Association of Communication Agencies (AKA) is asking for maintaining current level of TV advertising on state channels until digital broadcasting is launched. They will be lobbying for amendments to TV bill that requires elimination of TV advertising on state channels since 2007 and complete removal since 2008 as it will create duopoly situation with all its consequences in price setting mechanism. Antimonopoly office sees the efforts positively, however states that all is in the hand of politicians.
Our view:
We see these efforts as obvious to maintain the more competitive market environment and negative for CME as its ad pricing position would be weaken. However at the moment no politician has expressed himself that they are working on some changes, therefore we would see this news as neutral for today's trading. We expect CME sales to increase in Czech Republic by 22.9% next year.