Agora and TVN, both being among Poland’s biggest media companies, had a good third quarter. The market reacted to their reports differently, however. Agora rose 2.95 percent to PLN 54.15 (EUR 14.9) while TVN shed 2.08 percent to PLN 24.
“It’s hard to understand why investors reacted negatively to TVN’s results. The company had very good sales in the third quarter, mainly thanks to high revenues from advertisers” Krzysztof Kaczmarczyk, Deutsche Bank analyst said.
In the third quarter, TVN had PLN 297m of consolidated sales, or 38 percent more than in the same period of last year and PLN 56m of EBITDA, which is 65 percent more than last year. The net loss grew from PLN 3m to PLN 78m but it was because of one-time event: deducting bond options. Excluding the option effect, the company had PLN 21m of net income against PLN 9m a year ago.
“At first, it may seem negative that the company increased costs in the last quarter. But it was connected with buying new content, more expensive programs. In long-term perspective, such strategy is profitable because it will let TVN regain its market position which has been weakening recently. It’s particularly important with increasing number of viewers of rival Polsat”, Krzysztof Kaczmarczyk said.
TVN may acquire a small TV broadcaster this year or early next year.
Agora, the publisher of “Gazeta Wyborcza” daily presented quarterly results above expectations for the second consecutive time. Consolidated sales in the third quarter amounted to PLN 284m, and were 16 percent higher than in the same period of 2006.
Both media groups earned thanks to boom on the advertising market. Agora estimates that ad spending rose 18 percent, including 8 percent in dailies. Television had commercial revenues 25 percent higher than a year ago.
(PLN 1 = EUR 0.275)