MNC Vision's Profit, A Company Owned By Conglomerate Hary Tanoesoedibjo Soars 148 Percent In The First Quarter Of 2021

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - PT MNC Vision Networks Tbk (IPTV) recorded performance growth in the first three months of this year. The company's profit and revenue from the MNC Group increased significantly in the first quarter of 2021.

MNC Vision recorded an increase in net profit of 148 percent in the first quarter of 2021 or IDR 101.3 billion compared to IDR 40.8 billion in the same quarter of the previous year. Net profit margin also increased to 10 percent compared to 5 percent in the same period in the previous year.

IPTV President Director Ade Tjendra said the performance achieved by MVN was very satisfying. Various initiatives that have been implemented this year have proven to be effective and can be reflected in the company's performance.

"Therefore, we can conclude that MVN is in the right position to adapt and be able to dominate the market regardless of the current state of the COVID-19 pandemic", he said in a written statement, quoted on Sunday, July 11.

MNC Vision posted consolidated revenues of IDR 1.03 trillion in the first quarter of 2021. This achievement increased by 23 percent compared to the previous year of IDR 842 billion.

Satellite service revenues, which include the company's two DTH units, namely MNC Vision (postpaid) and K-Vision (prepaid), increased by 3 percent to IDR 668.9 billion compared to IDR 651.5 billion in the first quarter of 2020.

The increase in satellite service revenue was due to the strong acquisition of K-Vision subscribers throughout the year reaching up to 1.3 million new subscribers, and supported by the success in selling top-up vouchers of IDR 49.6 billion in the first quarter of 2021.

Revenue from digital, IPTV, and broadband services from the digital, IPTV, and broadband service segments experienced significant growth to IDR 327.2 billion compared to the previous IDR 160.2 billion or representing 104 percent of the achievement in the first quarter of 2020.

The COVID-19 pandemic has changed people's behavior, which happened because of the social restrictions imposed on the community. This causes the demand for entertainment and broadband services to increase, which is reflected in the performance of MNC Play (broadband and IPTV) and Vision+ (OTT Video Service).

As of the end of the first quarter of 2021, MNC Play subscribers have reached 301.000 with 1.5 million home passes, which is also supported by the effectiveness of leasing network capacity from third parties. In addition, Vision+ is also increasing the number of in-house productions of original content.

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By the end of the first quarter of 2021, Vision+ subscribers had reached 1.8 million with 39.7 million Monthly Active Users (MAU). In the first quarter of 2021, IPTV direct expenses increased by 31 percent to IDR 570.6 billion compared to IDR 436.2 billion in the same period last year.

This is in line with the growth rate of Vision+, which continues to improve its UI/UX and continues to increase its content production through the original series. Gross profit experienced significant growth of 42 percent to IDR 236.1 billion from IDR 166.6 billion in the same period last year.

IPTV's gross profit margin also increased to 23 percent compared to the previous year of 20 percent.

EBITDA increased by 13 percent to IDR 404.6 billion from IDR 357.6 billion in the same period the previous year. However, the EBITDA margin recorded a slight decline, from 42 percent to 39 percent in the first quarter of 2021.