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CME
Central European Media Enterprises (CME) had a difficult first quarter,
its net revenues of $167,433,000 (€126,493,000) being 3.1% lower
than in the same period last year. Its operating loss meanwhile rose by
34.4% to $10,303,000, though the net loss attributable to the company
fell by 36.6% to $13,329,000. CME’s broadcast segment saw a 6.8%
year-on-year fall in revenues to $146,797,000, while new media, while
still a small fraction of the total, rose by 40.4% to $3,679,000. Media
Pro Entertainment’s revenues meanwhile rose by 8% year-on-year to
$43,405,000. It also registered the strongest growth in OIBDA, up by 130.8%
year-on-year to $1,671,000. Revenues fell in all but one (Slovenia) of
the six CEE markets the company has a presence in. Separately, CME has
entered into a series of agreements with its major shareholders in order
to reduce its debts. They will see Time Warner provide a loan of up to
$300 million that can only be used for purchasing notes validly tendered
and accepted by payment by CME in the Debt Tenders Offers and Time Warner
Media Holdings and RSL Capital, affiliated to Ronald Lauder, buy around
11.5 million of CME’s Class A shares at $7.51per share.
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NEWSLINE
Russian cableco expansion continues
The Russian cable operator ER Telecom has secured a six-year loan of R6.5
billion (€167.1 million) from Sberbank. In a statement, the company
says it represents the second stage of raising debt financing totalling
R12.5 billion required to implement its ‘Leadership Strategy’,
announced in early 2010. The loans have been used to rapidly develop ER
Telecom, which since 2009 has expanded its activities from 17 to 42 cities.
At the same time, its average revenues have grown by 44% each year and
a total of over 117% over the last five years. ER Telecom now aims to
triple its revenues between 2011-15 and to by 2015 have over 8.6 million
subscribers, with a 20% share of both the broadband and cable TV markets
in Russia.
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Orange Polska arrests
decline
Orange Polska ended the first quarter with 663,000 TV subscribers, a 14.9%
increase on the same period last year. Its pay-TV segment was meanwhile
back to growth thanks to 19,000 subscribers of the n offer being added
in the quarter. The company’s revenues in the fixed segment in Q1
amounted to PLN1,927 million (€461 million), a 5.4% reduction on
a year earlier, compared to a 6.6% year-on-year fall in 2011 compared
to 2010. The EBITDA margin was meanwhile 36.4% in Q1 this year, compared
to 37.6% a year earlier, due mainly to lower voice revenues. Orange Polska
is the new brand name for the Polish incumbent telco and was adopted for
all its operations earlier this month.
Ukrainian telco looks to OTT
Ukrtelekom is looking into the possibility of launching OTT services.
According to ProIT, the Ukrainian incumbent has still not given
up on securing an IPTV licence and has reapplied to the National Council
for Radio and TV Council for one. The regulator began be re-award licences
last month but has so far only issued them to small regional players,
along with Ukrainian Radiosystems, which does not cover Kiev. OTT services
are slowly growing in popularity and are currently received in at least
80,000 homes.
Russian digital transition reviewed
Russia has ruled out the possibility of running DVB-T and DVB-T2 broadcasts
in parallel except in Moscow. In a wide-ranging interview with Kommersant,
Andrei Romanchenko, the DG of Russian Television and Radio Broadcasting
Network (RTRS), said that such transmission were only possible in the
capital as it had additional frequencies. Romanchenko brushed off complaints
about there being hardly any DVB-T2 receivers for sale in Kazan, Moscow
and St Petersburg and from the Association of Developers and Manufacturers
of Broadcast Equipment (Arpat) that Samsung was still only supplying old
sets for the Russian market. In the latter case, he added that Samsung
had signed an agreement to manufacture DVB-T2 sets and that they would
soon be on the market. General Satellite is the first company to make
DVB-T2 reception equipment available and Philips has also just made some
available. Romanchenko also dismissed concerns by Russia’s cable
industry about the possible launch of pay DTT services and said hoped
a tender for the second multiplex would take place this summer.
