JAKARTA – PT Surya Citra Media Tbk (SCMA), the operator of SCTV, portions IDR 250 billion for its capital expenditure (CapEx) this year.
Sutanto Hartono, the President Director of SCMA, mentions that an IDR 150 billion of CapEx would be allotted to regular needs, while the remaining amount would be used in the analogue to the digital television migration process. “The funds come from operational cash. There is no dividend distribution, generating a decently healthy cash flow within the company,” Hartono explains, as quoted from the public expose, Wednesday (9/6).
According to Hartono, the company’s strategy to enter digital television promises many prospects. However, the role of conventional television is still dominating the company’s business. By migrating to the digital premise, Hartono foresees the public’s euphoria. High definition transmission quality grants a more comfortable viewing experience.
Digital television is considered to coincide with several established subsidiaries within the content field. This condition is expected to drive the company’s revenue from commercials.
In Q1 2021, SCMA records a 7.6% growth in its revenue, reaching IDR 1.4 trillion from IDR 1.3 trillion in Q1 2020. The profit is reported at IDR 349.07 billion, increasing 6.4% from IDR 328.12 billion in Q1 2020. (LK/ZH)