PT Media Nusantara Citra Tbk is an Indonesia-based media company engaged in creating TV content and running advertising.
It operates four of Indonesia’s 11 free-to-air stations: RCTI, MNCTV, GlobalTV and iNewsTV. These are accompanied by 24 pay-TV channels.
MNCN also owns radio, print media, talent management and TV production companies.
MNCN’s revenue largely comes from Advertising revenues generated from three of its four free-to-air (FTA) TV stations. These include RCTI, MNCTV, and GlobalTV. Each station is designed to support advertisers who want to focus on specific target markets and consumers.
RCTI features drama and talent search programs, MNCTV focuses on dramas, variety shows and sports, GlobalTV entertains children and young adults with cartoons and Hollywood box-office success stories.
Part of its revenue also comes from Content as MNCN is the largest provider in Indonesia. It holds more than 270,000 hours of content in its library, which grows by 15,000 hours a year. As of 3Q16, MNCN has 28 channels. Completed in 2015, its integrated studio customizes content and works to create synergies between TV channels.
PT Wira Pamungkas Pariwara – its media investment management company is the most significant MNCN client and accounted for 25% of total revenues in 9M16, after representing the same amount in 2015.
Rosano Barack served as President Commissioner for MNCN until September 2016. He is the current President Commissioner PT Global Mediacom Tbk, majority owner of MNCN, and has served in that position since 1998.
Hary Tanoesoedibjo founded MNCN and was the President Director from March 2004 until September 2016 when he took over the President Commissioner position from Rosano Barack. Hary Tanoesoedibjo is also the current President Director of PT Global Mediacom Tbk and holds other major positions within other group companies.
David Fernando Audy recently took over as President Director. He has worked for the group since 2003 in various leading positions and holds a Bachelor’s Degree in Finance and Information System and a Master’s Degree in Accounting from the University of New South Wales, Australia.
The past 12 months (PTM) in the triangle below is as of 3Q16 results, we consider Hary Tanoesoedibjo being responsible for the full period.
World Class Benchmarking
Profitable Growth returned to World Class in the past 12 months. Besides the dip in 2013, MNCN has ranked World Class for the whole period.
The company ranked among the top 142 of 1,420 medium Consumer Discretionary companies around the globe.
Profitability has been the main driver of Profitable Growth and returned to #1 in the past 12 months. Growth jumped to #2 after being poor since 2013.
Asset utilization has been really poor without improvements. Profit margin drives the Profitability rank and has been World Class for all five periods.
Sales growth has remained poor. Margin change jumped to #1 in the past 12 months and drove the improvement in Growth rank.
Have you watched any of MNCN’s TV channels? What do you think?
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