by Credit Suisse Securities
S&P raised MNCN’s long-term debt rating to BB- from B+ with stable outlook. The upgrade is based on MNCN’s improved financial performance in 1Q11, sound prospects for advertising spending and firm national economic growth potential. MNCN, through its three television subsidiary – MNC TV, RCTI and Global TV – commanded stable 37% market share per March 2011.
Sales commentary: Indonesia ’s 1Q11 ad spending went up 20% YoY to Rp15.6 tn, according to AC Nielsen. With the emergence of the middle class, as GDP /capita reached US$3,000, ad spending in Indonesia will continue to be robust. In 1Q11, ad spend was 62% spent on TVs and 35% broad sheet newspapers. MNCN is trading at 13x consensus 2011 PE with 22% average EPS growth in 2011-2013.