pt media nusantara citra update... · 2019-11-11 · 5. four national fta with the largest audience...
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PT Media Nusantara Citra
Corporate Update
November 2019
Listed and traded on the Indonesia Stock Exchange
STOCK CODE: MNCN
5. Four National FTA with the largest audience share of 40% and adspend share of 45%.
• 40% audience shares translate to more than 100 million viewers daily, the largest in
the country even if it’s compared to any social media platform.• Launched its streaming (OTT) service called RCTI+.
7. The Largest Library with more than 300K hours,
consisting of more than 60% non
news.
6. The Largest Content Production of 23K hours yearly in long, mid and short formats:
• 40% market share in drama or close to 5,000 hours of drama production yearly.
• 80%+ market share in talent search & animation.
8. The Largest Talent Management with close to 400 talents under management
with 5 + 5 years option to extend.
9. Started MCN (Multi Channel Network) on YouTube in August 2019 and
generating 1.63billion views and 11million subscribers in just a month. Including
MNCN Channels on Youtube, the total number of views reached 20.1billion with 42
million subs by the end of August 2019.
10. Owning the largest sites called Okezone (#1 above Google #2) and
Sindonews (#6) based on Alexa measurement.
• Okezone has more than 19 million UV daily
• Okezone is ranked #27 globally.
11. Strong growth in digital advertising revenue• Derived from mobile apps, general/news portal, YouTube revenue share
• Excluding future digital revenue from RCTI+ and MCN.
12. Strong growth in Non Time
Consuming Ads (NTC Ads) in the
form of built in, virtual and squeeze
frame as well as equity link.
13. 1H 2019 financial
performance: • YoY revenue to $300mn, up 15%
• YoY EBITDA to $134mn, up 23%
• YoY profit to $86mn, up 74%
1. GDP hit more than $1trillion for the first time in 2018 with annual
growth rate between 5-6%.
2. Large population of 267 million
people, growing by 3-4 million people
every year for the next 15 years.
3. Significant upside potential for adspend growth since adspend to GDP
ratio is only 0.2%, one of the lowest in Asia.
4. Adspend on National FTA and digital will grow from 80% to close to
90% of the national adspend in the next 3-4 years.
MNCN Key Investment Highlights
2
14. Fast growing digital and
content revenue:• In 1H 2019, growing by 48%
YOY, contributing 25% of the
total revenue.
• Projected to contribute more
than 40% in 2022 and more
than 50% in 2024.
At 15x P/E multiple, stock
price is equivalent to
Rp2,500.
3
Macro Drivers Support Industry Growth
54,9
55,1
5,3
5,5 5,5 5,5 5,5
2014 2015 2016 2017 2018 2019 2020 2021 2022
• A large & young population, 226mn
people below age of 54; growing by 3
to 4 Million people every year for the
next 15 years.
• A rising middle class group will grow
the advertising expenditure in line
with GDP growth
• A stronger growth will be driven by
more robust private investment
activities and acceleration of
infrastructure development
What are the macro drivers?
Source : Indonesian bureau of statistic 2019 report
27%
17%
43%
8% 6%
0 - 14 15 - 24 25 - 54 55 - 64 65+
A Young Population (2018)
265
10795
69 326
1.148.253
323.680 186.326
437.515 383.304 319.915
0
50
100
150
200
250
300
Indonesia Philippines Vietnam Thailand Malaysia Singapore
Population US$ Real GDP
* In Millions
Population & Real GDP (US$) (2018) *
Indonesia Growth of Real GDP (%)
4
The Largest Fully Integrated Media Company in Southeast Asia
DIGITALCONTENTFREE-TO-AIR TV
CONTENT LIBRARY
Content library contains more than 300,000 hoursand increasing by more
than 23,000 hours per year
PRODUCTION (Short – Mid – Long Form)
64%
• RCTI +
• Digital content(original content,library)
• MCN
• News portal
• Digital broadcast
• Radio Aggregator Apps
• User Generated Content (UGC)
ENTERTAINMENT
Entertainment FTA focusing on family audience
Largest news TV and providenews programs to the Group’s 3 entertainment FTA
PUBLIC
36%
INFORMATION & SPORTS
TALENT MANAGEMENT
The biggest talent management company in
Indonesia with more than 380 talents under exclusive
contract
Indonesia Advertising Market Share
• Given the infrastructure constraint, TV is the only medium to reach a mass audience.
