TV advertising revenues were especially strong, analysts say Courtesy of TVN

Media group TVN, Poland’s only listed television broadcaster, posted a 26 percent y/y rise in consolidated revenues for Q1 2010, according to unaudited data released last week.
Revenues rose from zł.435 million in Q1 2009 to zł.548 million. EBITDA, however, declined by 51 percent, from zł.202 million to zł.98 million.

“The figures are good. Some people expected more, but still appreciate the positive trends,” commented Tomasz Pożniak, director of investor relations at TVN.

These results must be viewed in light of TVN’s acquisition of a majority stake in ITI Neovision, which owns satellite TV operator “n,” in March 2009, added Mr Pożniak.

“If the numbers for the first quarter of 2009 were adjusted for this factor … the change in comparable EBITDA [for Q1 2010] would be positive, while revenue growth more moderate, around eight percent,” he told WBJ.

TVN bought ITI Neovision from its parent company and controlling shareholder ITI Group for the sum of zł.110.70 million. Nonetheless, the platform is not yet profitable, despite having over one million customers.

In line with its overall revenue figures, TVN’s Q1 advertising revenues also grew strongly. Online advertising gained 16 percent y/y, increasing from zł.37 million to zł.43 million, but it was the 2.5 percent increase in TV advertising revenue – from zł.258 million to zł.264 million – which surprised analysts.

Source: TVN

According to Mr Janik, full year expectations for TV ad revenue growth are now as high as 10 percent and it should drive EBITDA in the seasonally strong second and fourth quarters.
Publication of the TVN Group’s audited results for Q1 2010 is scheduled for May 13.