3 Nov 2010 14:36

CTC Media boosts forecast of revenue increase for 2010 to 13% in rubles

MOSCOW. Nov 3 (Interfax) - CTC Media expects its sales revenue to go up by 13% in rubles for 2010, the company said in a statement.

The statement said: "CTC Media has now contracted approximately 98% of its forecast full year 2010 Russian national inventory under forward contracts at average pricing levels that are higher year-on-year, with fourth quarter prices up approximately 20% year-on-year in ruble terms. As a result, CTC Media expects its revenues for the full-year to grow by approximately 13% in ruble terms."

The company forecast in mid-year that the Russian television commercial market would increase to 10% in ruble terms and that its own sales revenue would go up at the same level.

The statement said: "As previously announced, the Company expects its operating expenses for the full year to increase by approximately 20% year-on-year in ruble terms, when excluding $18.7 million of non-recurring impairment charges and $28.6 million of non-recurring stock-based compensation expenses in 2009. The increase reflects investments in the programming, marketing and coverage of the Company's secondary networks, higher stock-based compensation expenses and the development of the internal advertising sales house.

"The Company therefore expects to report an OIBDA margin of more than 35% for the full year 2010."

This figure came to 32.4% last year. The OIBDA margin came to 30.7% for January-September of this year.

The statement said: "As previously announced, CTC Media's capital expenditures (excluding acquisitions) are expected to amount to up to $40 million in 2010 as a result of the upgrading of broadcasting equipment, the planned move of the digital play-out facility and headquarters to a new principal location in Moscow, and the establishment of a back-up broadcasting facility."

The company's capex in January-September came to $11.8 million.

CTC Media operates the CTC, Domashny and DTV television channels in Russia and owns media assets in Kazakhstan, Moldova and Uzbekistan, as well as two production companies. The largest shareholders are MTG (38.91%) and Alfa Group (25.64%). About 33% of shares circulate on the Nasdaq exchange.