Polish Media watchdog KRRiT will debate today whether to cancel, on formal grounds, the broadcasting license of TV4, a small, 4% audience share TV channel airing movie re-runs, affiliated to Polsat. In the case of canceling the license, KRRiT would announce an open tender for the frequencies used by TV4. However, Mrs. Kruk, KRRiT chairman has indicated that TV4 license would probably be prolonged.
Our view: The uncertainty on the future of TV4 license has sparked speculation that Agora might bid in the tender, in an attempt to increase its exposure to electronic media, which drove the stock price up 5.2% yesterday. Although we would attach a rather small probability to such a scenario, at this stage, given numerous question marks relating to the tender itself, rivalry with other bidders (Axel Springer?), the question of Agora finding a partner (News Corp?), we view the news as positive for stock price.