Yesterday parliament approved a ban on TV ads on the state TV channels as of 2008. The ban will be imposed gradually. TV Nova and TV Prima (the two private channels) will thus slightly benefit by dividing part of an extra USD 40m per year in TV commercial revenues from the state TV. This would increase TV Nova’s commercial market share to around 75% from its current 66% according to the OMD agency. At the same time, the air-time price may also increase due to the improved market position of TV Nova. The impact would, however, be softened by the introduction of digital TV. We estimate the total TV commercial market to be worth around USD 450m by 2008. CME’s CEO Michael Garin said in yesterday’s newspaper that the ban on advertising would have only a minimal positive effect on CME’s revenues. According to our calculation, the impact on the valuation would equal USD 2 per share.