[Indonesia] Media
Media (Overweight) 2021F outlook: Adspend to recover
Mirae Asset Sekuritas Indonesia Christine Natasya [email protected]
The Ministry of We see a neutral impact from government’s intention to convert analog into digital TV Communication and Private television broadcasters have to comply with the government’s national plan to convert Informatics targets all analog television to digital television, as stipulated in the Omnibus Law or Job Creation Bill provinces to be digital-ready (RUU Ciptakerja). In Indonesia, the use of an analog system requires TV broadcasting to use by mid-2021 328 MHz out of the entire frequency capacity of 700 MHz. A digital dividend refers to the radio spectrum which is released in the process of digital television transition. After the government’s analog switch-off (ASO) plan is accomplished, there will be savings (the so-called digital dividend) of 112 MHz which can be used for the benefit of digital transformation. That migration of TV broadcasting begins with applying digital technology to the television broadcasting system through terrestrial transmission media, which is carried out gradually and ends with the termination of the use of analog technology in the nation-wide scope. MNCN is ready to face the digitalization era as it already has transmission, studio, and other facilities. Thus, the company might not need to incur additional costs. Meanwhile, SCMA needs a small investment as the company has digitized all of its studios, cameras, and libraries and needs to spend another USD10mn for wider coverage of the digital broadcasting. We think that the digitalization era only has a minor impact on existing FTA TV players. Looking ahead, new players will have to request for a license to operate a FTA TV channel.
Adspend to recover Low base of 2020; Expect a rebound in the economy in 2021F We expect the adspend growth to recover in 2021F, vs. 2020F, on the back of expectations on economic re-opening, return of sports live programmes on TV, and low base of 2020. Furthermore, the government has set the assumption of economic growth at around 5% for 2021, even though the COVID-19 pandemic will still be around. The Finance Minister, Sri Mulyani Indrawati, assessed that the trend of economic recovery will begin to show up in the fourth quarter of 2020. We predict GDP to reach 4.15% in 2021F.
Maintain Overweight stance Maintain sector call at Overweight on Media sector We maintain our Overweight view on Media sector. We believe the rock bottom of ad spend has passed, precisely in 2Q20. MNCN’s FY20F EBITDA may decelerate by 3.3% YoY, but it will grow by 8.8% YoY in 2021F, in our forecast. On the other hand, SCMA’s EBITDA will grow by 10.9% YoY in 2020F due to EBITDA margin expansion this year, given the efficiencies achieved by the company. Nonetheless, we forecast both of SCMA’s and MNCN’s revenue to rise by 8.4% and 10.1% YoY, respectively, in 2021F. Meanwhile, we forecast both SCMA’s and MNCN’s net profit in 2021F to increase by 10% and 27.4% YoY, respectively. We maintain our 2020F-2022F forecasts as we expect that a re-opening of economy on vaccine hopes in 2021 should underpin FMCG consumers’ purchasing power as well as ad spend recovery. Media companies will continue to focus on their digital content by strengthening their presence in the OTT market. Regarding FTA TVs, we think rate card hikes will resume in FY21F as we believe that an economic recovery will be the next key catalyst for the sector. The downside risk is a stringent PSBB, which should lead to further weakening of adspend.
Key investment metrics Target price P/E (x) P/B (x) ROE (%) ROA (%) Company Ticker Rating (IDR/share) FY20F FY21F FY20F FY21F FY20F FY21F FY20F FY21F Surya Citra Media SCMA Buy 2,100 18.5 16.8 3.6 3.0 21.8 19.5 16.4 15.3 Media Nusantara Citra MNCN Buy 1,130 5.9 4.7 0.9 0.8 13.7 14.9 9.4 10.9 Source: Mirae Asset Sekuritas Indonesia Research
PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. November 17, 2020 Media
CONTENTS
The Ministry of Communication and Informatics targets all provinces to be digital- ready by mid-2021 3 Transition into digital TV 3 Expecting digital dividend because digital TV needs less spectrum 6 More investment needed but insignificant for media companies’ balance sheets 6
Adspend to recover 7 Low base of 2020; Expect a rebound in the economy in 2021F 7
Everything increasingly going digital 9 MNCN’s AVOD business model: RCTI+ 9 SCMA more skewed towards SVOD business model 12
Recommendation 14 Maintain Overweight on the sector 14 Surya Citra Media 15 Media Nusantara Citra 18
Mirae Asset Sekuritas Indonesia Research 2 November 17, 2020 Media
The Ministry of Communication and Informatics targets all provinces to be digital-ready by mid- 2021
Transition into digital TV
Reasons behind government’s plan of the analog switch-off (ASO)
Private television broadcasters have to comply with the government’s national plan to convert analog television to digital television, as stipulated in the Omnibus Law or Job Creation Bill (RUU Ciptakerja). We believe there are several reasons behind the government’s intention to accelerate the implementation of digital television.
First of all, Indonesia is lagging behind regional peers in the digital migration. Malaysia and Singapore, for example, made television fully digital in 2019; meanwhile, Japan and South Korea finished their ASOs in 2011 and 2012, respectively. Switching to digital TV is necessary as the world is moving away from analog to digital broadcasting. Secondly, in terms of quality, digital TV broadcast offers more optimal picture quality.
Moreover, there is an added value from the frequency restructuring. Going digital will allow the government to free up frequency spectrum which can be used for higher quality and faster mobile services that ultimately benefit consumers.
Last but not least, the government may aim for more effectiveness of broadcasting industry. Despite its more positive value added to Indonesia’s employment in the long run due to usage of frequency, the digitalization of TV industry will eventually lead to equal distribution of content and media broadcast.
Figure 1. Section from Job Creation Bill
Source: RUU Ciptakerja, Mirae Asset Sekuritas Indonesia Research
Mirae Asset Sekuritas Indonesia Research 3 November 17, 2020 Media
What is digital TV?
