Advertising revenues of TVN’s main channel for May, according to price lists as reported by market research company OBOP, upped 3.5% y/y and came in at PLN 213.7m. This gave TVN channel the second position on the market after Polsat which increased its ad revenues by 16.3% to PLN 235.6m. At the same time, figures for TVN 24 and TVN Seven, respectively increased by 81.1% to PLN 18.2m and decreased by 16.5% to PLN 10m.
Our view: The news is negative for TVN, as it is the first time in few years that TVN lost to Polsat in this ranking, however it could have expected after much better audience share reported by Polsat recently. We believe that pricing lists revenues reflect the trend of the real advertising income. TVN is expected to counteract this trend however only with the new programming since autumn. As such we could expect May results to be repeated over the summer months. Although we believe that recent price weakness of TVN could be attributed to increasigly better position of its main rival, we think the news could have some negative impact on TVN share price.