According to TNS survey, gross expenditures on TV ads increased by CZK 420m in December (+25% y/y), to the total CZK 2.0bn. In December, TV stations broadcasted almost 51 more hours of advertisement compared to the same period last year. TV Nova’s ad hours decreased by 3 hours and its biggest rival TV Prima’s ad time increased by 54 hours, TV Nova’s share on TV ads expenditures dropped back below 50%, while TV Prima’s share significantly increased to almost 40%.
Our view:
TV Prima heated up competition mainly in pre-Christmas period via introducing expensive blockbusters which attracted advertisers. We see this deterioration in TV Nova figures as one-off only, taking into account also better programing structure in comparison to TV Prima. Note also that figure is only indicative and is gross without bonuses and discounts. We don’t expect market to react negatively to this piece of news.