The word “digital” refers to the way in which TV channels are broadcasted and received in population homes. A digital television transition, also called the analog switch-off (ASO) or the digital migration, is the process by which older analog television broadcasting technology is converted to and replaced by digital television.
That migration of TV broadcasting begins with applying digital technology to the television broadcasting system through terrestrial transmission media, which is carried out gradually and ends with the termination of the use of analog technology in the nation-wide scope.
The migration of terrestrial television broadcasting from analog technology to digital technology, as referred to in the Omnibus Law, Article 60 of the first paragraph, and the cessation of TV analog broadcast (analog switch-off) shall be completed no later than 2 (two) years from the commencement of the Act.
Members of the Indonesian Private Television Association (Asosiasi Televisi Swasta Indonesia/ATVSI) will have to prepare immediately to have this migration to digital TV (ASO) as it is mandated in the Omnibus Law, which has just been signed by our President.
Figure 2. Section from Job Creation Bill
Source: RUU Ciptakerja, Mirae Asset Sekuritas Indonesia Research
The above section from the Job Creation Bill basically states that:
TV broadcasting companies must follow technological development, which includes the broadcasting migration from analog to digital technology.
Migration of terrestrial television broadcast from analog technology to digital technology and the analog switch-off shall be completed within two years after the Law takes effect.
Additional arrangements for broadcast migration from analog technology to digital technology will be regulated by government regulations.
Mirae Asset Sekuritas Indonesia Research 4 November 17, 2020 Media
Indonesia to adopt the second generation of terrestrial digital video broadcasting standard
Referring to the Minister of Communication and Information’s Regulation No. 05 of 2012, Indonesia will adopt the second generation of terrestrial digital video broadcasting standard (DVB-T2), which is a development of the DVB-T digital standard, which was previously established in 2007. This means that when analog TV channels are switched off 2 years from the signing of RUU Ciptakerja (which is around October 2022), all TV channels will then broadcast in digital only by using the DVB-T2 television standard.
DVB-T2 stands for “Digital Video Broadcasting – Second Generation Terrestrial”, which is an extension of the television standard, DVB-T, created for the broadcast transmission of digital terrestrial television. DVB-T2 is adopted as the industry standard in key European and Asian countries. The device offers higher efficiency, robustness, and flexibility, enabling efficient use of valuable terrestrial spectrum for the delivery of audio, video and data services to fixed, portable, and mobile devices.
The Indonesian Private Television Association (Asosiasi Televisi Swasta Indonesia/ATVSI) reports that currently only 12 provinces in Indonesia have readily available digital infrastructure, while the remaining 22 provinces do not have a clear concept. Meanwhile, infrastructure development in 22 provinces is estimated to take 1-1.5 years.
Figure 3. DVB-T2
Source: Ali Express, Mirae Asset Sekuritas Indonesia Research
What consumers have to do
Meanwhile, all Indonesian households are encouraged to switch to digital TV to continue watching free-to-air (FTA) TV channels as the analog TV signals will be switched off around the fourth quarter of 2022. Consumers might need to connect their TV set to the right equipment to receive digital TV or Pay TV services. Although this might not be a hard situation for middle-upper income households, the majority of Indonesians, or about 70% of Indonesian citizens, still use analog television and watch FTA TV channels.
Analog-only TVs are incapable of receiving over-the-air broadcasts without the addition of a set-top converter box. Consequently, a digital converter box – an electronic device that connects to an analog television – must be used in order to allow the television to receive digital broadcasts. In Indonesia, the prices of STB ranges between IDR170k-IDR400k.
In the United States, the government subsidized the purchase of such boxes for consumers via their coupon-eligible converter box program in 2009, funded by a small part of the billions of dollars brought in by a spectrum auction. Meanwhile, in Indonesia, given the large number of low-income population, Indonesia’s Ministry of Communication plans to distribute c.6.7m digital TV set-top boxes (STB) to low-income families. These boxes are digital television broadcast receivers/converters that can be connected to an old television set. This STB equipment is needed so that all lower income population can enjoy digital broadcasts.
Mirae Asset Sekuritas Indonesia Research 5 November 17, 2020 Media
Expecting digital dividend because digital TV needs less spectrum
When television broadcasters switch from analog TV to digital-only platforms, part of the electromagnetic spectrum that has been used for broadcasting will be freed up because digital television needs less spectrum than that of the analog television. The location and size of digital dividend always vary across countries due to several factors, including geographical position and penetration of satellite/cable services.
In Indonesia, the use of an analog system requires TV broadcasting to use 328 MHz out of the entire frequency capacity of 700 MHz. A digital dividend refers to the radio spectrum which is released in the process of digital television transition. After the government’s analog switch-off (ASO) plan is accomplished, there will be savings (the so-called digital dividend) of 112 MHz which can be used for the benefit of digital transformation.
We expect the digital dividend to bring multiplier effects from the benefits arising from using digital technologies, namely economic growth, job creation, and the provision of financial and non-financial services. According to research by World Bank, universal connectivity remains a huge challenge and the development of analog complements is crucial to guarantee greater digital dividends, which will bring about long-term benefits, such as faster growth, more employment, and better services.
More investment needed but insignificant for media companies’ balance sheets
The benefits for customers if they switch to digital TV broadcast include: 1) More TV program selection; 2) better picture and sound quality of the TV; and, 3) flexibility in using both portable and mobile devices.
Meanwhile, the benefits obtained by the industry from broadcast digitization are as follows: 1) Cheaper channel prices in terms of maintenance costs; 2) potential new revenue stream from Pay TV services; 3) new transmitter network; and, 4) potential sales from STB devices (set top box).
