In April 2007 TVN channels (TVN, TVN 24, TVN Siedem, etc.) managed to improved further their prime time, all-viewers audience share to 25.6%, up 0.2p.p. y/y, mainly on the back of strong performance of TVN24, reporting 1.7% audience share, up 0.6 p.p. y/y. However the results of TVN main channel, with 21.8% audience share, down 0.4 p.p. y/y, came behind that of Polsat, at 19.4%, up 1.6 p.p. y/y.
Our view: We might see some negative trading impact on the back of the news, as it signals the end of a long period of TVN increasing its audience share. The management indicated earlier, that it would invest more in programming, if the audience share growth turns disappointing. However, with a strong set of financial results for 1Q07 in sight, due out on May 15th, we reiterate our Hold rating for the stock.