Examining The Performance Of Media Companies Owned By Conglomerate Hary Tanoesoedibjo Vs. Eddy Koesnadi Sariaatmadja, Who Will Be More Cuan?

Conglomerate Hary Tanoesoedibjo. (Photo: Instagram @hary.tanoesoedibjo)

JAKARTA - The performance of issuers of the media, whether owned by conglomerates Hary Tanoesoedibjo and Eddy Kusnadi Sariaatmadja, is interesting to observe. The reason is, it is common knowledge, that the names of the two richest people in Indonesia are market share leaders in the media sector.

Hary Tanoe is the big boss at MNC Group, while Eddy Kusnadi Sariaatmadja is the leader at Emtek Group. Recently, the Emtek Group and the MNC Group have both received a breath of fresh air of positive sentiment for the company's financial performance and shares. Anything?

Emtek Group through PT Elang Mahkota Tbk (EMTK) has won the 2022 World Cup broadcast group. They have prepared 7 platforms to broadcast all World Cup matches.

Meanwhile, some of them are under the management of PT Surya Citra Media Tbk (SCMA) which is a subsidiary of Emtek. Mirae Sekuritas analyst Christine Natasya said that although the cost to obtain a broadcasting license was not disclosed, she thought it would be allocated through the EMTK or SCMA media business.

Historically, this is not the first time SCMA has broadcast a World Cup event on their TV channel. FIFA also sold the rights to broadcast the 2006 FIFA World Cup to SCTV with details of 64 matches including 56 live broadcasts and 8 recorded group stage matches.

"We think holding the World Cup license will definitely attract more subscribers to Vidio Premier SCMA as well as a higher share of TV viewership, so expect higher revenue," Christine said in her research.

He predicts the broadcast rights will range from US$10 million to US$30 million. The costs are considered hefty because the company's margins are at risk of decline given that many fast moving consumer goods (FMCG) struggle to keep up with their expenses.

According to Statista data, FIFA's revenue from licensing has increased significantly since 2016 due to increased broadcast deals. Thus, he believes the EMTK group will also pay double compared to 2006.

Under these conditions, he predicts flat income in the fourth quarter of 2022, with GPM at 53.2 percent.

"We increased SCMA's revenue forecast for 2022 by 3 per cent, but reduced our profit forecast by 6.3 per cent due to the new broadcasting rights the group has acquired," he said.

On the other hand, the promising prospects in terms of advertising spending can also be seen from last year's achievements. Based on Nielsen's annual report, advertising spending throughout 2021 grew 13 percent from the previous year.

Meanwhile, total advertising spending for television, digital channels, print media and radio reached Rp259 trillion (based on gross rate card calculations). Television is still the advertising channel of choice for brand owners with 78.2 percent of total advertising spending, followed by digital channels (15.9 percent), print media (5.5 percent), and radio (0.4 percent).

MNC Group 'skyrocketed' thanks to advertising

Meanwhile, the issuer of media conglomerate Hary Tanoesoedibjo, PT Media Nusantara Citra Tbk (MNCN), posted advertising revenue of Rp6.74 trillion in January-September 2021, up 22.06 percent compared to the previous year of Rp5.52 trillion.

From the bottom line, MNCN's net profit also rose 22.24 percent from Rp1.35 trillion to Rp1.65 trillion. In a performance report released by management in mid-January 2022, MNCN recorded the highest record in audience share in prime-time slots on average 2021 at 52.2 percent based on data research and Nielsen analysis.

In 2022, the company plans to further monetize its internal content through creative advertising by increasing the broadcasting of local as opposed to foreign broadcast content to close to a 90 percent : 10 percent ratio compared to the previous 80 percent : 20 percent in 2021.

"I believe 2022 will be a year like no other for the group because we have decided to consolidate MNC Media's digital assets under MSIN," said Executive Chairman of MNC Group Hary Tanoesoedibjo some time ago.