MNCN is ready to face the digitalization era as it already has transmission, studio, and other facilities. Thus, the company might not need to incur additional costs. Meanwhile, SCMA only needs a small investment as the company has digitized all of its studios, cameras, and content libraries. SCMA currently broadcasts simultaneously to half of the country and needs to spend another USD10mn to cover the whole country. We then think that the digitalization era only has a minor impact on existing FTA TV players. Looking ahead, new players will have to request for a license to operate a FTA TV channel. Meanwhile, smaller local TVs have to pay for the excess frequency from big TV players, which we view as a neutral impact, despite the threat from equal distribution of content from local TV players.
Mirae Asset Sekuritas Indonesia Research 6 November 17, 2020 Media
Adspend to recover
Low base of 2020; Expect a rebound in the economy in 2021F
We expect the adspend growth to recover in 2021F, vs. 2020F, on the back of expectations on economic re-opening, return of sports live programmes on TV, and low base of 2020. Obviously, during the rising cases of coronavirus in Indonesia, out-of-home advertisement and cinemas have suffered the most from the government’s restrictions on movement and consumers’ avoidance of public places.
Despite the loosened large-scale social restrictions (Pembatasan Sosial Berskala Besar/PSBB), 3Q20 GDP contracted again, now by -3.49% YoY, which was partly due to another tight PSBB during September. Thus, Indonesia has officially entered an economic recession after booking negative GDP growth for two consecutive quarters (2Q20 GDP of - 5.32% YoY and 3Q20 GDP of -3.49% YoY), which is the first time for Indonesia to fall into an economic recession since the Asian Financial Crisis in 2008.
Despite the negative 3Q20 GDP growth on a YoY basis, Indonesia’s GDP grew on a QoQ basis, showing signs that the recovery is on track. In the current case, quarterly economic YoY growth is predicted to remain in the negative territory in the 4th quarter. Nonetheless, we project 2021 GDP to expand on the back of low base in 2020F. In addition to that, retail sales growth has shown a gradual improvement, albeit still contracting to date.
Figure 4. Indonesia’s GDP (YoY) Figure 5. Retail sales growth (YoY)
(% YoY) (% YoY) 10 30
8 25 20 6 15 4 10 2 5
0 0 -5 -2 -3.49 -10 -4 -15 -6 -5.32 -20 -8 -25 4Q01 4Q04 4Q07 4Q10 4Q13 4Q16 4Q19 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20
Source: Bloomberg, Mirae Asset Sekuritas Indonesia research Source: Bloomberg, Mirae Asset Sekuritas Indonesia research
Table 1. 2020-2021 GDP growth projection GDP growth (% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F QoQ) 1Q 0.64 0.80 0.49 0.04 -0.16 -0.36 -0.30 -0.41 -0.52 -2.41 1.47 2Q 3.86 3.96 4.00 3.83 3.74 4.01 4.01 4.21 4.20 -4.20 -1.29 3Q 3.61 3.35 3.28 3.27 3.31 3.13 3.19 3.09 3.06 5.05 4.31 4Q -2.18 -2.25 -2.18 -2.07 -1.73 -1.81 -1.70 -1.69 -1.74 0.03 0.26 Full-year 6.17 6.03 5.56 5.01 4.88 5.03 5.07 5.17 5.02 -1.96 4.15 growth (%) Source: Statistics Indonesia, Mirae Asset Sekuritas Indonesia Research Data for 4Q20 are Mirae Asset’s projection
Furthermore, the government has set the assumption of economic growth at around 5% for 2021, even though the COVID-19 pandemic will still be around. The Finance Minister, Sri Mulyani Indrawati, assessed that the trend of economic recovery will begin to show up in the fourth quarter of 2020. Regardless, the government will still carry out a number of strategies to achieve their growth target for next year. We ourselves predict GDP to reach 4.15% in 2021F.
Mirae Asset Sekuritas Indonesia Research 7 November 17, 2020 Media
Rebound in adspend seen in 2H20, albeit soft
According to Nielsen’s research, prior to 3Q20, total advertising spending in Indonesia has shown a rebound, after bottoming out due to tight PSBB in 2Q20. Despite another tight PSBB in mid-September, brand owners seem to have gained their confidence back on spending as Jakarta has entered the second phase of PSBB transitional period. In July, adspend increased by 17% MoM to IDR18.3tr. Total advertising expenditure in January-July 2020 reached IDR122tr, according to Nielsen Advertising Intelligence (Ad Intel). On the same positive note, we believe that November and December might also book a similar pattern to that of July when PSBB entered a transitional period for the first time. Heading into 2021, given more confidence on Indonesia’s economy, we believe that adspend would recover, partly due to low base in 2020.
Advertisers pulled back spending sharply when the scale of the coronavirus crisis became clear with the steepest declines taking place between March and May. These declines have started to ease and are expected to gradually moderate next year, especially in TV and digital platforms. Meanwhile, we forecast adspend in newspapers or magazines to continue decreasing next year. For example, Unilever’s (UNVR) adspend declined in 2Q20, but it has recovered in 3Q20.
Figure 6. Unilever’s (UNVR) ad spend Figure 7. Unilever’s (UNVR) promotion spend
(IDRbn) (IDRbn) 650 1,000
769 750 500 604
476 500
350 250
0 200 1Q20 2Q20 3Q20 1Q20 2Q20 3Q20
Source: Company data, Mirae Asset Sekuritas Indonesia research Source: Company data, Mirae Asset Sekuritas Indonesia research
Figure 8. UNVR’s ad spending and YoY growth
(IDRbn) UNVR ad spending (L) (%) YoY growth (R) 1,000 64
47.6 48 750 34.6 29.8 32
500 16
0 250 -6.1 -13.3-16 -19.3 -20.9
0 -32 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Source: Company data, Mirae Asset Sekuritas Indonesia research
Mirae Asset Sekuritas Indonesia Research 8 November 17, 2020 Media
Everything increasingly going digital
Research by Google-Temasek suggests that Southeast Asia’s digital economy will grow beyond USD240bn in 2025, and as the largest and fastest-growing market in the region, Indonesia will very likely be the growth driver. Together with the rise of e-commerce, data, and Internet penetration, especially during the COVID-19 pandemic, this has driven a rapid shift in media budgets from traditional to digital media, accelerating the trend that was already taking place.