Croatian incumbent hold its own
Croatia’s incumbent telco T-HT continues to acquire residential
IPTV, DTH and cable TV subscribers in what is a highly competitive marketplace
and difficult economic climate, ending the first quarter with 325,000,
or 8.9% more than a year. An additional 20,000 business customers (+8.5%)
also opted for its TV offer. Significantly, over half (52.7%) of the company’s
ADSL subscriber base received TV services at the end of the quarter. T-HT
notes that despite a strong increase in broadband subscribers, the Croatian
market remains a significant growth opportunity for the company, with
just 46% of Croatian households currently connected to fixed broadband,
compared to a European average of over 62%. T-HT’s revenues in Q1
amounted to HRK1,806 million (€239.2 million, -4.7% year-on-year),
while EBIT was HRK437 million (+1%) and net profit after minority interest
HRK364 million (+3.7%).
Czech regional network mooted
The Czech Republic may soon have a new regional television network. According
to E15, negotiations are currently taking place between four
stations – TV Metropol, Polar, Genus Plus and the soon-to-be launched
VTV1, all of which belong to the Association of Regional Television –
about the possibility of launching such a network. However, it has still
to be decided whether a regional network would have its own brand or be
identified by those used by the four stations. Should it launch, the network
would be distributed by the third multiplex, which is operated by the
national transmission company Ceske Radiokomunikace. TV Metropol is currently
available in Prague and Central Bohemia, while Polar serves Ostrava and
Genus Plus Liberec. Once launched, VTV1 will operate in eastern Bohemia.
Baltcom assesses progress
The leading Latvian cable operator Baltcom had 14% more broadband internet
subscribers this March than in the same period last year. At the same
time, the number of subscribers using built-in TV decoders to receive
its digital TV services increased by 33% in March alone, while 13% more
were watching HD channels than a month earlier. Baltcom currently offers
internet access at up top 100 Mbps and more HD channels (10) than any
other company in Latvia. Backed by RPAX SA, a company set up by AXA Private
Equity Investors and Resource Partners, it has recently attracted investment
of €50 million and aims to be become the leading provider of broadband
and TV services in the Baltic Republics by 2015.
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CONTENT
Polish cablecos boost offers
The Polish cable operator Toya has included iplex, tvn player, Toya VOD,
TV Toya on demand and MOOD in its on demand offer. The services can be
received on 3G HD and 3G HD PVRs, as well as over the internet. UPC Polska
has meanwhile added Crime & Investigation Network Polsat, Polo TV
and VH1 to its channel line-up. Crime & Investigation Network Polsat
and VH1 are being offered in its Max and Max HD packages, while Polo TV
is available in the Select, Select HD, Max and Max HD packages.
PEOPLE
UK exec joins Ukrainian 1+1
The Ukrainian 1+1 group of companies as appointed David Brook as its head
of strategic marketing. In his new role, he will be responsible the development
and maintenance of the group’s TV channel brands, which include
1+1, Tet, 2+2 and Citi. Brook has at various times held marketing strategy
roles at the UK stations Channel 5, 5 and most recently STV. He was also
chairman and CEO of the production studio Optimistic Entertainment.
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MARTIN ORNASS-KUBACKI
SES Astra: from zero to hero
Central and Eastern Europe has long been an attractive proposition for satellite operators, with each keen to become a leading provider of DTH-delivered services in as many markets as possible.
It therefore goes without saying that every one of these operators has a story to tell, be it of success, failure or simply being too late to the draw when competing with its rivals. In the case of SES Astra, it can with some justification point to the Czech Republic and Slovakia as the markets that started off its success story in the region, despite the fact it only entered them as recently as 2005.
At that time, Central and Eastern Europe was served by a small number of mostly well-established DTH services and the ‘boom’ in new platform launches had yet to happen. In the case of the Czech Republic and neighbouring Slovakia, one of those platforms was a still relatively new Czech Link, which only had just over 50,000 subscribers.
Within a year Czech Link had been restructured, with Skylink and CS
Link taking over the brand's customers and 23.5 degrees East orbital
position, and a transformation had begun. Indeed, the number of customers
using the platforms grew by around 300,000 a year, so that by mid-2010
Skylink had over one million, of which 715,000 were in the Czech Republic,
and CS Link around 350,000 in the Czech Republic. Then a year later,
T-Mobile launched a DTH service based on the Skylink offer.
