Mr. Fels, CEO of Axel Springer Polska said in an interview with ‘PAP’ agency that he does not rule out increasing ‘Dziennik’ copy price from PLN 1.5 currently, but he finds it difficult as long as Agora keeps ‘Gazeta’ price at the same level. He added that ‘Dziennik’ targets 10% market share in terms of daily advertising revenue by the end of 2006, from 6% currently. Mr. Fels expects ‘Dziennik’ to turn profit within 2-4 years.
Our view: We forecast ‘Dziennik’ to reach 9% market share in daily newspaper advertising by 2007. We assume that both ‘Dziennik’ and ‘Gazeta’ would increase price somewhere in 2007. We leave unchanged our estimates following Mr. Fels comment.