According to TNS survey, gross expenditures on TV ads increased by 7% y/y in January, to total CZK 1.07bn (+CZK 75m y/y), but fell by 35% in comparison to December level of CZK 1.66bn. In January, TV stations broadcasted 13.5 more hours of advertisements y/y – however TV Nova (owned by CME) had 5.5 hours less; while its biggest rival, TV Prima, had 19 hours more.
In y/y comparison share of TV stations on TV ads (indicated by GRP points) has changed significantly. The worst development was for TV Nova, which lost it dominant 71.1% share to 47.2%. On the other hand TV Prima’s share boosted from 12.4% to 34.5%. Although these trends have been visible throughout the whole year of 2005, TV Nova’s share in January declined more than during previous months. We see this new as negative for today’s trading with CME but due to the position of CME in the region we reiterate our Buy recommendation.