PT MEDIA NUSANTARA CITRA TBK (“MNCN”) BUSINESS UPDATE

Jakarta, Indonesia – 28 October 2019

MNCN ANNOUNCES Q3-2019 RESULTS, RECORDED 63% INCREASE IN NET

INCOME FOR 9M-2019

Summary of Q3-2019 Results:

 PT Media Nusantara Citra Tbk (“MNCN” or “The Company”) has posted a net revenue of
Rp2,019 billion in Q3-2019, an increase of 10% YoY from the previous year at Rp1,840
billion.

 Advertising revenue for Q3-2019 booked a significant increase of 10% YoY to Rp2,003
billion from last year of Rp1,817 billion.
o Advertising revenue growth was made possible due to the contribution by digital
ads, which surged by 509% YoY from Rp29.2 billion to Rp177.8 billion in the same
period. The strong increase in digital ads were mainly attributed to the newly
introduced RCTI+, web portals, VAS, and digital broadcast, which includes
YouTube and mobile apps earnings.
o Non-digital advertising revenue was up by 2% to Rp1,825 billion from Rp1,788
billion in Q3-2019. The modest growth in non-digital ads was caused by the slower
pick up on advertising post-election and post-ramadhan in early Q3-2019.

 The Company’s content revenue was recorded at Rp379.3 billion in Q3-2019, representing
13% growth YoY from Rp334.5 billion in 2018. Kindly note that this is before elimination.
Content revenue managed to improve significantly due to expansion in MNCN in-house
production, in particular drama content, digital content production, and monetization of our
content library to various OTT platforms.

 Other revenue decreased slightly by 2% from Rp27.2 billion to Rp26.7 billion in Q3-2019.
The majority of this non-core revenue is mainly attributed by the Company’s talent
management unit, which is part of MNCN strategy to control production cost.

 In Q3-2019, elimination rose by 15% to Rp390 billion from Rp338.3 billion in Q3-2018, this
was caused by an increase in in-house production volume in drama series and FTV
content for RCTI and MNCTV.

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 The Company’s Q3-2019 EBITDA increased by 14% to Rp889.1 billion from Rp781.1
billion in the same prior year period, this represents a 44% EBITDA margin in 2019
compared to 42% in 2018. EBITDA margin expansion occurs as a result of an improved
efficiency after the 3 FTA operations (RCTI, MNCTV dan GTV) housed under the same
management. Furthermore, despite the launch of RCTI+ and MCN in August 2019, G&A
expenses were up by only 7%.

 Net income increased by 43% YoY in Q3-2019, MNCN secured Rp555.8 billion in net profit
compared to Rp388.2 billion in the previous year, representing a net income margin of
28% as opposed to 21% in the same prior year period.

Summary of 9M-2019 Results:

 For 9M-2019, MNCN booked a revenue of Rp6,271 billion an impressive 13% YoY growth
from Rp5,530 billion in 2018.

 Advertising revenue in 9M-2019 went up by 13% YoY to Rp6,036 billion.

o Digital ads increased significantly by 371% YoY to Rp503 billion from Rp107 billion.
The Company has managed its digital expansion successfully in 2019, and
targeting both digital and content revenue to represent at least 25% of total revenue
in 2019.
o Non-digital ads also improved by 5% YoY to Rp5,533 billion from Rp5,254 billion
in the same period last year. Non-digital ads will still stay strong due to the
Company’s continued implementation of various creative advertising, such as built-
in, virtual ads and sponsorship of big programs such as talent search, awards and
concerts, which MNCN can monetize fully since all of its production is done in-
house.

 Content revenue in 9M-2019 has also increased significantly to Rp1,292 billion before
elimination representing an astonishing 18% growth YoY from 2018. This was a result of
the increase in drama related content production, which represents 41% of the nation’s
drama production output. Library licensing and digital content production also proved to
be a growing factor in the Company’s content revenue.

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 Other revenue decreased by 58% in 9M-2019 to Rp81.5 billion from Rp192.9 billion in the
same prior year period. Non-core business, which consists of radio, print, and talent
management represents a small portion of the Company activities. Koran Sindo
(newspaper) has reduced its paper-based circulation and migrates to sindonews.com,
which is now ranked #6 website by Alexa.

 Gross profit for 9M-2019 grew by 18% to Rp3,884 billion from Rp3,281 billion last year,
this represents 62% gross profit margin as opposed to 59% gross profit margin in 9M-
2018. The improvement in gross profit margin was due to the small increase in
programming cost of only 7% as a result of the reduction in foreign content purchased.

 In 9M-2019, EBITDA grew strongly by 20% to Rp2,798 billion from Rp2,330 billion last
year, this represents 45% EBITDA margin for 9M-2019 as opposed to 42% EBITDA
margin in 2018. EBITDA margin expands as a result of the FTA operations synergies.

 Net income increased by 63% YoY in 9M-2019, MNCN secured Rp1,776 billion in net profit
compared to Rp1,091 billion in the previous year, representing a significant improvement
in net income margin of 28% from 20% in the same prior year period. Net income margin
expansion was also made possible due to a better tax planning by the Company. Effective
tax rate for 9M-2019 was recorded at 20% from 23% in 2018.

