Russia's CTC Media's Second Quarter-Earnings Drop
MOSCOW -- CTC Media, Russia’s leading independent media company, has announced its unaudited consolidated financial results for the second quarter and the first six months of 2012. While the half-year figures are more impressive than those for the second quarter, the company has announced the decision to adjust the target demographics for its CTC and Perets channels over the course of the next years.
CTC Media’s Q2 net profits declined by 11 percent to $34 million on revenues down 8 percent to $187.6 million, year on year. The company’s H1 net profits, however, were up 9 percent to $66.8 million on revenues up 2 percent to $378.7 million. OIBDA declined by 18 percent in April through June to $54.1 million, while for the entire six months, the figure was up 3 percent to $109.2 million.
“We have continued to invest in our in-house content production and broader programming acquisition, as well as in the build-out of our footprint and online presence,” Boris Podolsky, Chief Executive Officer of CTC Media, commented in a statement. “However, our high cash conversion levels have enabled us to pay out quarterly cash dividends totaling $41.1 million in the first half of the year and still end the period with net cash of $124.2 million. As previously announced, we intend to pay out quarterly dividends totaling approximately $80 million in 2012.”
Meanwhile, the company plans a shift in the programming of its flagship channel CTC next year, with the target demographics to switch from the current “all 6-54” to “all 10-45.” Similarly, the channel Perets is to focus on the “all 25-49” target demographics.
“The change will take place from the beginning of 2013 and reflects the company’s overall positioning strategy for Domashny and Perets and the channels’ high affinity levels in these commercially attractive audience groups,” Podolsky commented. “The transition is therefore expected to have a positive impact on both audience shares and inventory levels moving forward.”
In January through June 2012, CTC’s average audience share declined by 1.03 percent, year-on-year, to 9.77 percent, according to the audience counter TNS Russia.