Axel Springer Polska is close to reaching agreement on acquiring ‘Przeglad Sportowy’, the leading Polish sports newspaper, from Marquard Media Polska, according to today’s ‘Gazeta Prawna’. ‘Przeglad Sportowy’ has been selling 73.200 copies per day on average in 2006, and its advertising revenues reached PLN 30m.
Our view: We view the news on Agora’s main rival consolidating its position in the print media as slightly negative for Agora, since following the acquisition, the distance between Agora, with 41% market share, and Axel Springer Polska with 22%, would narrow. Agora probably would not be able to buy ‘Przeglad Sportowy’ itself due to antimonopoly considerations. We reiterate our Hold rating for the stock.