SCMA - Earmarks IDR350 bn in capex for 2023

Surya Citra Media (SCMA) has earmarked IDR350 bn for 2023's capital expenditure that includes broadcast infrastructure improvement in several provinces, new tower transmission construction in Surabaya and broadcast studio construction in Sentul, W. Java. Following analog switch off, the company has attempted to seize momentum by launching Mentari TV aiming for mom and kids’ segment. Amid the lift of covid-19 restriction, SCMA expects that ads revenue growth to improve. In addition, management is also committed to further develop Vidio.com platform which recorded a 60 million in monthly active users. (Source : Bisnis Indonesia) Comment: While analog switch off program would briefly become a risk for TV stations, we think that digital broadcasts may change competition landscape, given the emergence of smaller and more segmented TV. stations. The company's move to expand into segmented stations such as Mentari TV, Moji TV could be viewed as anticipation of growing trend for such demand. In addition, the expansion on Vidio platform is necessary move to cater high demand in video streaming in line with shifting trend in media consumption.