Business Update 9M-2019:

 Moving forward into Q4-2019, MNCN will continue its successful programming line-up with
various content, as follows:
o RCTI: Indonesian Idol (weekly), Konser Padi, AFC U19, AMI Awards, Sea games,
Master chef Indonesia, Billboard Music Awards, and Publicity Stunt Magician.
o GTV: The Great Magician, Bedah Rumah Special Episode ke 500, and Studio
Impian.
o MNCTV: Anugrah Dangdut, SEA Games, Road to Kilau Raya, Kilau DMD, and
Dangdut In (Off/On Air).

 MNCN’s production market share for numeorus in-house programming genres remain
strong with 41% for drama, more than 80% for talent search, and more than 80% for
animation. Moreover, drama and talent search format generates the highest revenue per
hour of broadcast.

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 The Company’s YouTube performance has remain to be the biggest in Indonesia, both in
terms of number of subscribers and number of views. As of September 2019, MNCN’s
YouTube channels has garnered over 47 million subscribers and 21 billion views.

 Upon officially operating as an MCN (Multi-Channel Network) in August, the Company’s

MCN has surged to reach 13.1 million subscribers and 1.78 billion views in only 2 months.

 The newly introduced RCTI+, which was launched on 23 August 2019, has reached 3
million MAU as of today and MNCN is targeting 10 million MAU by the end of 2019.

Comments from Hary Tanoesoedibjo, Group Chairman of MNC Group:

“We are excited and optimistic with the Company’s existing strategy. Our non-digital ads are
supported by NTC (built-in and virtual), we are able to do this because almost all of our local
programs are produced in-house. Digital ads will also be pushed through RCTI+, targeting at
least 10 million MAU by the end of the year, 30 million MAU by the end of next year, capitalizing
on the high traffic by offering premium FTA content. Digital ads will also be pushed through
mobile broadcast and portals, and equally important through YouTube and MCN, targeting to
reach a total of 25 billion views with 52 million subscribers by 2019.

Lastly, content is the key differentiator in today’s media landscape, being the biggest content
producer in Indonesia, the Company is in a position to reap all the available market
opportunities through library licensing, production of digital content as well as the production
of quality drama series and big programs such as talent search, awards, and music concerts
and using our state-of-the-art facilities.”

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Table 1. Summary of Key Financial Performance 9M-2019
Income Statements Actual Variance Actual Variance
In IDR mio 9M-2019 9M-2018 YoY Q3-2019 Q3-2018 YoY
Revenues 6.271.085 5.530.036 13% 2.019.116 1.840.492 10%
Advertisement 6.036.006 5.360.684 13% 2.003.262 1.817.074 10%
Digital 502.995 106.825 371% 177.780 29.199 509%
Non-digital 5.533.011 5.253.859 5% 1.825.482 1.787.875 2%
Content 1.292.132 1.095.447 18% 379.234 334.544 13%
Others 81.458 192.871 -58% 26.706 27.221 -2%
(Elimination) (1.138.511) (1.118.966) (390.086) (338.347)

Direct Cost *) 2.242.300 2.105.033 7% 754.716 708.923 6%

Depr & amort in Direct Cost 145.041 143.798 1% 53.629 50.063 7%

Gross profit 3.883.744 3.281.205 18% 1.210.771 1.081.506 12%

Gross profit margin 62% 59% 60% 59%

General & Administrative expense *) 1.230.652 1.095.296 12% 375.255 350.471 7%

Depreciation and amortization 194.314 194.814 0% 67.270 57.389 17%

EBITDA 2.798.133 2.329.707 20% 889.145 781.098 14%

EBITDA Margin 45% 42% 44% 42%

Net Income 1.775.643 1.091.261 63% 555.780 388.198 43%

Net income margin 28% 20% 28% 21%
*) : excluding depreciation and amortization

Table 2. Upcoming Notable Programs in Q4-2019

Table 3. Top Drama Series September 2019

No Program Title Channel TVR Share

1 TOP TUKANG OJEK PENGKOLAN RCTI 4,0 16,8
2 CINTA KARENA CINTA SCTV 3,6 14,9
3 CINTA ANAK MUDA SCTV 3,2 13,9
4 DUNIA TERBALIK RCTI 2,6 16,4
5 ANAK LANGIT SCTV 2,3 14,7
6 RINDU TANPA CINTA RCTI 2,3 10,8
7 KEMBALINYA RADEN KIAN SANTANG MNCTV 2,2 9,2
8 ORANG KETIGA SCTV 2,2 13,5
9 PENGANTIN DINI ANTV 2,0 9,0
10 FATIH DI KAMPUNG JAWARA 2 MNCTV 1,9 7,8

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Table 4. Total Prime – Time Audience Share (9/10/19)

RCTI MNCTV GTV iNEWS TOTAL

22,3 11,8 7,7 1,7 43,5

For more information, please contact:

Investor Relations: PT Media Nusantara Citra Tbk.

Luthan Fadel Putra MNC Tower, 29th floor
luthan.putra@mncgroup.com Jl. Kebon Sirih Kav 17 - 19
Jakarta 10340
Samuel Christhopher Hartono Phone: 62-21 3913338
samuel.tanoesoedibjo@mncgroup.com Fax : 62-21 3910454

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