Gross expenditures on TV ads increased by 21% y/y in December, to total CZK 1.66bn, but fell by 35% in comparison to November level of CZK 2.57bn as CTK informed. In December, TV stations broadcasted 29 more hours of advertisements y/y - TV Nova (owned by CME) had 16.75 hours more; while its biggest rival, TV Prima, had 11 hours more. Although TV Prima’s audience share (indicated by GRP points) decreased after two months under 30%, it increased by 7.9 points on yearly basis. TV Nova’s share declined by 6.9 points to 57%, while its share in the spring was around 70%. We believe this news is slightly negative but should not effect today’s trading with CME as trend has already been visible. We reiterate our Buy recommendation.
TV’s percentage share in GRP
Nova Prima CT
2005 2004 2005 2004 2005 2004
March 70.0 62.9 18.3 24.0 11.8 13.1
April 70.2 63.6 19.6 22.7 10.2 13.7
May 67.5 63.4 22.0 23,8 10.5 12.7
June 70.0 62.0 20.8 25.1 9.2 12.9
July 67.1 59.7 17.2 21.8 15.6 18.5
August 63.5 59.3 21.0 22.4 15.5 18.4
September 62.5 61.7 26.6 26.0 10.9 12.2
October 59.3 62.7 30.5 26.4 10.1 10.8
November 57.7 65.0 31.8 24.4 10.5 10.6
December 57.0 63.9 28.7 20.8 14.3 15.3
Source: CTK