This success, achieved in only a short time, propelled the two platforms into the number one and two positions in both the Czech Republic and Slovakia. It also sent out a clear message to the rest of the industry to the effect that pre-paid DTH operations can be as, if not more, successful than those which use a subscription-based business model.
Indeed, one need look no further than Russia's Tricolor TV, which now
has just over 10 million customers, to see how true this is.
The latest and perhaps most interesting chapter in the history of Skylink and CS Link was written last year, when both were within the space of only a few months acquired by the Luxembourg-based M7 Group.
The latter is already a leading player in the DTH market in Western
Europe, operating, amongst others, Canal Digitaal, the Télésat
brands and Austriasat, and new opportunities to cooperate with SES Astra
have now opened up. They include simulcrypt, expanded technical support
and an exchange of DTH business know-how.
SES Astra's own position in the Czech Republic and Slovakia will also
have been strengthened by the platforms' acquisition by the M7 Group.
The company has until now contributed to their success by continually
adding to the number of HD channels it distributes from the 23.5 degrees
East orbital slot – the current number stands at 20 – and
indeed making 23.5 degrees East the de-facto national “"satellite
hotspot"” for both countries. As of 2010 there were already
one million Czech households receiving DVB-S services from 23.5 degrees
East, and at the beginning of this year the total number of users in
both countries stood at around 2.3 million.
SES Astra has, in addition, given viewers in the Czech Republic and Slovakia access to hundreds of FTA channels, including nine in HD, on Astra at 19.2 degrees East free of charge simply by using a duo LNB converter.
The company's commitment to the two countries has also been demonstrated
by the important role it has played in the transition to digital broadcasting
in both.
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CHRIS DZIADUL REPORTS
A date in Bucharest
Those who follow the industry in Central and Eastern Europe know only
too well that Romania is a unique and indeed special market.
Underpinned by cutthroat competition between what are effectively its
three main protagonists – RCS&RDS, Romtelecom and UPC Romania
– it is characterised by low subscription fees, even by regional
standards, as providers fight ever more harder to retain their customers.
At the same time, questions as to the future direction of the market
are arguably much harder to answer than in most other countries.
Take UPC Romania, for instance. Speculation that Liberty Global will
sell the company was rife for many months but appears to have finally
subsided, thanks in no small part to denials from senior executives. But
it is certainly not a market leader, as are its sister operations in other
CEE countries, and will remain in number two spot in the cable sector
for the foreseeable unless there is a fundamental shift involving RCS&RDS.
The latter remains in top spot in both the cable and DTH sectors and,
like UPC, also has a presence in other CEE countries. Perhaps the most
interesting developments involving the company in recent months –
aside from raising more capital – have been its move into content
and creation of a portfolio of proprietary channels.
For the incumbent telco Romtelecom, on the other hand, the direction
of travel has been one of acquisitions, buying up two DTH platforms and
merging them into its existing operation Dolce, and small networks to
build up its fledgling cable business. At the same time, it has also been
growing its still relatively new IPTV platform.
However, there are question marks as to the future ownership of Romtelecom,
with its backer OTE gradually selling off its assets due to the severe
economic crisis in neighbouring Greece.
Specifically in the DTH sector, we have also seen Focus Sat, which is
operated by UPC DTH, more than hold its own in a market in which RCS&RDS
and Romtelecom are the leading players.
All these issues and much, much more will be discussed at the next
Broadband TV News business breakfast, organised jointly with Telenor
Satellite Broadcasting. Taking The Future of Digital TV in Romania
as its theme, it will be held at the Marriott Hotel in Bucharest on Tuesday,
May 22 and all our readers are invited to attend. To register for free,
please go to:
http://www.broadbandtvnews.com/events/bucharest-business-breakfast-2012/
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Editor: Chris
Dziadul +44 20 8995 1287
Website: www.broadbandtvnews.com
Advertising: Chris Griffin: cgriffin@broadbandtvnews.com
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