TVN has announced the best ever audience share results in 1Q06. The company moved from fourth to second position among the most popular TV stations in Poland in terms of all day audience. The company said the gains were attributable to successful launches of locally produced entertainment shows and sitcoms.
TVN Group channels increased their prime time audience share in its target group from 30.5% in 1Q05 to 35.1% in 1Q06. Its all day audience share rose from 17.0% in 1Q05 to 20.0% in 1Q06. Rival TV stations audience share dropped slightly or remained unchanged during the period.
TVN announced separately audience share data for March 2006, which include the initial results of its spring program schedule. TVN Group channels increased their prime time audience share in its target group to 37.7%, while its all day audience share climbed to 21.4% in March 2006. The audience of TVN most popular program “Strictly come Dancing” jumped from 5m viewers in autumn 2005 to 7m in spring 2006.
We believe audience share data for March 2006 are indicative of positive second quarter results. We reiterate our Buy rating for the stock with PLN 108 fair value estimate.