2017 Marked by Underperformance
SCMA posted 2017 net profit of IDR1.3 trillion or edging down by 11.4% y-y. The downturns in 1Q17, 3Q17, and 4Q17 ads revenues on yearly basis were attributable to the decline of 1.6% y-y in 2017 revenue. Another to the downturns in ads revenue, the upswing in 4Q17 business expenses— amortization expense, professional fee, and allowance for doubtful account— slid 4Q17 EBIT margin down to 27%.
Plan for Contents and Media Expansion
Receiving the approval from the shareholders, SCMA will issue 1.46 billion new shares with the targeted proceeds of IDR3.57 trillion through a private placement. The proceeds are equal to 10% of the total issued capital and paid-up capital. The proceeds are used for not only strengthening capital structure but also funding any of acquisitions and cooperation for the contents and media expansion.
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