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LISTED COMPANY - JAKARTA. The performance of media issuers, such as PT Surya Citra Media Tbk (SCMA) and PT Media Nusantara Citra Tbk (MNCN), remained sluggish throughout 2023, due to a decline in their revenue streams.
For instance, MNCN's business revenue plummeted by 15.70% year-on-year (YoY) to IDR 8.54 trillion in 2023. In the previous year, MNCN had an income of IDR 10.15 trillion.
Consequently, the profit attributed to the parent entity, or MNCN's net profit, reached IDR 1.03 trillion in 2023. This achievement fell by 49.78% YoY from IDR 2.05 trillion in 2022.
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In a similar vein, SCMA's net income also took a hit in 2023. The net income of this Emtek group fell by 8.68% YoY from IDR 7.13 trillion in 2023 to IDR 6.5 trillion.
From the bottom line perspective, the annual profit attributable to the parent entity of SCMA reached IDR 334.60 billion in 2023. This figure fell by 60.46% YoY from IDR 846.36 billion in 2022.
Kiwoom Securities Research Team explained that the Analog Switch Off (ASO) policy continues to impact media issuers. Additionally, there is a sentiment of declining advertising expenditure.
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"Looking at the past elections, there has been no effect on the performance of media issuers. Advertising revenue is still declining," they recently told Kontan.
Kiwoom Securities believes that the elections have not yet significantly impacted media issuers. Therefore, the Kiwoom Securities Research Team suggests a wait-and-see approach.
Equity Research Analyst at Mirae Asset Securities, Christopher Rusli, observed that the media sector is still struggling to recover due to lacking supporting catalysts other than the general elections.
"Therefore, the prospects for 2024 are still not very promising. It would be best to avoid SCMA and MNCN until there is potential for performance improvement," said Christopher.
