CTC H1 profits down 14%, revenue up 16%

Expects to be in line with Russian ad growth of 10% this year

MOSCOW -- CTC Media, Russia's leading commercial broadcast group, said Thursday that its Q2 net profits declined by 31% to $20.9 million on revenues up 15% to $130.5 million, year on year.

Anton Kudryashov, CTC's CEO, explained the decline by the company's investments. "We have continued to invest in our programming schedules and network coverage, with a particular emphasis on the development of our smaller channels," he said in a statement. "These investments have already resulted in significantly higher audience shares for the Domashny network."

He added that the company is also investing in the development of its own internal sales house in a bid to step up control over the sales process, while continuing to work with its current sales house, Video International.

CTC said it expects "to perform in line" with the Russian TV ad market growth, expected at 10% this year.

CTC's H1 net profits declined by 14% to $46.1 million on revenues up 16% to $253.7 million, year on year.

"We remain in a strong financial position with no borrowings and have made the latest of our four intended 2010 dividend payments," Kudryashov added. "In addition to our previously announced capital expenditure program, we also continue to review attractive acquisition opportunities in our target markets."
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