KEY HIGHLIGHTS
- 1H26 revenue +6.7% YoY to IDR 3.55Tn; 2Q26 +6.2% YoY to IDR 1.68Tn, with the segment note doing all the explaining: Digital swung to a IDR 40Bn profit from a IDR 113Bn loss (+IDR 153Bn) on revenue +12.4%, while TV & other multimedia profit fell 31.6% to IDR 192Bn on flat revenue (-0.4%), margin -8.8pp to 19.3%. Content +84.9%, marketing +9.5%. By type, gross advertising -5.3%, other revenue +31.4%.
- 2Q26 profit from operations +43.9% YoY to IDR 277Bn (16.5% margin), but ~70% of the gain is not operating: other operating income swung +IDR 60Bn (to +IDR 41Bn from -IDR 19Bn), mostly unrealised FX on an unhedged USD book that SCMA books above the operating line — IDR weakened 5.1% in 2Q26 vs +2.1% in 2Q25. Ex those items, core operating profit only +9.4% to IDR 247Bn (+0.4pp margin). Content cost +7.9% ran ahead of revenue.
- 2Q26 PATMI +37.0% YoY to IDR 229Bn; 1H26 +67.3% to IDR 536Bn (EPS IDR 8.45 vs 5.05). Group profit +113.9% overstates it — NCI swung IDR 77Bn (Vidio, 20.6% minority, no ownership change). Note a new IDR 750Bn 1-yr unsecured UOB facility at INDONIA+130bp (12 Jun) funded a USD 34.7mn dollar fund — the source of the FX gain. FY25 DPS IDR 21.00 ≈ 172% payout; finance income -52.6% to IDR 29Bn; still net cash ~IDR 1.40Tn.
- Key takeaway: the Digital turn is real, but the TV franchise is where the durable problem sits. A 31.6% fall in segment profit on flat revenue is structural; the group beat is part currency, part minority arithmetic. No Bloomberg FY26 forecast exists for SCMA. At 13.4x LTM P/E vs a 21.3x 2-year mean (-1.0 SD) valuation is undemanding, though the band is wide (7.9x SD) and the trailing base distorted. Key watch: whether TV segment margin stabilises and Digital profitability holds without the FX tailwind.
Regards, Aldiracita Research
