MNC Group Lacks Corporate Acts: Analyst

TEMPO.CO, Jakarta - Indonesia's multimedia giant Media Nusantara Citra (MNC) Group posted a positive performance in the third quarter 2014. However, analyst considers the media conglomerate to lack corporate actions.

David Cornelis, chief researcher at KSK Finansial, said MNC needs to increase conduct more corporate action to trigger growth, both organic and inorganic. He said that out of MNC's seven subsidiaries listed on the Indonesian Stock Exchange (IDX), only three are in demand by investors.

The three companies are MNC Investama (BHIT), Global Mediacom (BMTR), and Media Nusantara Citra (MNCN). Yesterday, BHIT was transacted for Rp338 per share while BMTR is in a short-term uptrend with the potential to remain flat at Rp2,000 per share. Meanwhile, MNCN is relatively illiquid and is on an uptrend since January, with a target price of Rp2,960 per share.

Meanwhile, the remaining four subsidiaries are having performance declines. They are MNC Kapital Indonesia (BCAP), Indonesia Air Transport (IATA), MNC Land (KPIG), and MNC Sky Vision (MSKY).

In the third quarter of 2014, Global Mediacom posted a net profit of Rp690 billion. Meanwhile, Media Nusantara booked a net profit of Rp1.38 trillion.

According to CEO and President Director of MNC Group, Hary Tanoesoedibjo, Global Mediacom posted a nine-percent revenue increase to Rp8 trillion while Media Nusantara's revenue grew six percent to Rp5.04 trillion.

The revenue increases are contributed by increases in advertising revenues, customer-based media, as well as media and online-based games. 

FAIZ NASHRILLAH | DINI PRAMITA