PT MD Pictures Tbk (FILM) posted sales growth of 107.7% or Rp61 billion in the first quarter of this year compared to the same period last year of Rp29.4 billion.

The main contributor to this growth was from the film category with a contribution of 90.7% of total revenue, equivalent to Rp55.3 billion or an increase of 196.4% compared to the same period the previous year Rp18.7 billion.

Revenue from the film category included revenue from digital, cinema, and television. Other revenue contributors consist of building rental and shooting equipment rental.

As part of MD Pictures' pivot strategy, there was a rapid growth in sales in the digital sector of 19,762.5% compared to the previous year, from Rp300 million to Rp51.04 billion in the first quarter of 2021.

Digital sales accounted for 92.3% of total film sales and 88.7% of total sales.

In line with the new normal due to the pandemic, sales of television programs have doubled while sales of cinema films are still relatively low.

"The positive performance this quarter is the result of FILM's quick response to adapting to the COVID-19 pandemic in early 2020 through the implementation of a pivot strategy where we enter the market and new forms of entertainment content. This challenge is an opportunity for us where there is a golden opportunity in times of anxiety, "said FILM President Director Manoj Punjabi through an official statement, Monday (19/4).

This rapid growth in sales was supported by a decrease in the cost of goods sold by 10.9% from a year earlier to Rp27.3 billion. Operating expenses also decreased by 29.4% to Rp17 billion compared to a year earlier from Rp24.1 billion.

Overall, sales growth and lower operating expenses allowed MD Pictures to drastically improve its performance from a net loss of Rp7.5 billion a year earlier to a net profit of Rp17.3 billion in the first quarter of 2021.

"Our strategy change to become an online entertainment producer has made FILM not only survive in the market but also succeed in drastically improving performance. MD Pictures' long history in producing original films and series and a variety of successful franchises, allows us to make a quick transformation and implement a new revenue model that will generate a much higher net profit in the first quarter of 2021, " Manoj explained.

The company continued to manage a healthy balance sheet, with asset growth of 3.0% compared to the end of 2020, to Rp1.4 trillion as of March 31, 2021.