(TIS) - The following is a statement from Moody's Investors Service.

Moody's: MNC Sky Vision's 1H results in line with expectations

Hong Kong, August 02, 2013 -- Moody's Investors Service says that the operating results of MNC Sky Vision for 1H 2013 were broadly in line with expectations, and continue to support its B2 rating and positive outlook.

MNC Sky Vision's revenue for 1H 2013 grew 31% year-on-year and its unadjusted EBITDA increased by 30%, owing to strong subscriber growth of 43% and stable average revenue per user (ARPU) of IDR118,000 per month.

"The company's subscribers surpassed 2 million for the first time, reflecting its solid organic growth and the underpenetrated Pay TV market in Indonesia," says Annalisa Di Chiara, a Moody's Vice President and Senior Analyst.

In addition, MNC Sky Vision's unadjusted EBITDA margin for 2Q 2013 improved to 41% from 38% in 1Q 2013. Moody's expects the company to maintain EBITDA margin at above 40% over the next two years.

On the other hand, Moody's also expects the company to generate negative free cash flow for full-year 2013 owing to its high capex requirements to support subscriber growth.

Moreover, MNC Sky Vision does not maintain any long-term undrawn credit facilities -- a credit negative -- and will therefore need to rely on external financing to support this growth. It had IDR 125million of cash on its balance sheet as of 30 June 2013.

"Nonetheless, we note that PT Global Mediacom Tbk, MNC Sky Vision's majority shareholder, has a solid liquidity position and has the ability to provide support to the company in case of need," Di Chiara says.

The positive rating outlook reflects Moody's expectation that MNC Sky Vision's leading market share and product offerings will continue to support significant organic growth over the next 12-18 months, and help keep EBITDA margins above 40%.

The principal methodology used in this rating/analysis was the Global Pay Television - Cable and Direct-to-Home Satellite Operators Industry Methodology published in April 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Headquartered in Jakarta, MNC Sky Vision is a provider of direct-to-home, Pay TV services. The company is 66% owned by PT Global Mediacom Tbk, a diversified media company, and in which PT Bhakti Investama Tbk owns a 53.4% stake. Both Global Mediacom and Bhakti Investama are publicly listed in Indonesia.