DEPOK (eNBe Indonesia) - President Joko ‘Jokowi’ Widodo has late last week inaugurated Lido City’s special economic zone (SEZ), which is developed by MNC Group in Lido, Bogor Regency, West Java province.
The president expects Hary Tanoesoedibjo’s MNC to speed up the development of tourism SEZ, which will consists property development and theme park.
Lido City is a multibillion dollar project, whose future depends on MNC Group’s financials and ability to attract partner investors.
Bear in mind that as leader of a political party (Perindo Party) competing in next year’s legislative election, Hary is also main financier, which might absorb the group’s cash.
MNC Group came up with mixed results last year. Coal mining unit PT MNC Energy Investments Tbk (IATA), for example, recorded net profit of US$38.96 million against US$2.6 million only in 2021, thanks to unbelievably high price of thermal coal.
The commodity, however, has retreated significantly from peak even though MNC could still generate handsome profit this year.
How about other business units?
Media Nusantara Citra (MNCN)–the parent of RCTI, MNC TV, and Global TV–booked profit attributable to owners of Rp2.05 trillion in 2022, down 16.6% year on year (y/y). It represents a net income margin of 25%.
Revenues fell 9% y/y to Rp9.06 trillion, mainly due to the recent implementation of Analog Switch Off (ASO) in Greater Jakarta area (locally known as Jabodetabek) in the fourth quarter (Q4) of 2022, which has resulted into many advertisers withholding their marketing spending, particularly on FTA TV that represents a big chunk of the Company’s revenue of about 58% in 2022.
MNCN’s gross profit declined by 12% y/y to Rp5.06 trillion, heavily impacted by the recent implemented of Analog Switch Off (ASO) and the lower decrease in direct cost compared to the
Company’s top line. MNCN’s Ebitda declined 11% y/y to Rp3.73 trillion in 2022, representing an Ebitda margin of 41%.
Back to revenue, MNCN said advertisement contributed Rp7.82 trillion in 2022, declined 15% y/y. While digital advertisement delivered a robust outcome with 25% increase y/y to Rp2.53 trillion last year.
Non digital revenue decreased by 26% y/y. That said, MNCN was leading in terms of advertisement expenditure on FTA TV, dominating the advertising pie by 44.9% during 2022.
MNCN’s content and IP business contributed Rp1.79 trillion revenue last year, a 22% y/y increase.
The Company also continues to expand its content distribution and licensing by generating Rp720 billion from third-party sales, up by 116% y/y. Also, MNCN’s Vision+ delivered Rp423 billion in revenue for 2022.
However, we note that MNCN is still the main cash cow for the group, pretty much like BUMI for Bakrie Group.
Difficulties at the company would significantly affect the whole group due to inter-company flow of funds.
This year is interesting to watch in the context of TV media business because level playing field has changed significantly with the ASO.
MNC Vision Networks (IPTV) suffered loss of Rp140.3 billion in 2022, against profit of Rp192.5 billion in 2021, as revenues fell 29.7% y/y to Rp2.68 trillion.
MNC Digital Entertainment (MSIN) suffered loss of Rp2.07 trillion in 2022, against profit of Rp1.6 trillion a previous year. Revenue grew 17% y/y to Rp2.43 trillion.
MNC Sky Vision (MSKY), pay TV provider, suffered loss of Rp245.4 billion in 2022, widened from loss of Rp181.6 billion in 2021. Revenue fell 24% y/y to Rp1.1 trillion.
Global Mediacom (BMTR) booked net profit of Rp2.06 trillion in 2022, declined 16% y/y, as revenue fell 12.2% y/y to Rp12.2 trillion.
MNC Digital Entertainment (MSIN), subsidiary of MNCN, recorded net income of Rp341 billion in 2022, declined 15% y/y, mainly by the amortization and depreciation of the Company’s digital assets (intangible) that amounted to Rp299.9 billion in 2022.
Ebitda has inflated by 15% y/y to Rp739 billion, with Ebitda margin of 21%. While revenue grew 14% y/y to Rp3.52 trillion.
MNC Asia Holding (BHIT) booked net profit of Rp2.68 trillion in 2022, grew 5.7% y/y, as revenue rose 1.2% to Rp18 trillion.
The consolidation of MNC Energy Investments IATA) into BHIT drove this increment in the Company’s revenue.
MNC Land (KPIG) booked net profit of Rp179.5 billion in 2022, grew 24.2% y/y, as revenues jumped 60.3% y/y to Rp1.12 trillion, driven by the skyrocketing revenues in the hotel, resort and golf segment by 306.3% to Rp507.5 billion.
MNC Kapital Indonesia (BCAP) booked net profit of Rp148 billion in 2022 on revenues of Rp2.73 trillion (up 4.2% y/y).
So, overall, we can say MNC’s financials were so-so. The group’s difficulties to inject more capital into MNC Bank (BABP), which triggered a merger with Lippo’s NationalNobu Bank, might have reflected overall financial standing.***
