CTC Media sees Q4 net profit plummet 59%, below forecast
MOSCOW. March 6 (Interfax) - CTC Media saw net profit fall 59% year-on-year in the fourth quarter of 2014 to $18.6 billion, the company said in a statement.
CTC Media's performance was worse than an Interfax forecast, which expected $35.2 million in net profit.
Operating income before depreciation and amortization (OIBDA) decreased 69% in Q4 to $25.1 million from $80.1 million the previous year. Adjusted OIBDA dropped 50% to $54.5 million from $109.9 million.
OIBDA margin fell to 13.8% from 30.8%, while adjusted margin was 29.9%, down from 42.3%.
OIBDA and OIBDA margin were also below forecast ($58 million and 33%).
CTC Media's consolidated operating revenue declined 30% in October-December to $182.2 million, which was above the average of analysts' forecasts ($176.3 million).
Consolidated revenue in rubles hardly altered in Q4, and the same was true of advertising revenue. But advertising revenue in dollars fell 30%. Advertising revenue accounted for 97% of overall revenue in Q4 and 98% in the year.
In the year, revenue expressed in dollars fell 15% to $711.4 million, including $699.1 million from advertising, down 13%. OIBDA fell 26% to $177.1 million and the OIBDA margin was 24.9%, down from 28.9% in 2013.
Adjusted OIBDA fell 24% and the adjusted margin was 29%, down from 32.5% a year previously and below the company's own guidance of around 30%.
Net profit in the year fell 29% to $108.1 million. Adjusted net profit was down 26% to $137.4 million.
Sales revenue in rubles rose 3% in the year to 27.25 billion rubles, including advertising revenue - 26.73 billion rubles, up 4%, outperforming the Russian TV advertising market as a whole.
"In 2014 and early 2015, Russia has experienced significant economic instability, characterized by depreciation of its currency, fluctuation in interest rates, a forecasted decline in gross domestic product in 2015 and a steep decline in the value of shares traded on its stock exchanges. In the fourth quarter of 2014, some large advertisers reduced their initially planned advertising expenditures. As a result, overall Russian television advertising market increased by only 2.3% in ruble terms in 2014 compared to 2013," CTC Media said.
"CTC Media showed strong operating results in 2014 despite a very challenging macroeconomic environment," said Yuliana Slashcheva, Chief Executive Officer of CTC Media.
"In the second half of 2014, we were also affected by the Russian government's embargo on foreign food products, which caused some foreign food producers to decrease their advertising presence in Russia and, as a result, on CTC Media channels. Lastly, in the fourth quarter of the year, we witnessed a significant weakening of the advertising market overall," she said.
"We also achieved our planned advertising sales across all of our main channels by year-end," she said.