Following on the previous information concerning the 2007 TV ad prices, Petr Dvorak, CEO of TV Nova, stated that the average TV ad prices should growth by 15% y/y. The main focus of TV Nova is the group between 15 – 54 years. The whole TV ad market has been rumoured to growth by 25 - 30% y/y.
Our view:
The 15% y/y growth at almost half of the initial speculations of prices growing by 25-30% y/y. Note that this is the average growth rate, which may have a different impact on the whole TV ad market as well as TV Nova’s top line given (i) various discount given to various clients and that (ii) the 15% y/y increase being an average increase suggests that some clients would be paying higher rate – in particular larger clients, who cannot afford not to be present at TV Nova. In addition, CME provided a guidance for TV Nova’s top line for 2007 of 15% y/y to USD230m from USD200 in 2006. We also note that CME has been always rather conservative in providing guidance.