In addition to that, digital ads benefit from the increase in screen time, and ad spends in this sector (including OTT, video, and other social media channels) will continue in 2021. Furthermore, looking at the global entertainment industry in mature markets (where Internet penetration is close to 100%), an inescapable trend is the rise of subscription- based, on-demand OTT platforms; these are apps that deliver video content through the Internet, rather than through cable or satellite TVs. These platforms, such as Netflix, nexGTv, and Amazon Prime, are getting more popular and have become the preferred entertainment channels for millennials as they allow instant streaming of videos on both mobile devices (smartphones and tablets) and TVs. In Indonesia, other than the existing foreign-owned OTT platforms , starting from September 2020, Disney+ Hotstar services are available on its official website or the Disney+ Hotstar app on Android and iOS. Despite this, we believe local contents are still the most favorite ones for Indonesians.
The two TV broadcast companies under our coverage, Media Nusantara Citra (MNCN) and Surya Citra Media (SCMA), have different strategies. MNCN employs an advertising video on demand (AVOD) business model. Meanwhile, SCMA runs a subscription video on demand (SVOD) business model for its digital OTT Vidio Premier, although SCMA also has the AVOD business model with Vidio.com.
MNCN’s AVOD business model: RCTI+
MNCN’s digital revenue growth has recorded double-digit growth over the past years, which we believe has triggered media companies, including MNCN itself, to expand even more into OTT platforms. The company launched its digital app platform, RCTI+, in 2H19.
Thanks to improved Internet connectivity (especially via mobile phones), coupled with more affordable data, we believe that the average smartphone users now consume more video streaming contents than ever. This presents a golden opportunity for RCTI+ to provide a significant new revenue stream and marks a shift in how Indonesian consumers discover and consume media. RCTI+ aims to become the largest streaming service that complements the company’s strong FTA TV position.
Apart from live-streaming its four FTAs, RCTI+ provides its users access to MNCN’s content library, catch up on TV features and original contents, such as bloopers, new or never-aired- before content, and behind-the-scenes, avail trending topics, news portals, and radio streaming, and enjoy other interactive features, like quizzes, voting, and live chat with MNC talents. Other features, such as user-generated content (UGC) for talent search competition content dedicated for RCTI+ and games aggregators, are currently under development.
Mirae Asset Sekuritas Indonesia Research 9 November 17, 2020 Media
Figure 9. RCTI+ mobile application
Source: RCTI+, Mirae Asset Sekuritas Indonesia
Using an advertising video on demand (AVOD) concept, MNCN’s RCTI+ works by building up mass traffic and monetizing it through advertisements.
RCTI+ producing original series recently
Recently, RCTI+ also created an original series titled Ada Dewa Disisiku (translated into “There’s a God by My Side”), and Sebelum Dunia Terbalik (translated into “Before the World’s Upside Down”). We believe that content costs for these original series are similar to FTA TV’s sinetrons. MNCN’s strategy is to release original series on the RCTI+ platform first and plans to air them on TV after several months, as well as uploading them to YouTube, in order to generate higher ROI.
Mirae Asset Sekuritas Indonesia Research 10 November 17, 2020 Media
Figure 10. RCTI+’s original series (Ada Dewa Disisiku) Figure 11. RCTI+’s original series (Sebelum Dunia Terbalik)
Source: RCTI+, Mirae Asset Sekuritas Research Source: RCTI+, Mirae Asset Sekuritas Research
Although we think that the company’s content costs are less than those of SCMA’s Vidio, PT MNC Studios International Tbk (MSIN) as the subsidiary of MNCN has signed a Memorandum of Understanding (MOU) with Chorokbaem Media Co Ltd (Chorokbaem), the biggest drama production house and one of the most reputable media companies in South Korea, to have a co-production of movies and TV series, cross-talent utilization on respective content production activities, cooperation on content production site in Indonesia and South Korea, content story adaptation, and other strategic collaboration and alliance that can escalate Indonesia’s and South Korea’s content industry, especially in Asia. We are still waiting for the breakdown of their content costs which haven’t been published. We think that the company’s AVOD strategy is currently more favorable in terms of ROI.
Mirae Asset Sekuritas Indonesia Research 11 November 17, 2020 Media
SCMA more skewed towards SVOD business model
Although the Indonesian market is still dominated by international and regional OTT SVOD providers (e.g. Netflix, iflix, and Viu), SCMA’s management believe that Vidio's large user base for its advertising video on demand (AVOD) services, combined with the uniqueness of its original local drama series and comprehensive sports programs, will position it among the top OTT SVOD service providers in Indonesia going forward. As SCMA is not paying dividend for 2020 and does not plan to pay out any dividend for the next 9 months, the company plans to do self-fundraising for Vidio.com in 2021 as the company sees higher growth in subscribers ahead of its peers (Netflix and Disney Plus) because Vidio offers local and sports contents. Even though it has spent some cash for buying back shares during August-October 2020 (SCMA bought back 600mn shares amounting to IDR750.3bn), as of 9M20, SCMA’s cash balance is still ample despite the recent buyback, standing at IDR801.7bn (vs. IDR701bn as of 1H20).
Vidio’s growing number of paid subscribers
As of today, Vidio has drawn around 950k subscribers (growing from below 400k in February). Vidio’s greater performance for this year (digital revenue losses declined in 9M20 to only -IDR68bn vs. -IDR142.7bn in 9M19) was basically supported by: 1) the rising number of premium paid subscribers recently when Champions League came back in and Vidio’s release of new drama series; and, 2) low content production cost on Vidio due to PSBB.
