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Profile -- Data și ora publicării: 29.04.2013 23:31:15

CME-PRICES UP / Pro TV group look to doubling the cable, DTH and IPTV subscriber fees in Romania



Bucharest (MEDIA EXPRES) / April 29, 2013 / The Pro TV of televisions is trying to compensate the reduced advertising revenue with higher prices for both GRPs, but also by the increase in subscriber fees charged to cable and DTH companies that distribute the televisions the group operate in Romania, according to the latest financial release of CME.

CME's net income in Romania, where the company operates TV Pro TV and eight other programs, Acasa, Acasa Gold, Pro Cinema, Sport.ro, MTV Romania, Pro TV International, Pro TV Chisinau, and Acasa Moldova dropped by only one million dollars in the first quarter of 2013 versus the same period last year, from 43.3 million to 42.03 million dollars.

For comparison, the company recorded a financial disaster this year in the Czech Republic, where in the first quarter net income fell to 36.8 million dollars from 58.9 million last year.

According to the CME report, advertising spending on television in Romania fell by 7% in the three months ended 31 March 2013 compared with the previous year (compared to 30% in the Czech Republic). Despite this decline, the company reported strengthening audience in prime time for the entire group of stations they operate, and overall increase market share in Romania to 65%. Romania reported net income decreased 3%, or 1% given the currency, primarily due to lower spending on television advertising, but partially offset by increased market share and revenue growth of television of cable and satellite distribution.

CME report states that for Romania is currently negotiating an increase in fees for distribution on cable television and DTH, to bring them to levels similar to what was obtained in Bulgaria and, if the operation is successful, the new prices could come into force by the middle of this year.

"In Bulgaria, successful negotiations with the leading carrier and several others are expected to lead to a two- fold increase in carriage fees in 2013. We are currently negotiating similar price increases in Romania and we expect these increases to be effective towards the middle of the year. Distribution contracts in our markets are generally up for renewal on an annual basis at various times in the year and we plan to open negotiations with carriers in other markets as these renewals occur. Overall, we intend to achieve an increase of approximately 50% in carriage fees for the year across all our operations," according the quarterly financial report of CME.
(MEDIA EXPRES)






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