JAKARTA - Conglomerate Hary Tanoesoedibjo's company PT Media Nusantara Citra Tbk (MNCN) recorded a decrease in revenue and net profit in 2022.
In the company's financial report quoted Monday, March 27, MNCN recorded a 9 percent decrease in revenue to Rp9.06 trillion from Rp10.01 trillion in the previous year due to the dim decline in traditional advertising spending throughout 2022.
The management of Media Nusantara Citra said the decline in revenue was carried out by the implementation of Analog Switch Off (ASO) in the Jabodetabek area in the fourth quarter of 2022, which resulted in many advertisers holding back their marketing spending, especially on FTA TVs representing most of MNCN's revenue of around 58 percent in 2022.
MNCN posted ad revenue of IDR 7.82 trillion, down 15 percent on an annual basis from IDR 9.20 billion in 2021.
"Despite the turbulence in advertising spending faced by the Company's traditional media, digital advertising growth has managed to support the overall decline in MNCN's advertising revenue," explained MNCN management.
Although traditional advertising spending has decreased, MNCN recorded an increase in digital advertising by 25.24 percent to IDR 2.53 trillion throughout 2022 compared to the previous year which was recorded at IDR 2.02 trillion.
Then, MNCN's direct expenses were recorded at IDR 3.62 trillion. This figure is down 8.12 percent compared to the previous year which was recorded at IDR 3.94 trillion.
MNCN management explained that the decrease in burden was due to increased efficiency from two studio facilities, as well as the start of part of content production in Movieland. In addition, the direct loss of load was also due to a decrease in the 3rd party license agreement with foreign content studios, which increased the portion of local content to 90 percent.
As a result, MNCN's net profit was also observed at IDR 2.05 trillion, down 14.22 percent compared to the same period the previous year which was recorded at IDR 2.39 trillion. MNCN's EBITDA in 2022 was recorded at IDR 3.72 trillion, down 11 percent compared to the previous year.
Then, the company's liabilities were recorded at IDR 2.51 trillion, with details of short-term liabilities of IDR 2.05 trillion and long-term liabilities of IDR 454.35 billion. Meanwhile, equity was recorded at IDR 19.90 trillion.
MNCN also posted asset growth of 7.42 percent to IDR 22.42 trillion compared to the previous year which was recorded at IDR 20.87 trillion.
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