• TV advertising is expected to maintain a dominant market share
• A more stable economic growth will boost ad spend, TV advertising should trend at a 5% CAGR between 2017-22
• 94% smartphone penetration among online users, grew from 40% in 2013.
2018
2022
TV, 64%Internet, 16%
OOH2%
Print, 16%Radio, 2%
TV, 62%Internet,
25%
OOH2%
Print; 10%
Radio1%
-
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
30.000.000
35.000.000
40.000.000
2015 2016 2017 2018 2019 2020 2021 2022
TV Internet Print & Related Other
Indonesia Advertising – By Media (in Rp Mill)
Source : MPA 2018 report, adjusted 5
The Largest Audience Share & FTA TV Advertising Market Share
• MNCN continued to produce top dramaseries and successfully fulfilled demandon high quality Indonesian culture-basedentertainment
Source : Nielsen Prime Time September 2019
37 39 4043 43 45
2628 28
2426 25
1814
12 1210 10
14 1415
1715 15
4 4 4 4 4 40 0 1 1 1 1
2014 2015 2016 2017 2018 1H-2019
MNC Group Emtek Group Trans Corp Viva Group Metro TVRI
• MNC Group dominates Advertisingmarket share amongst all FTA TVStations in the nation
• Content is the only way to captureaudience share and monetize advertisingdollars
• MNC sells different forms of advertisingfrom filler TVC, built-in, virtual ads,mobile ads and other creative ads
Indonesia FTA TV Advertising Market Share
35,3 36,7 37,239,4
29,1
36,4
44,8
38,435,1
41,1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*
6
MNCN Audience Share 2008 – 2019*
TV Advertising Revenue
7
Build-In AdvertisingConventional TVC
Advertising
Revenue Stream
Virtual Advertising on Drama Series (TOP) Squeezed Frame Advertising
• Conventional TVC (15” and 30”) during
commercial break
• Creative ads/ Non Time Consuming ads
(Built-in, Virtual Ads, Squeeze Frame,
etc)
• Equity Link (Air time and Content
Library)
• Localized RTX* & Geo-tagging TVC*
• Digital Ads : Digital Broadcast, Social
Media (including original content),
Online Portal, UGC, MCN, RCTI+
*will be launched soon
Local Animation
Reality Program
Infotainment
Talent Search*
Drama Series* 41%
33%
32%
8
• Generating highest revenue per one hour broadcast
CONTENT LIBRARY LICENSING
(FTA, DTH Pay TV, IPTV, Mobile/Streaming, OTT)
• Produces around 23,000 hours of content annually.
• Owns more than 300,000 hours of content library with
breakdown of 60% non News and 40% News content.
LOCAL CONTENT
IN-HOUSE PRODUCE
80%
95%
CONTENT PRODUCTION
(group & non-group)
Short, Mid, and Long Form
• Content produced in-house include Drama, Talent
Search, Animation, Sitcom, Movie, Reality,
Infotainment, Variety, Talk Show, News.
more than 80%
Content Revenue
more than 80%
9
The Largest Content Producer and Library Owner
Content
VARIETYTALENT SEARCHDRAMA ANIMATION SITCOM REALITY INFOTAINMENT TALK SHOW NEWS
The Best Talent Search Program
10
41%
Sinemart24%
Mega Kreasi13%
Verona Pictures6%
Tobali5%
Cakrawala3%
Others8%
MNC Pictures Sinemart Mega Kreasi Verona Pictures Tobali Cakrawala Others
Drama Series Production – Indonesia Market Share
11
Source : Actual On-Air, internal research 8M-2019
Star Media Nusantara: Talent Management
SingingCompetition
Nowella2014
Giselle Anastasia 2008
Citra Scholastika2010
Ajeng Astiani2015
Aldy Saputra2015
Angela July 2015
Christoper Edgar2016
Sharla Martiza2017
Kim Kimberly2017
AndmeshKamaleng
2017
Trio Wijaya2016
Indah Nevertari2014
Mahesya2015
Yogie2015
Dahlia2015
Chef / CookingContest
Deny 2015
Luvita2015
Brian 2013
Afif Winner2014
Zidan2014
Patrick2014
Navis Aditya2017
Sharon2017
ChristoperLaurensius
2016
Other TalentSearch
Achintya Nilsen2017
Natasha Mannuela H 2016
Maria Harfanti2015
Boy WIlliam2010
Libra Akila2011
Okky Julian2013
Oge Arthemus –Season 1, 2009
Master Limbad –Season 2, 2009
Bow Vernon Season 5, 2012
Ayu Ting Ting2010
Lolita Agustine2010
Dede Sunandar2014
B Force2017
Soul Sisters2017
12
• The biggest talent management company in Indonesia with more than 380 talents with variousbackground under exclusive contract (5 years + 5 years).
