rating is based on the time of broadcasting, program competition, and TV stations that broadcasting. Still-weak sector pulse. Adex growth is likely to stay subdued this year as the GDP growth momentum kicks down a notch. In fact, the recovery of advertising spending may lag behind other sectors given the high elasticity of adspend. Fortunately, election campaign spending will cushion it from a steep fall. Comparison Local and Import Content
Investment Research Challenge Student Research 04 December 2009 STERN RESEARCH7 • The right for broadcast FIFA World Cup 2010 in Indonesia has not been determined. It is a challenge to SCM as one of the largest TV broadcasting in Indonesia. Since the program was a largest program which includes most of all the countries in the world, all the TV broadcasting want to get this opportunity to raise the rating. Financial Analysis SCMA’s Financial position in 1H09 drop on low revenue, and also give a lower margin profit on 1H08. We predict the declining are caused by issue of financial and non financial issue. SCMA give indicator that they revenue decline 9% that 2008. Our projection gives the conclusion that SCAM will generate they revenue for year ahead better than 2009. Year-end 31-Dec2008A2009E2010E2011E2012E2013ERevenue (in Million Rp)1,723,945.51,568,790.41,694,293.61,779,008.31,841,273.61,933,337.3Net profit (in Million Rp)207,960.5156,641.3189,499.9214,801.1224,584.6263,326.7EPS109.982.599.5112.7117.9138.2EPS Growth63.8%-25.0%20.6%13.4%4.6%17.3%Devidend payout ratio71.8%33.0%53.1%49.7%45.9%51.4%Return on asset 8.95%7.10%7.96%8.75%8.81%9.79%Return on equity 15.34%11.81%13.27%14.73%14.79%16.70%Curent ratio3.183.453.433.333.363.17Debt to Equity0.710.660.670.680.680.71Debt to Assets41.6%39.9%40.0%40.6%40.5%41.4%Gross profit margin48.9%48.9%50.3%51.2%51.5%52.4%Operating profit margin26.6%23.7%26.3%27.7%28.0%29.4%Net Profit Margin12.1%10.0%11.2%12.1%12.2%13.6%Key Financial and Valuation MetricsEarnings SCM’s revenue is mainly generated just from advertising (approximately 100% of revenue) which has growth 14% YoY in 2006, 9% YoY in 2007, 32% YoY in 2008. Operating profit is growing significantly from 6% in 2006 to 46% in 2007 and became 43% in 2008. Its position outlook is still bright for years ahead, even though in 2009 the revenue predicted to be decline about 9 % than 2008. But, SCM’s profit still estimated to be growing for years ahead. Net profit margins are predicted at 10.0% in 2009, 11.2% in 2010,12.1% in 2011, 12.2% in 2012 and 13.6% in 2013. SCMA have potential source to increase their investment to obtain their fund needed with increase the level of return on equity. SCMA still have big opportunity to develop their key support to the expectation is the ability to SCM to adopt new technology, improve human resource as the source of power in creative industry and also from increasing of public appreciation for entertainment and information sector. Balance Sheet In 2008, debt to assets ratio of SCM is 0.41 and it expected to be reducing in years ahead. SCM increase the number capital in 2008 is favorable to IPO than issue debt. But actually investment in media industry almost of operation does by using current liabilities from producer of programming. SCM’s applied collaboration strategy to increase the capital and increase the number of outstanding share with create any policy such giving option to employee by issued ESOP.