TVN - ad revenues grew faster at Polsat in 2007

In 2007 TVN (26 PLN, 0,43%) list advertising revenues, before rebates, reached PLN 2.19bn, up 6.8% y/y, coming behind Polsat ad revenues, at PLN 2.25bn, up 17.4% y/y, according to TNS OBOP. Public television channels ad revenues reached at TVP1 PLN 1.56bn, up 15.8% y/y, and at TVP2 PLN 1.08bn, up 3.5% y/y. The overall TV ad revenues grew by 12.3% y/y on comparable basis.

Our view: We view the news as negative. Polsat, the main rival of TVN, has successfully translated the improvement in its audience share throughout 2007 into advertising revenues.