PT Media Nusantara Citra Corporate Update April 2020 Listed and traded on the Indonesia Stock Exchange STOCK CODE: MNCN
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PT Media Nusantara Citra
Corporate Update
April 2020
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 (#7) based on Alexa measurement.• Okezone has more than 20 million UV daily• Okezone is ranked #22 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. FY-2019 financial performance: • YoY revenue to $600mn, up 12%• YoY EBITDA to $267mn, up 17%• YoY profit to $169mn, up 47%
1. GDP hit more than $1trillion for the first time in 2018 with annual growth rate between 5-6%.
2. Large population of 267 million people, growing by 3-4 million people
every year for the next 15 years.
3. Significant upside potential for adspend growth since adspend to GDP ratio is only 0.2%, one of the lowest in Asia.
4. Adspend on National FTA and digital will grow from 80% to close to 90% of the national adspend in the next 3-4 years.
MNCN Key Investment Highlights
2
14. Fast growing digital and content revenue:• In FY-2019, growing by 37%
YOY, contributing more than 25% of the total revenue.
• Projected to contribute more than 40% in 2022 and more than 50% in 2024.
At 15x P/E multiple, stock price is equivalent to Rp2,500.
3
Macro Drivers Support Industry Growth
54,9
55,1
5,3
5,5 5,5 5,5 5,5
2014 2015 2016 2017 2018 2019 2020 2021 2022
• A large & young population, 226mn
people below age of 54; growing by 3
to 4 Million people every year for the
next 15 years.
• A rising middle class group will grow
the advertising expenditure in line
with GDP growth
• A stronger growth will be driven by
more robust private investment
activities and acceleration of
infrastructure development
What are the macro drivers?
Source : Indonesian bureau of statistic 2019 report
27%
17%
43%
8% 6%
0 - 14 15 - 24 25 - 54 55 - 64 65+
A Young Population (2018)
265
10795
69 326
1.148.253
323.680 186.326
437.515 383.304 319.915
0
50
100
150
200
250
300
Indonesia Philippines Vietnam Thailand Malaysia Singapore
Population US$ Real GDP
* In Millions
Population & Real GDP (US$) (2018) *
Indonesia Growth of Real GDP (%)
4
The Largest Fully Integrated Media Company in Southeast Asia
DIGITALCONTENT & IPFREE-TO-AIR TV
CONTENT LIBRARY
Content library contains
more than 300,000 hours
and increasing by more
than 23,000 hours per year
PRODUCTION (Short – Mid – Long Form)
64%
1. Video Streaming
2. News Aggregator*
3. Audio Aggregator*
4. User Generated
Content (UGC)*
5. Games Aggregator*
ENTERTAINMENT
Entertainment FTA
focusing on family
audience
Largest news TV and
provide news programs to
the Group’s 3 entertainment
FTA
PUBLIC
36%
INFORMATION & SPORTS
TALENT MANAGEMENT
The biggest talent
management company
supported with music label
and publishing unit
5 in 1 Entertainment App
Social Media and Others
Library and Original
Content
MCN
News Portals
*available as stand-alone service
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% Radio
1%
-
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 drama
series and successfully fulfilled demand
on high quality Indonesian culture-based
entertainment
Source : Nielsen Prime Time FY-2019
37 39 4043 43 45
26 28 2824 26 24
1814 12 12 10 10
14 1415 17 15 13
4 4 4 4 4 40 0 1 1 1 0
2014 2015 2016 2017 2018 9M-2019
MNC Group Emtek Group Trans Corp
Viva Group Metro TVRI
• MNC Group dominates Advertising
market share amongst all FTA TV
Stations in the nation
• Content is the only way to capture
audience share and monetize advertising
dollars
• MNC sells different forms of advertising
from filler TVC, NTC (built-in, virtual ads),
and major special program (talent
search, etc)
Indonesia FTA TV Advertising Market Share
36,9 38,4 37,940,1
29,8
36,0
45,6
38,334,4
37,2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6
MNCN Audience Share 2008 – 2019*
TV Advertising Revenue
7
Built-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 Library, original
content, and MCN), News Portal, and
RCTI+.
