MNC IS SET TO CAPITALIZE ON HIGHER ECONOMIC GROWTH WITH A SOLID PERFORMANCE IN THE FIRST TWO MONTHS OF 2010
2010 - Jakarta, 5 Apr 2010

MNC recorded Rp3.92 trillion in consolidated revenues as of 31st December 2009 as compared to Rp3.92 trillion as of 31st December 2008 (please see Figure 1).

Revenues from advertising and non advertising were relatively stable as compared to the same period last year. The relatively slower growth in advertising-based revenues were primarily due to an extraordinary event - the Euro Cup 2008 and the less than optimal fourth quarter 2009 performance from TPI due to the bankruptcy case. Non-advertisement revenues consisted primarily from Short Messaging Services, contents licensing, circulation revenues, studio rental, computer graphics, and talent management. Non advertisement revenue were relatively stable in FY 2009, due to the absence of popular TV viewer participation voting programs such as the Indonesian Idol and KDI, and stringent credit control over newspaper agencies has subsequently reduced circulation revenues.

Figure 1: Pendapatan/Revenues

EBITDA was down by 2% y-o-y and the EBITDA margin was relatively stable at around 20%, which was primarily due to TPI's less than optimal 4th quarter 2009 performance and the change in Global TV's strategy of expanding its targeted audience from children to young families and young professionals (please see figure 2).  The wider targeted segment of Global TV had resulted in higher program acquisition costs.  We regard the higher costs to acquire blockbuster movies as a short-term condition while in the long-term, Global TV’s revenues will accelerate faster due to a wider and much larger audience base.

Figure 2: EBITDA dan Laba Bersih / EBITDA and Net Income

“During the first two months of 2010, MNC has booked its historic performance.”

During the first two months of 2010, our 3 free-to-air (FTA) TVs have shown improvements in their audience shares, RCTI has consistently been in the number 1 position, with an average audience share of between 18%-20%, TPI's average audience share had increased to 11% from 9%.  And, Global TV's audience share had also increased to 8% from 6%.  The improvements in audience shares were also due to the improved coverage and reception qualities for both TPI and Global TV. MNC has focused its efforts in developing in-house programs and the strategy has proven to reap high returns. In-house programs are now a significant revenue driver for RCTI.  The advertising spending magnet in-house programs such as the reality show “The Masters” and “Dashyat” music programs were relatively less expensive to produce and have generated high ratings and high returns. In print media, our daily newspaper Seputar Indonesia has recorded its first positive EBITDA and operating income in FY2009 and continues to perform strongly during the first two months of 2010.

Having said all that, during the first two months of 2010, MNC had successfully surpassed its historic performance with 33% y-o-y increased in revenues to Rp 0.64 trillion, operating income grew by 217% y-o-y to Rp0.19 trillion, while EBITDA soared by 144% y-o-y to Rp 0.22 trillion and net income was up by 186% y-o-y to Rp0.12 trillion as compared to the same period last year (please see Figure 3). Moreover, the EBITDA margin has increased significantly to 34% as compared to 19% for the same period last year.

“On top of that, during the first two months of 2010, MNC has exceeded its budgeted numbers.”

On top of that, MNC has exceeded its budgeted numbers. Revenues were higher by 5% and operating income, EBITDA and net income were higher by 217%, 144% and 1,100% respectively. EBITDA margin was at 34%  also higher than the budgeted margin of 15% (please see Figure 4).

Figure 4:  Perbandingan kinerja 28 Februari 2010 actual versus Budget / Performance Comparison as of 28 February actual versus Budget

“With record breaking performance in the first two months of 2010 we firmly believe that MNC will deliver superior performance in FY2010” said Hary Tanoesoedibjo, Group President & CEO of PT Media Nusantara Citra Tbk

The first two months was an excellent start for 2010 and we believe  MNC will perform strongly throughout the year due to the following factors:

1. The Supreme Court’s ruling on March 26, 2010 to reaffirm its decision on December 15, 2009 to nullify the decision made by Central Jakarta Commercial Court, has ended any future attempt by Crown Capital Global Limited to file for the same legal proceedings against TPI. The Supreme Court’s ruling has restored the confidence of customers, advertisers, production houses and suppliers to intensify their business activities with TPI. Going forward, we firmly believe that TPI’s business activities will result in a much stronger overall performance. (MNC's Press Release dated 29th March 2010).

2. TPI and Global TV will reap the full benefit of their expanded target segments.

3. The new printing equipments for our print media should definitely enhance the printing quality and delivery time for our print media, particularly Seputar Indonesia and subsequently should be able to help generating higher revenues in 2010 and beyond.

4. We believe the acquisition of Letang Game Ltd at the start of 2010, will further strengthen Linktone's product offering as Letang’s online games have been ranked amongst the top 5 most popular games in China.   In addition, the purpose of acquisition of Innoform Media Pte Ltd, on 17th March 2010, whereby MNC together with Linktone has acquired a 75% shareholding, is to strengthen the content distribution and content aggregation of the MNC group in Asia.

5. Our high optimism for FY2010 is supported by the recovery in the global economy  with a projected growth rate of 3.9% (source: IMF) and a recent analysis from Zenith Optimedia (“Zenith”), which estimated that Indonesia's gross advertising spending will grow by 8.5% in FY2010 to reach approximately US$3.3 billion, a meager 0.5% of GDP, suggesting ample room for further growth.

With record breaking performance in the first two months of 2010 along with the favorable ending on TPI’s litigation case and the recent completed acquisitions, we firmly believe that MNC will deliver superior performance in FY2010” said Hary Tanoesoedibjo, Group President & CEO of PT Media Nusantara Citra Tbk.

About PT Media Nusantara Citra Tbk

MNC is the largest and only integrated media company in Indonesia with operations encompassing content production, content distribution, nationwide free-to-air television networks, 24-hour program TV channels, newspaper, tabloid, magazine, radio networks, online media, Value Added Services, advertising agency and talent management. MNC has the largest content library in Indonesia, comprising 88,000 hours of entertainment and news content, which is increasing by more than 10,000 hours yearly. These contents are being accumulated from in-house productions, acquired contents, and the operations of our multi-media platforms.

DISCLAIMER

By accepting this Press Release, you are agreeing to be bound by the restrictions set out below.  Any failure to comply with these restrictions may constitute a violation of applicable securities laws.

The information and opinions contained in this Press Release have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein.  It is not the intention to provide, and you may not rely on this Press Release as providing, a complete or comprehensive analysis of the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the company or its subsidiaries.  The information and opinions contained in this Press Release are provided as at the date of this presentation and are subject to change without notice.  Neither the company (including any of its affiliates, advisors and representatives) nor the underwriters (including any of their respective affiliates, advisors or representatives) shall have any responsibility or liability whatsoever (in negligence or otherwise) for the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising from any use of this presentation.

In addition, the information contained in this Press Release contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance.  These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the company and its directors.  No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct.  Actual results may differ materially from those forecasts and projected.

This Press Release is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. 

Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offer document issued in respect of such securities.