Bottom Line Undermined by Rupiah Depreciation
In 2Q18, MNCN posted the growth of 3.5% y-y to IDR2.09 trillion and of 1.8% y-y to IDR362 billion in the revenue and net profit, respectively. The surge in revenue was backed by the incline of 5.8% y-y to IDR2.04 trillion in the revenue posted by the ads. and content revenues. MNCN succeeded to post a stellar growth in the revenue in light of its downturn audience share in the early of 2018. On the quarter basis, its revenue edged up 30.3% q-q because its ahead of Idul Fitri local soap operas successfully attracted audiences.

However, the rupiah’s exchange rate for the U.S. dollar depreciated further whittled away its bottom line. Since the early of 2018, the loss of foreign exchange rate reached IDR221 billion. 2Q18’s pre tax profit margin also declined to 27.4% (vs. 33.8% in 2Q17).

Spurred by Trend of Upbeat Ads. Expense
The ads. revenue increased by 4.17% y-y to IDR3.54 trillion in 1H18. The increase aligned with the trend of upbeat ads. expenses on the national basis. According to Nielsen, a leading global information & measurement company, 1Q18’s ads. expenses in the mass media was buoyant at around 5% y-y (vs. +4% y-y in 1H17). The TV media still dominated the biggest ads. expense portion of 82% because the TV’s coverage to Indonesia reached 96%.

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