Indonesia Media, Investment Paid Off Handsomely

Trans Corp, according to Nielsen data, was the top gainer in all time audience shares in September (+4% MoM to 17.1%) due to its Trans7 station, which managed to improve the group’s performance. Surya Citra’s audience share rose 2% MoM to 29.2%, supported by Indosiar’s new TV and sports shows like Bintang Pantura, Piala Presiden and the Barclays Premier League. MNC was the only one that booked lower audience share (-4% MoM to 32.6%) due to a lack of new programmes. We maintain our BUY call on Surya Citra with TP of IDR3,300 and NEUTRAL call on Media Nusantara with TP of IDR2,100.

Improvement in all time audience shares by Surya Citra Media (Surya Citra) (SCMA IJ, BUY, TP: IDR3,300) and Trans Corp
The two companies successfully improved their all time audience share ratings in September. Surya Citra’s share grew 2% MoM to 29.2% while Trans Corp’s share rose 4% MoM to 17.1%. Audience share improvements were attributed to new TV series and shows introduced. Media Nusantara Citra (MNC) (MNCN IJ, NEUTRAL, TP: IDR2,100) failed to improve on its performance during this time.

MNC’s all time audience share fell by 4% MoM to 32.6% – we suspect its absence of new programmes led to the slowdown. The company has been re-running old TV series like Preman Pensiun rather than investing in new programmes. The Bakrie Group’s Visi Media Asia’s (Visi Media) (VIVA IJ, NR) all time audience share was flat MoM at 16.8%.

Successful new programmes take Indosiar to the prime time top spot
Indosiar introduced Bintang Pantura as a second line-up for D’Academy. With this new show, the station has managed to take Surya Citra to top spot in terms of prime time audience share – growing 6% MoM to 12.2%. At the same time, the group’s Suria Citra Televisi (SCTV) station’s share grew 2% MoM to 17.8%, due to the Pangeran sinetrons that were well accepted by viewers.

In September, MNC’s prime time audience share slipped again, down 5% MoM to 33.7%. Rajawali Citra Televisi Indonesia’s (RCTI) and Global TV’s prime time audience shares fell the most in this month, by 3%/10% to 17.6%/6.4% respectively. We believe that SCTV and Indosiar have successfully taken audience share from these two stations.

Trans7 is the gainer in terms of non-prime time audience share
Trans7 was once again the top gainer in terms of non-prime time audience share, up 4% MoM to 9.3%
This improvement was backed by its MotoGP TV broadcasts. Indosiar continues to support Surya Citra’s non-prime time audience share, which grew 4% MoM to 11.7% during this timeframe. This rise was backed by the popularity of sport programmes like Piala Presiden and the Barclays Premier League.

Positive impact to Surya Citra
The improvement in the Surya Citra’s audience share performance could lead to a better ad revenue performance in 2H15. While, the sluggish performance of Media Nusantara’s audience share could lead to a muted ad revenue in 2H15.