*will be launched soon
Animation
Talent Search*
Drama Series* 41%
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% Others…
MNC Pictures Sinemart Mega Kreasi Verona Pictures Tobali Cakrawala Others
Drama Series Production – Indonesia Market Share
11
Source : Actual On-Air, internal research 9M-2019
Star Media Nusantara: Talent Management
Singing
Competition
Nowella
2014
Giselle
2008
Citra Scholastika
2010
Ajeng Astiani
2015
Aldy Saputra
2015
Angela July
2015
Christoper Edgar
2016
Sharla Martiza
2017Kim Kimberly
2017
Andmesh
Kamaleng
2017
Trio
Wijaya
2016
Indah Nevertari
2014
Mahesya
2015
Yogie
2015Dahlia
2015
Chef / Cooking
Contest
Deny
2015
Luvita
2015
Brian
2013Afif Winner
2014
Zidan
2014Patrick
2014
Navis Aditya
2017Sharon
2017
Christoper
Laurensius
2016
Other Talent
Search
Achintya Nilsen
2017
Natasha Mannuela
H 2016
Maria Harfanti
2015
Boy WIlliam
2010Libra Akila
2011
Okky Julian
2013Oge Arthemus –
Season 1, 2009Master Limbad –
Season 2, 2009
Bow Vernon
Season 5, 2012
Ayu Ting Ting
2010Lolita Agustine
2010Dede
2014
B Force
2017
Soul Sisters
2017
12
• The biggest talent management company in Indonesia with more than 380 talents with various
background 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, OOH/TV commercial, live chat on RCTI+, and content creators on MCN.
• There is a revenue split between talent and the Company for all bookings, including
endorsements on their respective social media platforms.
13
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
14
Number One YouTube TV Views & Subscribers in Indonesia
15
Source : MNC Research, FY-2019
MNC GROUP73.729.661
TRANS CORP32.530.380
NET 27.674.120
EMTK GROUP23.639.830
KOMPAS14.967.187
VIVA GROUP14.352.390
METRO2.378.250
RTV3.194.011
*Including Twitter, FB, IG, the total subscribers reach over 92 million, the
largest in South East Asia
MNC Media vs Competitors
VIEWS (IN BILLION)
12.2 11.510.4
6.1
3.4
MNCGROUP
TRANSCORP
NET EMTKGROUP
KOMPAS VIVAGROUP
24.1
MNC Media vs Competitors
Subscribers
MNCN Nationwide Youtube
market share:4.73% 2.19% 2.50%
Note: Data for Youtube Indonesia
Views Subscribers Video Uploads
Source : MNC
Research, As per Mar
2020
Maximize Brand’s Presence Through Engaging
Web-Series Ads
Source of Revenue from Youtube 2
16
Star Hits – Leading Digital Network
• Star Hits is a digital network that develops content creators, talent or influencers, to
cooperate with 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 started its MCN (Multi-Channel Network) operation in August 2019.
17
MCN (Aug 2019 – Mar 2020):
• 29mn subscribers
• 3bn views
MCN + Non – MCN
• 73.7mn subscribers (as of Mar 2020)
• 24.1bn views (FY – 2019)
Source of Revenue from Youtube 3
ALEXA RANKS
Top Indonesian Sites
MNC Group “News Portal” ranked #1 and #6 in Indonesia
Note : For News portal, Okezone.com is ranked #1 (20mn daily UV) and Sindonews.com #6
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 December 2019
18
1. Video Streaming 2. News Aggregator
3. Audio Aggregator 4. Talent Search - UGC
Welcome to RCTI+ Mobile Apps
• A spectacular extension of MNCN digital assets which is available for free via Apps (iOS & Android).
