Message from President Director

Dear Shareholders,

Year 2015 is a volatile year for the Indonesian economy. The economic growth slowed to 4.8%, its lowest point since 2009, while consumer confidence wavered and investors pulled their funds from capital market. In September, the Rupiah touched a 17-year low amid major concerns related to the depreciation of the Chinese Yuan and a potential US interest rate hike. A variety of different economic sectors were hit, from FMCG to property to manufacturing, with digital and telecommunication sectors among notable exceptions. Amid these conditions, the advertising climate was adversely impacted, with the TV ad market contracting by 2.7% overall.

Amidst these conditions, MDIA successfully maintained stable revenue, with revenue growth of 1.5% to reach IDR 1,385.9 billion and net income of IDR 256.7 billion. The main driver was the strong performance of ANTV, which despite the challenging environment was able to maintain strong ratings. Its audience share improved slightly from 11.2% to 11.4% in 2015, supported by its dynamic and entertaining programs and content.

These impressive achievements were achieved in the midst of soft world advertising climate and the lack of big sporting event such as FIFA World Cup 2014 Brasil™ which boosted the rating, share and revenue of ANTV in 2014. However, ANTV still managed to engage and entertain its audience through interesting contents and dynamic programming. ANTV’s rapid and consistent improvement in rankings since transformation in third quarterly of 2013 is proof that we are on the right track with our focus on family, children and entertainment content with female audiences as our main target.

Key to these improvements is ANTV’s ability to continually refresh and create exciting and innovative programming that can dynamically engage audiences in an increasingly competitive market. In 2015, ANTV continued this pattern of dynamic entertainment in 2015 with yet another breakthrough, by adjusting its programming to provide more global entertainment content geared at women. ANTV was especially strong in Indian and Turkish series, where it dominated the top 10 slots. ANTV thus solidified its position as a leader and trendsetter in Indonesia entertainment, airing 16 programs of the top 20 global drama series in the industry during 2015.

Supporting its performance, ANTV implemented VIVA Group’s 360 Degree concept in 2015. Under this concept, viewers are able to access dynamic and entertaining ANTV content not only through Free-to-Air TV but also through online streaming as well as mobile. ANTV also made effective use of its social media reach and social media popularity, with several ANTV programs becoming trending topics including HUT ANTV 2016: 1001 Kisah ANTV which became the number 1 trending topic in Indonesia during the program broadcast. In addition, ANTV also leveraged social media to get feedback from its loyal audiences and promote its on air as well as off air programs, to deliver a new experience to viewers.

ANTV further leveraged the success of its global programs by utilizing the key actors of popular foreign drama series in local drama productions such as Cinta di Langit Taj Mahal, which showcased Shaheer Sheikh as the main character from popular serial Mahabharata together with Indonesian artists, Nabila Shakieb and Evan Sanders. This drama series went on to become the #1 ranked drama series in its time slot with a (3.2) TVR for females age 25-34 (Nielsen, 8 June - 4 October 2015, TA: Female 25-34).

The steps that ANTV has made have also been recognized by the market. Since its IPO in April 2014, MDIA share value has increased 141% from IDR 1,380 per share to IDR 3,325 per share at the end of 2015, indicating positive investor confidence in ANTV’s financial and operational performance. In addition, MDIA was awarded “Indonesia Fastest Growing Issuers 2015” for the advertising, printing and media category.

In order to support and maintain ANTV’s performance in its evolution to become a Tier 1 FTA TV station, over the last two years its human resources have undergone extensive training and competency development in a variety of areas, ranging from creative content to technical aspects to sales and quality control. Reflecting the implementation of solid business processes, in 2015 ANTV successfully maintained its ISO 9001:2008 international quality management system certification.

Building and reinforcing its brand image, ANTV proactively engaged with its audience through both programming and corporate social responsibility (CSR) activities. ANTV also held the Ngobrol Bareng ANTV program in many university campuses around the country, to discuss careers opportunities in the world of television, as well as providing free medical treatment and other community assistance during the year.

On behalf of the Board of Directors I would like to convey my gratitude to the Board of Commissioners, our esteemed shareholders, and all the employees who have worked so hard in 2015 to keep ANTV on the leading edge. Finally, our deepest thanks go out to all of our loyal viewers who have continued to support MDIA and ANTV as their entertainment channel of choice.



ERICK THOHIR

President Director