2017’s Performance Review: Weakened by lack of Ads Spending
Although the increment of 27.8% in 2017’s audience share, SCMA only posted the ads revenue of IDR4.1 trillion (-1% y-y) in 9M17. We forecast that the low purchasing power driving the ads spending into weakened mood was the takeaways key for a relatively flat ads revenue suffered by SCMA.

Positive Outlook of 2018’s Events
In 2018, it is forecasted that ads spending will be rosier along with a number of events in 2Q18 and 3Q18. The political parties likely constitute as one of ads-revenue boosters considering that 2018’s Regional Elections (Pemilihan Kepala Daerah, “Pilkada”) across 17 provinces are potential for bolstering the ads revenue.

Another to Pilkada, sport events such as World Cup and Asian Games to be held in 2Q18 and 3Q18 are the potent driver for increment in ads revenue. SCTV holds no license of airing World Cup, yet the broadcast of such sport event historically bolstered ads spending.

We project that SCMA’s 2018 ads revenue likely surges 5.5% with the total revenue to hit IDR4.8 trillion. The figures are rosier than the prior year revenue considering the increment in ads spending along with the higher purchasing power in 2018.

Download full report HERE.