According to TNS survey, gross expenditures on TV ads increased by CZK 47.7m in June (+3% y/y), to total CZK 1.8bn. In June, TV stations broadcasted 51 more hours of advertisements compared to the same period last year. TV Nova’s ad hours decreased by almost 17 hours, while its biggest rival, TV Prima’s ad time increased by 51 hours. TV Nova’s share stands at 47.1%, while TV Prima’s at 41.7%.
Our view:
TV stations’ share on TV ads (indicated by GRP points) has changed significantly in second half of 2005, while in 1H06 has more or less stabilized. Although TV Nova still struggles below 50% share, figures are not surprising as we have informed recently that TV Prima sold out 94% of its ad time inventory in the past quarter, compared to 57% of TV Nova. We expect TV Nova of show improved figures towards the year-end; meanwhile we reiterate our Buy recommendation for CME.