• Target in 2020 – 30 million Monthly Active User (MAU)
• LiveTV, catch up TV, and FTA programs
- current and library
• Fresh extended content and FTA unaired
content (bloopers and behind the scene)
• Creative content: Quiz, reward system,
original short, mid, & long form content,
voting, and chats with MNC talents
• Integration of MNCN news platforms into
RCTI+
• Top 20 articles from different categories
derived from the three general and news
portal
• Cooperation with third parties portal
aggregator
• Radio Aggregator – All radio stations
available digitally on the app with a
choice of channels from various
genres, years and mood selections
• Music radio playlist and podcast
content
• UGC podcast
• Video sharing experience
• Exclusive content upload from the library
in short and medium form and content
similar those uploaded on YouTube
• Talent search competition – facilitate user
to unlock their potential to the world
through online competition
19
5. Games Aggregator
• Provides access to new and exciting
games content
• A constantly expanding content offering
20
MNC Integrated Studios Facilities
MNCN FY-2019 FINANCIAL PERFORMANCE
21
Income Statements Variance Variance
In IDR mio FY-2019 FY-2018 YoY Q4-2019 Q4-2018 YoY
Revenues 8.353.365 7.443.905 12% 2.082.280 1.913.868 9%
Advertisement 8.065.137 7.242.401 11% 2.029.131 1.881.717 8%
Digital 697.396 261.101 167% 194.401 154.276 26%
Non-digital 7.367.741 6.981.300 6% 1.834.730 1.727.441 6%
Content 1.740.365 1.518.392 15% 448.234 422.945 6%
Others 113.911 199.825 -43% 32.453 6.954 367%
(Elimination) (1.566.048) (1.516.714) (427.538) (397.748)
Direct Cost *) 2.835.003 2.643.184 7% 592.704 538.151 10%
Depr & amort in Direct Cost 195.485 181.818 8% 50.444 38.020 33%
Gross profit 5.322.877 4.618.903 15% 1.439.132 1.337.697 8%
Gross profit margin 64% 62% 69% 70%
General & Administrative expense *) 1.804.950 1.623.994 11% 574.297 528.698 9%
Depreciation and amortization 258.927 255.146 1% 64.614 60.332 7%
EBITDA 3.713.412 3.176.727 17% 915.279 847.019 8%
EBITDA Margin 44% 43% 44% 44%
Net Income 2.352.529 1.605.621 47% 576.886 514.358 12%
Net income margin 28% 22% 28% 27%
Actual Actual
MNCN FY-2019 FINANCIAL PERFORMANCE
22
in Rp (billion) Revenue EBITDA Net Profit
MNCN FY-2019 (U) 8,353.4 3,713.4 2,352.5
Market Consensus 8,224.5 3,482.7 2,046.4
Difference (%) 1.6% 6.6% 14.9%
Income Statements Variance
In IDR mio FY-2019 FY-2018 YoY
Revenues 8.353.365 7.443.905 12%
Advertisement 8.065.137 7.242.402 11%
Digital 697.396 261.102 167%
Non-digital 7.367.741 6.981.300 6%
Content 1.740.365 1.518.392 15%
Others 113.911 199.825 -43%
(Elimination) (1.566.048) (1.516.714)
Direct Cost *) 2.835.003 2.643.184 7%
Depr & amort in Direct Cost 195.485 181.818 8%
Gross profit 5.322.877 4.618.903 15%
Gross profit margin 64% 62%
General & Administrative expense *) 1.804.950 1.623.994 11%
Depreciation and amortization 258.927 255.146 1%
EBITDA 3.713.412 3.176.727 17%
EBITDA Margin 44% 43%
Net Income 2.352.529 1.605.621 47%
Net income margin 28% 22%
Actual
MNCN Unaudited FY-2019 VS Market Consensus
Digital : • Digital Broadcast• Social Media (Library &
original content, etc)• Online portal
Non DigitalAdvertising : • Conventional TVC• Creative ads/ NTC ads• Equity Link
Content :• Content Production(in-house & third party)• Content Library
Others :• Talent Management• Print (being down sized)
23
78
183
325372
H1-2018 H2-2018 H1-2019 H2-2019
Digital Revenue (in IDR bio)
1.466 1.5191.740
FY-2017 FY-2018 FY-2019
Content Revenue* (in IDR bio)
The Emerging Content and Digital Ads Revenue
*Before elimination
• There is a strong growth in our digital and
content revenue. Both have already
contributed to 29% of the total revenue.
• The Company expects that by 2022, it
will reach more than 40% of the total
revenue.
• By 2024, it will contribute more than 50%
of the total revenue.
• Moving forward, It is expected that our
earnings in digital and content will
increase significantly with the inclusion of
MCN and RCTI+, which were introduced
in August 2019.
Thank You
For further information, please contact Investor Relations Division:
PT Media Nusantara Citra TbkMNC Tower 29th Floor
Jl Kebon Sirih No.17-19Jakarta 10340, Indonesia
Tel: 62-21 3913338Fax: 62-21 3910454
Website: www.mnc.co.id
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