• The Company manages national talent to perform in TV shows (group or non group), radios,off air events and OOH/TV commercial.
• There is a revenue split between talent and the Company for all bookings, includingendorsements on their respective social media platforms.
Digital Mobile/ Online Advertising Revenue
13
• Digital Broadcast
• Social Media (Library & original content, etc)
• Library/channel licensing to digital platform
• Online portal, UGC, MCN
• RCTI+
14
Digital Broadcast
Digital quiz interactive where user can answer
al the questions on TV via RCTI Mobile. The
questions will be appeared in a form of
template with 110 sec. The questions consist
of product knowledge from brand and
program
Second Screen Quiz Interactive Second Screen Activity
Brand activation on RCTI Mobile where users
can send their comments and upload their
photos which inline with brand campaign
Second Screen Live Chat
Users can access live streaming on RCTI
Mobile as well as having interactive with
another user using chat feature
Banner Random
Native Ads
Pre Roll
A small picture on
top of page with
landing page
Bigger than
banner, native
ads are in the
middle of the
page. Brand can
put their landing
page on native
ads
TVC with 15 sec
duration. Pre roll
will appear before
the video content
Most watched Indonesia YouTube contentcomes from our short clips drama series
Source of Revenue from Youtube 1
15
Number One YouTube TV Views & Subscribers in Indonesia
16
Source : MNC Research, as per October 2019
MNC GROUP
51.492.936
TRANS CORP
25.001.580
NET
21.643.010
EMTK GROUP
17.588.680
KOMPAS
5.376.460
VIVA GROUP
10.290.215
METRO
1.847.621
RTV
2.385.961
*Including Twitter, FB, IG, the total subscribers reach over 92 million, the
largest in South East Asia
MNC Media vs CompetitorsVIEWS (IN BILLION)
10.8 10.3
8.6
3 2.8
MNCGROUP
TRANSCORP
NET EMTKGROUP
KOMPAS VIVAGROUP
22.1
MNC Media vs CompetitorsSubscribers
MNCN Nationwide Youtubemarket share:
5.48% 2.33% 3.43%
Note: Data for Youtube Indonesia Views Subscribers Video Uploads
Maximize Brand’s Presence Through Engaging WebSeries Ads
17
Source of Revenue from Youtube 2
Star Hits – Leading Digital Network
• Star Hits is a digital network that develops content creators, talent or influencers, to cooperatewith the brand and to create the ecosystem that are connected in the content.
• Owns various channels under star hits family brand, which focuses on various different genres.• Currently, Star Hits also coordinates all of MNC Group’s channels in all social media.• Star Hits has received MCN (Multi-Channel Network) license from Youtube in July 2019.
18
MCN (August - October):• 15mn subscribers• 1.97bn views
MCN + Non – MCN (Jan – Oct 2019)• 51.5mn subscribers• 22.1bn views
Source of Revenue from Youtube 3
ALEXA RANKSTop Indonesian Sites
MNC Group “News Portal” ranked #1 and #6 in Indonesia
Note : For News portal, Okezone.com is ranked #1 (19mn daily UV) and Sindonews.com #4
1. Okezone.com
2. Google.com
3. Tribunnews.com
4. Youtube.com
5. Detik.com
6. Sindonews.com
7. Kompas.com
8. Liputan6.com
9. Bukalapak.com
10. Grid.id
11. Blogspot.com
12. Google.co.id
13. Idntimes.com
14. Kumparan.com
15. Yahoo.com
16. Suara.com
17. Kaskus.co.id
18. Kapanlagi.com
19. CNNindonesia.com
20. Alodokter.com
*Update 30 August 2019
19
Welcome to RCTI+ Mobile Apps
• Single & Multi Camera Views for Streaming
• Catch up TV
Excellent Live Streaming
• FTA Programs - Current and Library
• Extended Content –Rejuvenated Library Content, Fresh Extended Content, and FTA Unaired Content (bloopers and behind the scene)
• Creative Contents: Quiz, Reward system, Original short & mid form content, Audition, News clips, Radio, etc
• Content Partners - (SMN & Third Party Partners)
Creative Content
• A spectacular extension of RCTI, MNCTV, GTV, and iNews FTA TV
which is available for free via Apps (iOS & Android).
