Gross expenditures on TV ads increased in November by 17% y/y, to total CZK 2.57bn as announced by CTK. In November, TV stations broadcast 38.5 more hours of advertisements y/y - TV Nova (owned by CME) had 21 hours more; while its biggest rival, TV Prima, had 13 hours more. However, TV Prima also increased its ad audience share (indicated by GRP points) by 7.4 y/y to 31.8%. TV Nova declined by 7.3 points to 57.7%, while it share in the Spring was around 70 %. Overall, we believe this news is positive but should have only a marginal impact on subject’s price. We reiterate our BUY rating.
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
Source: CTK