Polsat announced up to 40% cut in its off season TV ads prices, in its pricelist for July 07 compared with June 07. TVN and public TV channels typically cut their prices off season by some 20%.
Our view: We view the news as slightly negative. Lower prices in off season, when TV companies have spare ads inventory to sell, means increased rivalry and pressure and on margins. However, the bulk of TVN revenues come from high season months. TVN has already guided for increased seasonality in its revenues.