Russia's CTC Media Posts Q4 Financial Results

MOSCOW -- CTC Media, one of Russia’s leading media companies, has announced its unaudited consolidated financial results for 2012’s fourth quarter and the full year, suggesting that the company’s profits substantially increased.

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In 2012, the total operating revenues of CTC Media, which operates the Russian television channels CTC, Domashny and Perets, as well as TV assets in Kazakhstan and Moldova, were up five percent to $805 million, and the net income rose 75 percent to $93 million, year-on-year. However, the impressive net income increase follows a 64 percent decline in 2011.

The company’s total revenues in ruble terms were up 10 percent year-on-year, a figure that roughly corresponded with CTC Media’s Russian advertising revenues, which were up nine percent year-on-year in ruble terms.

“We had a record year for CTC Media with the total sales for the first time exceeding $800 million,” Boris Podolsky, the company’s CEO, commented in a statement. “We also delivered a stable year-on-year OIBDA margin of 32 percent, when adjusted for one-off non-cash impairment charges.”

He added that revenues of the company’s international division, CTC-International, as well as its digital media and sublicensing revenues were growing ahead of the Russian television advertising market and increased their contribution to the total sales five percent to seven percent year-on-year.

According to Podolsky, two of the company’s flagship channels, Domashny and Peretz, posted their highest-ever annual audience shares last year and outperformed the Russian television ad market in terms of sales growth, which compensated for a decline in the performance of the flagship channel, CTC.

In 2012’s final quarter, CTC Media’s total operating revenues stood at $264 million, up 12 percent year-on-year, and the net income was $64.9 million against net losses of $24.5 million in the corresponding period of 2011.

Speaking about the future, Podolsky said that the company expects the Russian television advertising market in 2013 to grow by up to 10% year-on-year in ruble terms, with CTC Media’s Russian television ad revenues to growing in line with the market and revenues from other businesses growing at a higher rate.

“Our Russian channels’ national inventory is now approximately 80% contracted for 2013 at higher average prices than last year,” he said. “We also expect to deliver an OIBDA margin similar to the 2012 level of 32%.”