MNC Targets Rp.6.51 Trillion Advertisement Revenue in 2015

Jakarta – PT. Media Nusantara Citra Tbk (MNC) targets ad revenue of Rp.6.51 trillion (growing 10% in 2015).

Previously, the company's consolidated revenues decreased by 9% in the 4Q of 2014 to Rp 1.62 trillion from Rp 1.77 trillion in the 4Q of 2013. Ad revenues contributed 77% of consolidated revenue but on the other hand it decreased by 7% to Rp 1.24 trillion in the 4Q of 2014 from Rp 1.34 trillion.

If calculated, along the 2014, MNC consolidated revenue increased 2% to Rp 6.66 trillion from Rp 6.52 trillion in the same period in 2013.

The largest contributor of total revenue is ad revenue with 89%. It increased 4% to Rp 5.92 trillion from Rp 5.71 trillion.

""Ad revenue decreased of 7% in 4Q, along with advertisers who reduce ad spending because of the uncertainty of the election and the debate about rising fuel prices,"" said Hary Tanoe on Wednesday (08/04).

According to Hary, although the company is the middle of a difficult situation, it still managed to reduce costs and posted a profit margin before interest, taxes, depreciation and amortization (EBITDA) of 46% in the 4Q.

The company's growth is also derived from pay-TV channels, such as MNC Channels, MNC Sports, MNC News and MNC Business. Meanwhile, the number of subscribers of PT MNC Sky Vision Tbk, known as Indovision, is also growing rapidly. Management assesses that the level of market penetration is still relatively low, so that the potential of the company to continue growing is still very large.

Similarly, the audience potential of MNC Channels will also continue to increase. Currently, the cost of advertising on it is about $60 per 30 seconds and less than 5% of the supply of ad spots sold.

However, by the growth of MNC Sky customer base, the company expects a significant increase in the ad cost and sales volume. The management states that this business has great potential, as happened in the pay-TV industry in the United States 30 years ago.

Sumber : www.cnnindonesia.com

Toyib Abdullah / Gaby Oksavira