Figure 12. Champions League in 2019-2020
Source: Vidio.com, Mirae Asset Sekuritas Research
Figure 13. Some of Vidio’s movies and drama series
Source: Vidio.com, Mirae Asset Sekuritas Research
Mirae Asset Sekuritas Indonesia Research 12 November 17, 2020 Media
We expect SCMA’s Vidio SVOD business model to bear fruit going forward, especially if the number of subscribers stays on the rise. The company plans to eventually enter into a strategic partnership with an investor to fund the content production and seeks around USD300-400mn in the initial stage. Nonetheless, before it does so, SCMA desires to solidify its Vidio SVOD business model so as to attract the ideal partner and obtain the optimal valuation. Regardless, the expenses that will have to be incurred to achieve this vision will be a burden for SCMA’s digital business in the short period of time. However, the COVID-19 pandemic has partly supported the rising needs of Indonesians to consume more digital entertainment, as reflected form the rising number of Vidio Premier’s paid subscribers. While we expect the pandemic to be over in the future, we think the trend of going digital will be kind of permanent.
Mirae Asset Sekuritas Indonesia Research 13 November 17, 2020 Media
Recommendation
Maintain Overweight on the sector
We maintain our Overweight view on Media sector. We believe the rock bottom of ad spend has passed, precisely in 2Q20, which leads us to a conservative view on this year’s revenue and earnings.
MNCN’s FY20F EBITDA may decelerate by 3.3% YoY, but it will grow by 8.8% YoY in 2021F, in our forecast. On the other hand, SCMA’s EBITDA will grow by 10.9% YoY in 2020F due to EBITDA margin expansion this year, given the efficiencies achieved by the company. Nonetheless, we forecast both of SCMA’s and MNCN’s revenue to rise by 8.4% and 10.1% YoY, respectively, in 2021F. Meanwhile, we forecast both SCMA’s and MNCN’s net profit in 2021F to increase by 10% and 27.4% YoY, respectively.
We maintain our 2020F-2022F forecasts as we expect that a re-opening of economy on vaccine hopes in 2021 should underpin FMCG consumers’ purchasing power as well as ad spend recovery. Media companies will continue to focus on their digital content by strengthening their presence in the OTT market. Regarding FTA TVs, we think rate card hikes will resume in FY21F as we believe that an economic recovery will be the next key catalyst for the sector. The downside risk is a stringent PSBB, which should lead to further weakening of adspend.
Figure 14. MNCN forward P/E Band
( x )
34 +2 Std Dev
29
24 +1 Std Dev
19
Mean PER 14
9 -1 Std Dev
4 08/13 08/14 08/15 08/16 08/17 08/18 08/19 08/20
Source: Bloomberg, Mirae Asset Sekuritas Research
Figure 15. SCMA forward P/E Band
( x )
40 +2 Std Dev
35
+1 Std Dev 30
25 Mean PER 20
15 -1 Std Dev
10 -2 Std Dev 5
Source: Bloomberg, Mirae Asset Sekuritas Research
Mirae Asset Sekuritas Indonesia Research 14 [Indonesia] Media
Surya Citra Media Buy (SCMA IJ) (Maintain)
Vidio’s subscribers rising; Expect rebound in ad TP: 2,100 revenue Upside: 38.2%
Mirae Asset Sekuritas Indonesia Christine Natasya [email protected]
Rising number of subscribers Vidio still booking a net loss in 2021F but aiming for bigger subscriber number expected in 2021F, despite We believe that SCMA’s Vidio will still be seeing huge net losses in 2021F (even bigger than 2020F), incurring more cost for as this year, its content production is half of what will be done in 2021F. content production In 2021F, SCMA will produce drama around 3-4 drama series per month (vs. currently 2 drama series per month). A higher number of paid subscribers is expected in 2021F as Liga 1 will start in February, and this should lead to more direct subscriptions on Vidio rather than through telco bundles, which might increase Vidio’s average revenue per usage (ARPU). In addition, we believe that, given more content produced by Vidio, more subscribers are willing to pay for Premier content as Indonesian people love locally-produced series/movies.
Expect single-digit growth of SCMA’s revenue in FY20F to decline by 8-10% YoY but to rebound in 2021F and move into a revenue for 2021F (vs. positive territory negative growth in 2020F) Given the COVID-19 pandemic, many advertisers cut on ad spending to save expenses, due to slowing economic growth. Thus, SCMA’s revenue in 2020F deteriorated. Cumulatively in 9M20, revenue came in at IDR3.5tr (-13.5% YoY), with no rate card increase. We expect SCMA’s rate card increase to resume in 2021F. Our gross rate card assumption for SCMA in 2021F is 9%. We expect SCMA’s revenue to grow by 8.4% YoY in 2021F. Meanwhile, bottom-line margin would slightly improve to 23.9% (vs. 23.7% in 2020F) as we expect the company to be able to maintain programming costs during the expansion in TV revenue.
Maintain Buy Share buyback to continue; Expect better outcomes in 2021F recommendation SCMA will continue to do share buyback until December 8, 2020, amounting to IDR1.3tr. Total overall buyback allocation is maximum 20% of its total outstanding shares. As of October 31, 2020, SCMA has bought back 1.2bn shares (since December 2018), which represents almost 8.25% of the shares outstanding for a total sum of IDR1.3tr. We maintain our Buy recommendation on SCMA with TP of IDR2,100 as we expect a re-rating to its 10-year mean PE at 23.1x, due to better economic outlook for 2021F, and also a higher number of Vidio subscribers, which will attract a possible future strategic investor to invest in Vidio.
