Public television has delayed the launching date of the round-a-clock news channel rivaling TVN24, to be created from the existing regional channel TVP3, from January 2007 to mid-year 2007, according to latest edition of ‘Press’ monthly. Moreover, in their autumn schedules, TVP1 and TVP2 have moved their current affairs programs to late evening hours.
Our view: We believe that audience share gains revealed in recent September statistics are likely to be maintained over entire autumn - winter season. TVN24 has been very effective tool in increasing number of GRP’s sold lately, considering limitations on TVN main channel ads inventory. We expect positive market reaction to the news, as it improves chances for TVN to beat its own, and our, profit forecast for 2006. Nonetheless, we think that the huge valuation premium for TVN justifies only a Hold rating.