MNCN 3Q18: below on forex losses
MNCN posted 3Q18 revenue of IDR353bn (-2.7% QoQ but +1.7% YoY), which translates to 9M18 earnings of IDR989bn (-11.8% YoY). This was above our expectation but below consensus on the back of forex losses.
3Q18 revenue came in at IDR1.8tn (-11.8% QoQ but +4.8% YoY), bringing 9M18 top line to reach IDR5.5tn (+2.8% YoY). This was in line with our and consensus. Aside from seasonality, we suspect the soft revenue growth was due to the flat rate card.
EBIT reached IDR674bn (-14.7% QoQ & -5.7% YoY), bringing EBIT to reach IDR2tn (+1.5% YoY). This was also in-line with our and consensus’. 3Q18 EBIT margin came in at 36.6% vs 2Q18: 37.8%.
On the balance sheet, MNCN manages to maintain their net gearing below 40%.
Our last call is a BUY with TP of IDR1,050
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