Key data (D-1yr=100) JCI SCMA Share Price (11/16/20, IDR) 1,520 Market Cap (IDRbn) 22,457.5 130 120 Consensus NP (21F, IDRbn) 1,270 Shares Outstanding (mn) 14,774.7 110 100 NP Mirae Asset vs. consensus (21F, %) 3.9 Free Float (%) 33.0
90 EPS Growth (21F, %) 9.8 Beta (Adjusted, 24M) 1.2 80 70 P/E (21F, x) 16.8 52-Week Low (IDR) 600 60 50 Industry P/E (Current, x) 12.9 52-Week High (IDR) 1,625 40 11/19 1/20 3/20 5/20 7/20 9/20 11/20 Benchmark P/E (21F, x) 14.2
Share performance Earnings and valuation metrics (%) 1M 6M 12M FY () 2016 2017 2018 2019 2020F 2021F Absolute 13.5 76.6 14.3 Revenue (IDRbn) 4,524.1 4,453.8 5,276.8 5,523.4 5,069.1 5,493.7 Relative 6.5 55.6 25.2 Gross Profit (IDRbn) 2,741.7 2,619.2 2,918.4 2,660.5 2,800.6 3,035.2 Operating Profit (IDRbn) 2,003.3 1,779.3 1,848.6 1,483.3 1,535.1 1,663.7 Net profit (IDRbn) 1,511.1 1,331.5 1,484.8 1,070.2 1,199.9 1,319.7 EPS (IDR) 103 91 102 73 82 90 BPS (IDR) 234 267 329 336 418 508 P/E (x) 14.7 16.7 15.0 20.8 18.5 16.8 P/B (x) 6.5 5.7 4.6 4.5 3.6 3.0 Dividend yield (%) 5.5 4.8 3.6 3.7 0.0 0.0 Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. November 17, 2020 Media
Figure 16. SCMA’s operating profit (quarterly) Figure 17. SCMA’s operating profit margin (quarterly)
(IDRbn) (%) 60
800
45 600 29.9
30 25.3 400
15 200
0 0 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20
Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates
Figure 18. SCMA’s net profit (quarterly) Figure 19. SCMA’s net profit margin (quarterly)
(IDRbn) (%) 600 45 38.5
33.4 30.9 31.1 30.2 400 30 25.2 25.4 25.6 22.5
200 15
4.6
0 0 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20
Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates
Figure 20. Vidio Premier’s packages
Source: Vidio, Mirae Asset Sekuritas Indonesia Research estimates
Mirae Asset Sekuritas Indonesia Research 16 November 17, 2020 Media
Surya Citra Media (SCMA IJ)
Income statement (summarized) Balance sheet (summarized) IDRbn 2018 2019 2020F 2021F IDRbn 2018 2019 2020F 2021F Revenue 5,277 5,523 5,069 5,494 Assets Programming expenses -2,358 -2,863 -2,268 -2,459 Cash and equivalents 994 545 1,610 2,783 Gross Profit 2,918 2,660 2,801 3,035 Receivables 1,690 1,781 1,789 1,938 Opex 0 0 0 0 Inventories 956 925 745 807 Operating Profit 1,849 1,483 1,535 1,664 Others 28 165 127 126 Other income/(expenses) 18 13 12 13 Fixed assets - net 1,071 1,502 1,759 1,834 Profit before income tax 1,859 1,373 1,436 1,538 Other non current asset 1,726 1,656 1,701 1,701 Income tax expenses -466 -401 -316 -308 Total assets 6,465 6,573 7,730 9,190 Minority interest 10 19 0 0 Liabilities and equity Net profit 1,485 1,070 1,200 1,310 ST bank loans and CM 0 0 0 0 EBITDA 2,013 1,660 1,841 1,753 Trade payables 380 407 310 337 Others current liabilities 524 570 507 525 Long term debt 16 12 23 24 Non-current liabilities 218 239 258 279 Total liabilities 1,139 1,228 1,097 1,165 Minority interests 645 580 669 741 Shareholders' equity 4,807 4,908 6,108 7,428
Cash flow statement (summarized) IDRbn 2018 2019 2020F 2021F Key ratios/growth metrics (%) 2018 2019 2020F 2021F CF from operation Leverage (X) Net profit 1,485 1,070 1,200 1,320 Current ratio 4.1 3.6 5.3 6.5 Depreciation/amortization 164 230 306 90 Quick ratio 3.1 2.7 4.4 5.6 Change in working capitals -205 -45 76 -181 Debt to equity 0.4% 0.2% 0.4% 0.3% Others 36 -102 -27 15 Net debt to equity Net cash Net cash Net cash Net cash CF from operation 1,480 1,154 1,555 1,243 Interest coverage 543.9 644.2 325.2 356.5 P/E ratio (x) 15.0 20.8 18.5 16.8 CF from Investments P/BV ratio (x) 4.6 4.5 3.6 3.0 Net capex -292 -503 -564 -166 Dividend yield 3.6% 3.7% 0.0% 0.0% Others 11 -172 -45 2 EV/EBITDA (x) 10.3 12.4 11.2 11.8 CF from investments -284 -590 -609 -164 EPS (IDR) 102 73 82 90 DPS (IDR) 55 56 0 0- CF from financing activity BPS (IDR) 329 336 418 508 Increase/(decrease) in debt -50 -5 12 1 Growth (%) Increase/(decrease) in equity 0 165 0 0 Revenue 18.5 4.7 -8.2 8.4 Dividend payments -804 -820 0 0 OP 3.9 -19.8 3.5 8.4 Others 419 -355 107 93 EBITDA 14.6 -17.5 10.9 -4.8 CF from financing activity -436 -1,016 119 94 Net profit 11.5 -27.9 12.1 10.0
Net changes in cash 760 -452 1,065 1,173 Non cash adjustment 0 3 0 0 Ending balance 994 545 1,610 2,783
Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates
Mirae Asset Sekuritas Indonesia Research 17 [Indonesia] Media
Media Nusantara Citra Buy (MNCN IJ) (Maintain)
Gradually paying off USD debt TP: IDR1,130 Upside: 28.4%
Mirae Asset Sekuritas Indonesia Christine Natasya [email protected]
Non-preemtive rights issue Proceeds from NPRI partly used to pay off USD debt (5.4% of MNCN’s total Year-to-date, MNCN has done a non-preemptive rights issue amounting to IDR1.174tr or outstanding shares) finally done equivalent to 5.4% of MNCN’s total outstanding shares. The company’s initial plan is to do a rights issue of up to1.14bn new shares or 8% of the total outstanding shares. This means that MNCN can do another rights issue for 2.6% of total outstanding shares at most in mid 2021F. According to MNCN’s Investor Relations, in 2021, the company will retire the treasury stocks equivalent to the number of shares for which the company has done the rights issuance. As a note, MNCN owns treasury stocks of 1.89bn shares The proceeds from the NPRI will partly be used to pay off MNCN’s long-term USD debt, which we expect should deduct around USD100mn from its total outstanding of USD191.2mn as of 1H20. We believe this would positively impact the company’s bottom line due to reduced f/x volatility as well as interest expense.
