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Good morning,
Media:
MNC Group Still Dominates Audience Share
We remain OVERWEIGHT on the Media
Sector as:
1. We expect a recovery in Indonesia’s
economy;
2. We have seen improvement in the sales
growth of consumer companies – which could benefit the media industry.
Based on the latest Nielsen data in September, Media
Nusantara maintained its dominance in prime time audience share of 45.1%
(-0.1ppt MoM). However, Surya Citra failed to impress September’s prime time
audience share numbers as it dropped by 0.8ppt MoM.
¨ Rajawali
Citra Televisi Indonesia’s (RCTI) 1.8-ppt improvement in prime time audience
shares helped retain Media Nusantara Citra’s (Media Nusantara) dominance. In September, RCTI
retained the top spot in prime time audience share, as it improved 1.8ppts
MoM to 31.2% - which is the highest since February. Thanks to its strong
programme line up like Anak Jalanan, Tukang Bubur Naik Haji, and new
drama series Anugrah Cinta. Due to the improvement of RCTI’s audience
share, Media Nusantara has been able to maintain its dominance in prime time
audience share of 45.1% (-0.1ppt MoM). Despite the strong improvement in
RCTI, Media Nusantara’s other TV stations – MNCTV and Global TV – failed to
impress as their audience shares fell 1.8ppts and 0.1ppts MoM respectively.
We suspect that MNCTV’s market share was taken by Trans7 (+1ppt MoM).
¨ Surya
Citra Media (Surya Citra) failed to continue the recovery in prime time
audience shares.
Surya Citra’s prime time audience share slipped by 0.8ppts MoM to 23.4% in
September. It was due to the decline in SCTV’s prime time audience share by
1.4ppt MoM to 10.4%. We think that RCTI has been able to grab the market
share from it. Meanwhile, Indosiar managed to continue its good performance
in September – whereby its prime time audience share improved by 0.6ppts MoM
to 13%. Thanks to its programs like Bintang Pantura 3 and Golden
Memories Reunion. We view that Indosiar would be a driver for Surya
Citra’s performance in 2H16 on the back of its high prime time audience share
– which could lead to higher sponsorship fees.
¨ Bakrie
Group and Trans Group improved their prime time audience shares. Bakrie Group,
which owns two TV stations, ANTV and TV One, managed to improved its prime
time audience share in September – growing by 0.5ppts MoM to 15.2%. ANTV’s
prime time audience share grew 0.6ppts MoM on the back of its Turkish
Drama. Meanwhile, Trans Group also recorded an improvement in prime time
audience share of 12.9% (+0.3ppts MoM). Trans7, one of its TV stations,
showed the highest improvement at 7.6% (+1ppt MoM) on the back of its MotoGP,
and new programme, Opera Van Java.
¨ Maintain
OVERWEIGHT.
We continue to like Media Nusantara, given:
i. Better margins from cost savings due to the completion
of three new studios and potential acquisition of a production house;
ii. A strong programme line up in 2H16 to drive its rate
card;
iii. Potential higher dividend in FY17F.
Meanwhile, we
remain positive on Surya Citra on the back of:
i. An expected improvement in SCTV’s audience share from
its new drama series and sports content;
ii. Potential additional revenue stream from big screen
movies;
Potential higher ad spend from the economic
recovery. (David Hartono)
Link
to report: MNC Group Still Dominates Audience Share
Link
to Daily report: Indonesia Morning Cuppa - 071016
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Media
Highlights:
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Economics
Indonesia consumer
confidence index recorded at 110 in September
Corporates
Logindo to enter LNG
carrier business
Matahari Putra Prima
appointed new CFO and Chief Strategic and Planning
Pembangunan
Perumahan to work on IDR32trn multi years housing project
Ramayana Lestari to
partner up with Tokopedia
Sido Muncul to
allocate 11% from revenue for advertising and promotion
Bukit Asam expands
to export market
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Our
Recent Publication:
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Company Update: AKR
Corporindo: Trimming Estimates But Outlook Still Buoyant
Link to report: AKR
Corporindo: Trimming Estimates But Outlook Still Buoyant
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Sector update:
Regional Plantation: Are Current CPO Prices Sustainable?
Link to report: Regional
Plantation: Are Current CPO Prices Sustainable?
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Company Update:
Ciputra Development: The Mystery That Is Valuation
Link to report: Ciputra Development:
The Mystery That Is Valuation
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Economic Highlights:
Inflation Picks Up Slightly In September
Link to report: Inflation Picks Up
Slightly In September
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Sector News Flash: Regional
Oil & Gas: OPEC Is Back (For Real)
Link to report: Regional Oil &
Gas: OPEC Is Back (For Real)
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Company Update: Bumi
Serpong Damai : Proposes New USD Bond Issuance
Link to report: Bumi Serpong Damai :
Proposes New USD Bond Issuance
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Company Update:
Wijaya Karya Persero : Seeds Of Growth
Link to report: Wijaya Karya Persero
: Seeds Of Growth
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Sector update:
Media: A Magic Year To Continue
Link to report: A
Magic Year To Continue
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Strategy: Regional
Monthly : Catalysts Looming for Indonesia & Thailand Markets
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Company Update:
Nippon Indosari Corpindo : Likely Strong 3Q16 Sales Despite Rising New
Players
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Best regards,
Helmy Kristanto
Director
Head of Indonesia
Research
PT. RHB Securities Indonesia
