MNCN and SCMA Part Ways in Q3
Media Nusantara Citra (MNCN) and Surya Citra Media (SCMA), two of the largest players in the country’s TV broadcasting industry, may continue their fights over production house Sinemart. They, interestingly, reported completely different developments in third quarter of 2017. MNCN, controlled by businessman cum politician Hary Tanoesoedibjo, looks stronger in the quarter. Really?
Strong Third Quarter for Astra & Unilever
Astra International (ASII) and Unilever Indonesia (UNVR) are market leaders in their respective field. Astra booked net profit of Rp14.18 trillion in the first nine months of 2017, an increase of 25.8% from the same period last year. After a modest year-on-year growth in the first half, Astra enjoyed 18.4% growth in sales revenue in the third quarter.
SmartFren’s Loss Ballooned
SmartFren, telecommunication company owned by Sinarmas Group, booked net loss of Rp2.82 trillion in Jan-Sep 2017, expanded by nearly 120% from the corresponding period last year. Interestingly, SmartFren posted net loss of Rp1.66 trillion in the third quarter alone, skyrocketed 168% from the same period last year.
Third Quarter Dynamics: Sido Muncul Improves, KFC Weakens
Sido Muncul (SIDO), producer of health consumer products, recovered with 9.1% sales revenue growth in third quarter after reporting weak performance in the first half. Fast Food Indonesia (FAST), owner of Kentucky Fried Chicken (KFC) outlets, however, posted only 2.8% growth in the quarter after a strong first half.
Krakatau Steel: Improved in Q3, but Not Enough
State-owned steel producer PT Krakatau Steel (KRAS) Tbk recorded net loss of US$75 million in the first nine months of 2017, down 34.6% from the corresponding period last year on improved performance in third quarter. Unlike the first half, KRAS enjoyed strong performance in the third quarter.
Ride-Sharing App Continues to Pressure Conventional Taxi
Blue Bird (BIRD), market leader for conventional taxi services, booked net profit of Rp302 billion in Jan-Sep 2017, dropped by 16.8% from the corresponding period last year on falling sales revenue and squeezed margins. Margins were better in the third quarter compared to the first half, but dropped substantially from the same period last year.
Cost Cutting & Refund of Excise Penalty Boost Multi Bintang’s Profit
Beer producer PT Multi Bintang indonesia (MLBI) Tbk booked net profit of Rp920.7 billion in Jan-Sep 2017, jumped by 35.6% from the corresponding period last year, thanks to lower costs. The market leader actually reported only 1.6% increase in sales revenue to Rp2.33 trillion, but cost of goods sold declined 1.33% to Rp793.97 billion.
Infrastructure Journal No.32/2017
It’s still long way from seeing the third runway at Soekarno-Hatta International Airport, the busiest in the country, but Angkasa Pura II, operator of the airport, claims progress in land acquisition. This is one of projects initiated by the previous administration, but delayed due to difficulties in land acquisition. Angkasa Pura said it has added 21 hectares from the previously acquired 49 hectares, but the 70 hectares in hands is not even half of the total land needed (216 hectares).
Mandalika SEZ: Who’s Who
President Joko ‘Jokowi’ Widodo is scheduled to inaugurate Mandalika special economic zone (SEZ) in Lombok Island, West Nusa Tenggara today. Mandalika is one of ten emerging destinations championed by Jokowi-Kalla administration to be the New Bali. Who’s in there?
Arwana Citramulia & The Upcoming Gas Incentive
Ceramic producer Arwana Citramulia (ARNA) booked net profit of Rp84 billion in the first nine months of 2017, an increase of nearly 38% from the corresponding period last year. ARNA, unfortunately, is among top losers this year due to uncertainty surrounding natural gas price policy.