Six new digital channels warn that they are not prepared to accept postponement the deadline for switching off the analogue broadcasting. 9 September 2009 is the only acceptable date, while TV Nova is pushing for 2011 or even 2012.
Our view:
Postponement of the process is obvious from the side of TV Nova, which is the leader of the market and early adoption of fully digital broadcasting represents threat for it. Delaying may result to serious financial problems for newly established channels, thus we see the initiative as negative for TV Nova, however it should not have any trading impact on CME’s share today. We reiterate our Buy recommendation.