Czech Parliament rejected a rider yesterday to a banking law for returning advertising at Czech Television to last year's level of 1% of airtime. The measure from MP Petr Rafaj was supported only by his ESSD colleagues. Under current legislation, advertising will be completely banned from Czech public television in 2008.
Our view: We did not expect that the chamber would pass the amendment, as the opposition ODS party stated that it would not support it. However, the subject of TV ads increase in state TV will probably return to parliament again in near future. The Czech Association for Branded Products said it will continue to call for a change. Nevertheless, the prospects for passing it are small given that only opposing social democratic MPs would vote for amendment. We believe that news will not impact today's trading with CME and reiterate our rating Buy for the stock.