CTC Media expects OIBDA margin to increase by 35%, expenditures to go up by 20% in 2010
MOSCOW. Aug 5 (Interfax) - CTC Media expects its OIBDA margin to go over 35% by the end of 2010, the company said in a statement.
This figure came to 32.5% in 2009.
The statement said: "CTC Media has now contracted approximately 95% of its forecast full year 2010 Russian national inventory under forward contracts at average pricing levels that are higher year-on-year for the second half of the year and the fourth quarter in particular. "The Russian television advertising market is currently expected to grow by approximately 10% year-on-year in 2010 in ruble terms, and the Company expects its revenues to perform in line with this level of market growth.
"The Company's operating expenses are expected to increase by approximately 20% year-on-year for the full year in ruble terms, when excluding $18.7 million of non-recurring impairment charges and $28.6 million of non-recurring stock-based compensation [For company president Alexander Rodnyansky] expenses in 2009. The increase reflects investments in programming, marketing and network coverage, higher stock-based compensation expenses and the development of an internal advertising sales house.
"As before, CTC Media's capital expenditure (excluding acquisitions) is 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 single location in Moscow, and the establishment of a back-up broadcasting facility at the existing location."
CTC Media is a leading independent media company in Russia, with operations throughout Russia and elsewhere in the CIS. It operates three free-to-air television networks in Russia - CTC, Domashny and DTV, Channel 31 in Kazakhstan and TV companies in Uzbekistan and Moldova. CTC Media also owns two TV content production companies, Costafilm and Soho Media.
CTC's major shareholders include Alfa Group (25.9%) and Fidelity funds (5.8%). Around 16% of the company's shares are traded on the Nasdaq.