Better adpsend in 2H20 vs. 1H20; Adspend recovers in 2H20 vs. 1H20, expected to continue improvement to continue next MNCN believes that the overall adspend has improved in 3Q20 and expect the trend to year continue in 4Q20. We believe that this recovery trend will stay in 2021F as we expect an economic recovery. According to the company, net rate card increase for FY20F is around 1-2% YoY. The company believes that rate card improvement for 2021F will be better than 2020F, while occupancy rate should also improve along with rising ad demand from customers.
Maintain Buy recommendation Valuation remains attractive We maintain our Buy recommendation with an unchanged TP of IDR1,130. At IDR880, the company is trading at an undemanding valuation of 4.7x 2021F P/E. Other than improved FTA TV revenue, we also believe that MNCN’s digital platform will keep performing very well in 2020F going forward, supported by its Over-the-top (OTT) platform, RCTI+, which has been booking higher Monthly Active User (MAU). According to the company, to date, its MAU has reached 30mn. The company expects its digital revenue to contribute a bigger proportion of 35% in 2020F (vs. around 31% in 1H20 and 29.2% in FY19).
Key data (D-1yr=100) JCI MNCN Share Price (11/16/20, IDR) 880 Market Cap (IDRbn) 13,243.8 130 120 Consensus NP (21F, IDRbn) 2,300 Shares Outstanding (mn) 15,049.8 110 100 NP Mirae Asset vs. consensus (21F, %) 1.7 Free Float (%) 62.2 90 EPS Growth (21F, %) 26.8 Beta (Adjusted, 24M) 1.2 80 70 P/E (21F, x) 4.7 52-Week Low (IDR) 695 60 50 Industry P/E (Current, x) 12.9 52-Week High (IDR) 1,780 40 11/19 1/20 3/20 5/20 7/20 9/20 11/20 Benchmark P/E (21F, x) 14.2
Share performance Earnings and valuation metrics (%) 1M 6M 12M FY () 2016 2017 2018 2019 2020F 2021F Absolute 8.7 -2.8 -37.9 Revenue (IDRbn) 6,730.3 7,052.7 7,443.9 8,353.4 8,372.0 9,214.1 Relative 1.7 -23.8 -27.1 Gross Profit (IDRbn) 3,855.5 4,382.2 4,618.9 5,322.9 5,196.3 5,719.0 Operating Profit (IDRbn) 2,331.9 2,665.8 2,739.8 3,259.0 3,056.0 3,363.4 Net profit (IDRbn) 1,368.7 1,453.3 1,531.4 2,233.3 1,847.9 2,339.0 EPS (IDR) 102 111 123 180 149 189 BPS (IDR) 654 670 732 863 977 1,131 P/E (x) 8.7 7.9 7.2 4.9 5.9 4.7 P/B (x) 1.4 1.3 1.2 1.0 0.9 0.8 Dividend yield (%) 4.9 5.2 1.9 2.0 - - Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. November 17, 2020 Media
Figure 21. Quarterly operating profit & OPM Figure 22. Quarterly net profit & NPM
(IDRbn) (%) (IDRbn) (%) Operating Profit OPM Net profit NPM 1,250.0 45.0 750.0 45.0 38.6 33.0 1,000.0 500.0 30.0 32.9 30.0 750.0
250.0 15.0 500.0 15.0 0.0 0.0 250.0 -5.1
0.0 0.0 -250.0 -15.0 1Q15 2Q16 3Q17 4Q18 1Q20 1Q15 2Q16 3Q17 4Q18 1Q20
Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Company data, Mirae Asset Sekuritas Indonesia Research
Figure 23. MNCN’s best programs
Source: Company data, Mirae Asset Sekuritas Indonesia Research
Figure 24. Revenue breakdown by quarter
Others Content Digital Advertisement from TV
100% 15% 18% 17% 16% 18% 15% 16% 18% 20% 20% 75% 10%
50% 82% 76% 70% 73% 25%
0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Source: Company data, Mirae Asset Sekuritas Indonesia Research
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Media Nusantara Citra (MNCN IJ)
Income statement (summarized) Balance sheet (summarized) IDRbn 2018 2019 2020F 2021F IDRbn 2018 2019 2020F 2021F Revenue 7,444 8,353 8,372 9,214 Assets Program and content expenses -2,825 -3,030 -3,176 -3,495 Cash 720 631 1,804 2,522 Gross Profit 4,619 5,323 5,196 5,719 Receivables 2,786 2,917 2,858 3,145 Opex -1,879 -2,064 -2,140 -2,356 Inventories 2,757 2,794 2,909 3,201 Operating Profit 2,740 3,259 3,056 3,363 Others 808 1,040 910 1,009 Other income/(expenses) -636 -320 -627 -329 Total current assets 7,337 7,637 8,753 10,142 Profit before income tax 2,104 2,939 2,429 3,035 Fixed assets - net 5,542 5,682 6,078 6,300 Income tax expenses -498 -587 -461 -577 Long term investments 901 1,870 1,870 1,870 Minority interest -74 -119 -119 -119 Others 2,093 2,210 2,184 2,212 Net profit 1,531 2,233 1,848 2,339 Total non-current assets 9,003 10,200 10,569 10,819 EBITDA 3,126 3,650 3,531 3,843 Total assets 16,340 17,836 19,322 20,961 Liabilities and equity ST bank loans and CM 1,387 1,656 1,656 1,656 Trade payables 312 205 271 298 Others current liabilities 455 279 407 435 Total current liabilities 2,154 2,139 2,333 2,389 Long term debt 3,241 2,877 2,627 2,127 Others 303 294 300 303 Total non-current liabilities 3,544 3,171 2,928 2,430 Total liabilities 5,697 5,311 5,261 4,819 Minority interests 777 896 896 896 Shareholders' equity 9,866 11,630 13,165 15,246