• MNC is digitally all in!
20
21
MNC Integrated Studios Facilities
MNCN 9M-2019 FINANCIAL PERFORMANCE Expanding our source of revenue through NTC ads, Digital ads, and Content
22
Income Statements Variance Variance
In IDR mio 9M-2019 9M-2018 YoY Q3-2019 Q3-2018 YoY
Revenues 6.271.085 5.530.036 13% 2.019.116 1.840.492 10%
Advertisement 6.036.006 5.360.684 13% 2.003.262 1.817.074 10%
Digital 502.995 106.825 371% 177.780 29.199 509%
Non-digital 5.533.011 5.253.859 5% 1.825.482 1.787.875 2%
Content 1.292.132 1.095.447 18% 379.234 334.544 13%
Others 81.458 192.871 -58% 26.706 27.221 -2%
(Elimination) (1.138.511) (1.118.966) (390.086) (338.347)
Direct Cost *) 2.242.300 2.105.033 7% 754.716 708.923 6%
Depr & amort in Direct Cost 145.041 143.798 1% 53.629 50.063 7%
Gross profit 3.883.744 3.281.205 18% 1.210.771 1.081.506 12%
Gross profit margin 62% 59% 60% 59%
General & Administrative expense *) 1.230.652 1.095.296 12% 375.255 350.471 7%
Depreciation and amortization 194.314 194.814 0% 67.270 57.389 17%
EBITDA 2.798.133 2.329.707 20% 889.145 781.098 14%
EBITDA Margin 45% 42% 44% 42%
Net Income 1.775.643 1.091.261 63% 555.780 388.198 43%
Net income margin 28% 20% 28% 21%
Actual Actual
MNCN Q3-2019 VS Q3-2018Our digital initiative consistently supporting our revenue growth while the cost maintained efficiently
23
Digital :
• Digital Broadcast
• Social Media (Library & original
content, etc)
• Online portal
Non Digital Advertising :
• Conventional TVC
• Creative ads/ NTC ads
• Equity Link
Content :
• Content Production
(in-house & third party)
• Content Library
Others :• Talent Management
• Print (being down sized)
Income Statements Variance
In IDR mio Q3-2019 Q3-2018 YoY
Revenues 2.019.116 1.840.492 10%
Advertisement 2.003.262 1.817.074 10%
Digital 177.780 29.199 509%
Non-digital 1.825.482 1.787.875 2%
Content 379.234 334.544 13%
Others 26.706 27.221 -2%
(Elimination) (390.086) (338.347)
Direct Cost *) 754.716 708.923 6%
Depr & amort in Direct Cost 53.629 50.063 7%
Gross profit 1.210.771 1.081.506 12%
Gross profit margin 60% 59%
General & Administrative expense *) 375.255 350.471 7%
Depreciation and amortization 67.270 57.389 17%
EBITDA 889.145 781.098 14%
EBITDA Margin 44% 42%
Net Income 555.780 388.198 43%
Net income margin 28% 21%
Actual
24
78
183
325
H1-2018 H2-2018 H1-2019
Digital Revenue (in IDR bio)
1.466 1.5191.292
FY-2017 FY-2018 9M-2019
Content Revenue* (in IDR bio)
The Emerging Content and Digital Ads Revenue
*Before elimination
• There is a strong growth in our digital andcontent revenue. Both have alreadycontributed to 25% of the total revenue.
• The Company expects that by 2022, it willreach more than 40% of the totalrevenue.
• By 2024, it will contribute more than 50%of the total revenue.
• Moving forward, It is expected that ourearnings in digital and content willincrease significantly with the inclusion ofMCN and RCTI+, which were introducedin August 2019.
Thank You
For further information, please contact Investor Relations Division:
PT Media Nusantara Citra Tbk
MNC Tower 29th Floor
Jl Kebon Sirih No.17-19
Jakarta 10340, Indonesia
Tel: 62-21 3913338
Fax: 62-21 3910454
Website: www.mnc.co.id