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Company Reports

31 October 2024

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FILM: 3Q24 Results – BUY, SSI TP: IDR 7,000

Our take on the results (SSI: In-line)

  • FILM delivered solid 9M24 earnings of IDR 103 bn (+19.1% YoY; in line with our estimate) on the back of strong cinema sales and stable margins. Despite 3Q24 earnings decline of -64.5% QoQ due to high-base effect, FILM posted robust 3Q24 EBIT of IDR 45 bn (+91.9% YoY) with operating margin expansion to 34.4% (+790 bps YoY) on lower production costs.
  • In terms of box office success, four of FILM's movies surpassed the 1-million-viewer mark in 9M24 with combined viewers of 11.4 mn, boosting the company’s 9M24 cinema sales to IDR 259.9 bn (+102% YoY). The top two movie grossers were Badarawuhi di Desa Penari (4.1mn) and Ipar Adalah Maut (4.0mn), and we expect more blockbusters from FILM in 4Q24 and 2025F given ramp-up production efforts.
  • Recent 81% stake acquisition of NETV, funded with combination of NPRs and cash, should continue to provide positive catalysts for FILM’s growth, allowing entry into the cash-generating FTA business, with the goal of raising NETV’s audience share.
  • Further corporate expansions to be funded through 2nd NPR amounting to IDR 3 tn by end-2024; thus, FILM remains a BUY with TP of IDR 7,000 (DCF-based), particularly given its YTD market underperformance.

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