According to TNS Media Intelligence monitoring agency, the total TV
gross advertising spending, before discounts and rebates grew by 14%
y/y to 23.2 bn koruna (USD1.08 bn) in 2006. CME's TV Nova had a 50% share
of viewed commercials, down 15 p.p. from a year earlier, while TV Prima
had a 39% share and state Czech TV had 11%.
Our view: At the first glance, the gross advertising spending data
indicate to a slightly faster than anticipated growth in TV ad spending
(14% vs. 12% y/y), and smaller drop in TV Nova market share versus 2005
(15 p.p. versus 21 p.p.) but that might be misleading, due to higher
rebates (competition among 'TV Nova' and 'TV Prima'). For the more
precise picture of the market, we need to wait until the publication of
the net advertising revenue figures from TV stations, in April / May.
We view the news as neutral. We reiterate our Buy rating for CME.