Weak quarter amid lack of movies releases. FILM reported 3Q25 revenue of IDR 102bn (-44.0% QoQ; -21.9% YoY), mainly caused by sharp slowdown in cinema segment (-78.8% QoQ; -73.1% YoY) due to fewer theatrical releases and softer admissions across local box office. In contrast, digital revenues continued to gain traction, rising +16.1% QoQ and +64.0% YoY to IDR 55.3bn, reflecting the segment’s rapid expansion amid deeper partnerships with OTT platforms, including Netflix. Cumulatively, 9M25 revenues reached IDR 406.4bn (+16.8% YoY), broadly in line with both our and consensus forecasts (SSI: 64.7%; Cons: 63.5%). Profitability weakened, with gross profit declining -64.0% QoQ to IDR 40bn, translating to GPM of 39.5% (vs. 61.4% in 2Q25 and 65.3% in 3Q24). As a result, FILM remained in the red, booking net loss of IDR 26.6bn, though slightly narrower than 2Q25’s net loss of IDR 32.4bn.

 

Broadcasting losses narrowed on MDTV's early signs of recovery. In 3Q25, the broadcasting segment remained the main drag on FILM’s performance, accounting for nearly 90% of the company’s total net loss and pulling 9M25 EBIT down to -IDR 37bn (vs. IDR 73bn excluding MDTV losses). However, signs of a turnaround have emerged with MDTV climbing into the top 10 of Indonesia’s most-watched TV stations, improving significantly from its previous 16th position on the back of early results from its content and audience repositioning strategy. This progress lays solid foundation for potential FY26F breakeven, paving the way for FILM's positioning to achieve net-loss-free operations. Additionally, broadcasting operating expenses dropped sharply to IDR 42bn (2Q25: IDR 33bn; 3Q24: IDR 0bn), underscoring FILM’s ongoing efficiency measures in managing the segment.

 

BUY on: 21% upside, expected earnings turnaround & debt-free status. We revised our 2025F earnings to IDR 57bn net loss (prev.: IDR 20bn) due to longer-than-expected recovery in MDTV’s financial performance. However, we maintain more optimistic view on longer term earnings (Fig. 4), supported by several key catalysts: (1) synergy realization with SBS, the second-largest South Korean broadcaster; (2) upcoming launch of MD Now, FILM’s in-house OTT platform, expected to unlock greater IP monetization potential; (3) earnings turnaround in broadcasting business, and (4) 2026F debt-free position to support bottom line. Thus, we reiterate our BUY rating on FILM with DCF-based TP of IDR 7,000/share, implying +21% upside from current levels. Key risks include delayed NETV turnaround and fewer blockbuster releases.