CTC Media not ruling out merger with future Vi seller after 2015
MOSCOW. Oct 29 (Interfax) - CTC Media is not ruling out the possibility of merging with a future united Vi seller, but says this cannot happen before 2016.
"We will discuss the possibility of entering into a united seller after 2015," Yuliana Slashcheva, the CEO of the media holding company, said at a call conference for analysts Wednesday.
IN the short-term, at least in 2015, CTC has decided to hold on to the autonomy of its sales house Everest S, which it built for several years. Right now this is the clearest, most transparent and advantageous option for CTC Media advertisers and shareholders," she said. If in the future it turns out that transferring Everest to a united seller is more advantageous, the company may change its decision, she said.
In a statement Wednesday about the third quarter, CTC Media said it did not take part in the announced deal to create a united seller on the basis of Video International, as Everest allows for the creation of additional shareholder value. The company said it is positive about market consolidation as it will strengthen the overall position of advertising sellers.
CTC Media Russian advertising revenue grew 4% in rubles in the third quarter, exceeding the market average rate (3.5% according to preliminary figures). This result was achieved despite the media holding's advertising inventory going down by 6% in the third quarter. "In other words, by efficiency Everest was around seven percentage points ahead of the market overall," CTC Media said.
CTC Media uses Video International consulting services and is looking at the possibility of working with the new Vi, the media holding said.
National Media Group (NMG), Gazprom Media Holding, VGTRK and Channel One announced in early October that they were setting up a united seller with equal shares on the basis of Video International. The new seller will work under the Vi brand and will merge all the existing sales directions of Video International, Gazprom Media and VGTRK.