MD Entertainment Profit Corrected 63.30%

MD Entertainment Profit Corrected 63.30%

Friday, 11 Apr 2025

Throughout 2024, PT MD Entertainment Tbk (FILM) posted a net profit attributable to owners of the parent entity of IDR 35.46 billion or a sharp correction of 63.30% compared to the same period the previous year of IDR 96.63 billion. The information was conveyed by the company in a financial report published in Jakarta yesterday.

The company explained that the decline was triggered by higher growth in cost of revenue and operating expenses, compared to revenue. FILM's revenue last year increased to IDR 455.94 billion in 2024, compared to the same period the previous year of IDR 369.54 billion. Gross profit also increased from IDR 230.07 billion to IDR 274.80 billion.

The main factor that put pressure on last year's profit was the rapid increase in the company's operating expenses from IDR 118.26 billion in 2023 to IDR 206.80 billion. As a result, operating profit eroded from IDR 111.81 billion to IDR 67.99 billion.

MD Entertainment (FILM) also recorded an increase in other expenses. This caused the company's net profit to drop drastically from IDR 95.27 billion to IDR 20.55 billion. Meanwhile, earnings per share dropped drastically from IDR 10.16 to IDR 3.70 per share. Previously, Morgan Stanley & Co International PLc released 188.75 million FILM shares. The foreign investment company raised IDR 226.50 billion from the release of these shares.

FILM Corsec, Fadel Ramadhia explained that the 188.75 million FILM shares were released at an exercise price of IDR 1,200 per share on January 15, 2025. "The number of shares released is equivalent to 1.91%, so the sale reduced the number of FILM shares owned by Morgan Stanley from 13.41% to 11.51%. Meanwhile, the purpose of the transaction is for investment," he wrote in the official explanation.

Morgan Stanley's FILM stock sale has been going on for the past two months. In December 2024, the British investment company released 62.91 million FILM shares on December 24, 2024 with a transaction value of Rp 75.24 billion.