Intermedia Capital (MDIA), immediate parent of ATNV, booked net profit of Rp550 billion last year, dropped 14.8% from 2016, mainly due to significant correction in the fourth quarter. Sales revenues grew 13.3% to Rp1.99 trillion last year, but softened substantially in the fourth quarter.<\/p>\n

In the quarter, sales grew only 5.8% year-on-year to Rp497 billion, while operating profit increased by 14.4% to Rp139 billion. Net profit attributable to equity holders, however, dropped by 55.3% to Rp157 billion.<\/p>\n

Operation-wise, Intermedia\/ANTV was better because operating profit grew significantly by 26.8% to Rp681 billion despite substantial increase in amortization of program material inventory. Besides, the decline in net profit was related to one-off gain of Rp250 billion booked in 2016. There was also tax penalties of Rp36.4 billion last year against Rp11 billion in 2016.<\/p>\n

<\/p>\n

Liabilities-side of the balance sheet suggested to bigger future burdens because Intermedia recorded additional long-term bank loans of Rp1.6 trillion (including Rp161.9 billion due within 12 months). We all know that the increase was related to Intermedia\u2019s additional loan to Visi Media Asia (VIVA), controlling shareholder, shown by Rp2.94 trillion of short-term assets due from related parties, skyrocketed from Rp990.8 billion in Dec 2016, and represented 110% of MDIA\u2019s total equity.<\/p>\n

Still, MDIA shares gained 2% to Rp286 Wednesday (Mar 21). At this price, MDIA has market capitalization of Rp11.2 trillion or 4.2 x equity, significantly higher than market leader Media Nusantara Citra (MNCN).<\/p>\n

Going forward, other than tighter competition in TV industry between terrestrial broadcasters, companies like ANTV face growing population of cable TV, which could help network and local TV stations. They also face growing competition for advertisements from social media platforms, including Youtube, Facebook, Instagram, etc.<\/p>\n

Upsides this year might come from major global and national sports events like FIFA World Cup and Asian Games Jakarta & Palembang. Simultaneous regional elections this year, legislative and presidential election next year are also expected to contribute more advertisements.<\/p>\n

DISCLAIMER: NO POSITION IN STOCKS MENTIONED IN THIS ARTICLE<\/p>\n","protected":false},"excerpt":{"rendered":"

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