reliant only on the ads revenue. The diversified revenue sources allow MNCN to maintain its performance even though its TV channels have no broadcasting license for such special events as World Cup Champion and Asian Games.
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