Cash flow statement (summarized) Key valuation metrics/ratios IDRbn 2018 2019 2020F 2021F 2018 2019 2020F 2021F CF from operation Leverage (X) Net profit 1,531 2,233 1,848 2,339 Current ratio 3.4 3.6 3.9 4.5 Depreciation/amortization 386 391 475 480 Quick ratio 1.8 1.8 2.2 2.7 Change in working capitals -577 -276 11 -553 Debt to equity 0.5 0.4 0.3 0.2 Others -193 -408 258 -70 Net debt to equity 0.4 0.3 0.1 0.0 CF from operation 1,148 1,941 2,591 2,196 Interest coverage 7.8 7.5 7.1 8.1 CF from Investments P/E ratio (x) 7.2 4.9 5.9 4.6 Net capex -591 -520 -888 -693 P/BV ratio (x) 1.2 1.0 0.9 0.7 Others -429 -1,057 27 -29 Dividend yield 1.9% 2.0% 0.0% 0.0% CF from investments -1,020 -1,577 -862 -722 EV/EBITDA (x) 4.4 3.8 3.9 3.6 CF from financing activity EPS (IDR) 123 180 149 190 Increase/(decrease) in debt 810 -95 -250 -500 DPS (IDR) 17 17 - - Increase/(decrease) in equity -94 0 0 0 BPS (IDR) 732 863 1,000 1,175 Dividend payments -209 -214 -312 -258 Growth (%) 2018 2019 2020F 2021F Others -412 -149 6 3 Revenue 5.5 12.2 0.2 10.1 CF from financing activity 94 -458 -556 -756 EBITDA 0.9 16.8 -3.3 8.8 Net changes in cash 222 -94 1,173 718 Net profit 5.4 45.8 -17.3 27.4 Beg cash balance 469 720 631 1,804 Non-cash adjustment 29 4 0 0 Ending cash 720 631 1,804 2,522
Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates
Mirae Asset Sekuritas Indonesia Research 20 November 17, 2020 Media
APPENDIX 1
Important Disclosures & Disclaimers 2-Year Rating and Target Price History
Company (Code) Date Rating Target Price Company (Code) Date Rating Target Price SCMA IJ 11/6/2020 Buy 2,100 12/6/2018 Hold 2,100 8/4/2020 Trading Buy 1,440 MNCN IJ 7/1/2020 Buy 1,130 7/1/2020 Trading Buy 1,370 4/28/2020 Hold 940 5/10/2020 Hold 810 3/17/2020 Hold 970 5/7/2020 Trading Buy 950 12/19/2019 Buy 2,250 3/10/2020 Trading Buy 1,100 7/26/2019 Trading Buy 1,700 12/16/2019 Trading Buy 1,650 6/26/2019 Buy 1,500 11/6/2019 Hold 1,250 4/26/2019 Trading Buy 1,100 8/6/2019 Hold 1,450 2/28/2019 Hold 940 4/5/2019 Hold 1,750
(IDR) SCMA Analyst's TP (IDR) MNCN Analyst's TP 2,500 2,500
2,000 2,000
1,500 1,500
1,000 1,000
500 500 Nov-18 Nov-19 Nov-20 Nov-18 Nov-19 Nov-20
Stock Ratings Industry Ratings Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening Sell : Relative performance of -10% Ratings and Target Price History (Share price (─), Target price (▬), Not covered (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆)) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at PT Mirae Asset Sekuritas Indonesia, we may call a trading opportunity in case there is a technical or short-term material development. * The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings. * The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.
Equity Ratings Distribution Buy Trading Buy Hold Sell Equity Ratings Distribution 44.68% 31.91% 19.15% 4.26% * Based on recommendations in the last 12-months (as of September 30, 2020)
Disclosures As of the publication date, PT Mirae Asset Sekuritas Indonesia and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.
Analyst Certification Opinions expressed in this publication about the subject securities and companies accurately reflect the personal views of the Analysts primarily responsible for this report. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report but, like all employees of PT Mirae Asset Sekuritas Indonesia, the Analysts receive compensation that is impacted by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or PT Mirae Asset Sekuritas Indonesia except as otherwise stated herein.
Disclaimers This report is published by PT Mirae Asset Sekuritas Indonesia (“Mirae Asset”), a broker-dealer registered in the Republic of Indonesia and a member of the Indonesia Exchange. Information and opinions contained herein have been compiled from sources believed to be reliable and in good faith, but such information has not been independently verified and Mirae Asset makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Bahasa Indonesia. If this report is an English translation of a report prepared in the Indonesian language, the original Indonesian language report may have been made available to investors in advance of this report. Mirae Asset, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising from the use hereof. This report is for general information purposes only and it is not and should not be construed as an offer or a
Mirae Asset Sekuritas Indonesia Research 21 November 17, 2020 Media
solicitation of an offer to effect transactions in any securities or other financial instruments. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject Mirae Asset and its affiliates to registration or licensing requirements in any jurisdiction should receive or make any use hereof. Information and opinions contained herein are subject to change without notice and no part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset. Mirae Asset, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. The price and value of the investments referred to in this report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur.
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Mirae Asset Daewoo International Network
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