MNC Vision Networks to acquire stake in competitor to boost profit

11 October 2019 14:44

JAKARTA. MNC Group member company PT MNC Vision Networks Tbk (IPTV) continues to explore the growth of its fixed broadband business by acquiring shares in a competitor.

Mirae Asset Sekuritas equity research analyst Christine Natasya said a number of IPTV's business lines have enough room for development, such as MNC Play which has 262,000 customers with 1.5 million homepasses in nine major cities.

"The relatively low penetration of fixed broadband (only 14% in 2019) gives MNC Play plenty of room to develop and expand its fixed broadband business," said Ms Natasya in a statement.

IPTV has not given a detailed explanation regarding its acquisition plan, which is currently in due diligence. If the plan goes through, said Ms Natasya, the company will be able to sell around 4 million homepasses. "Thus, IPTV can expect its revenue to double with a net profit margin increase from 5% to 15% by 2020," she said. (KR/MS)

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