TVN, the Polish commercial TV network, saw revenues in the fourth quarter improve by 4.6 per cent driving full year growth to 3.6 per cent – meeting guidance of low-single digit increase – a result of TVN’s content schedules dominating the audience share market, steady increase in the third party advertising inventory represented through Premium TV, stronger pricing as well as continued expansion of non-linear video content offerings.
Advertising related revenues grew by 5.4 per cent in the fourth quarter and improved the full year increase to 5.1 per cent – in line with the guidance for mid-single digit growth and outperforming the estimated TV advertising market expansion of nearly 5 per cent.
Adjusted EBITDA in the fourth quarter was PLN 184 million – up by PLN 26 million, fuelled by the incremental revenue and strong cost discipline. Full year adjusted EBITDA arrived at PLN 530 million – exceeding the guidance target of PLN 520 million.
Reported EBITDA growth in both fourth quarter and full year reflected improvement in adjusted EBITDA coupled with impact of associates turned from impairment and share of loss in 2013 to share of profit in 2014.
Markus Tellenbach, Chief Executive Officer said: ”2014 was a year of full turnaround and recovering momentum. The economy accelerated as expected and almost doubled its growth rate driven by domestic demand and investments. Such favourable macro environment translated into long awaited increase in advertising budgets and recovery of television advertising market which has grown by nearly 5 per cent – in line with the guidance I have communicated a year ago.
TVN was well advanced in preparations to benefit from improving demand for advertising and as a result we have accomplished improving metrics across all business segments. Introduction of TVN24 Biznes i Świat channel resulted in audience shares significantly higher than these of its predecessor TVN CNBC. Implementation of new pricing policy reinstalled rational approach in the market. Strengthened spring and autumn programming schedules of TVN main channel outperformed competitive content offerings while portfolio of thematic channels posted another year of audience share growth. Further development of non-linear video content platform drove increased usage. And our sales representation service, Premium TV, contributed to our strong results based on steadily expanding group of cooperating TV stations.
Altogether we have delivered upon the guidance: our advertising related revenue growth was 5.1 per cent – in the mid-single digit range, our consolidated revenue increased by 3.6 per cent – in the low‑single digit range, while the adjusted EBITDA arrived at PLN 530 million – above our guidance target. These financial measures confirm the impressive operating strengths of our businesses.
2015 is expected to deliver further improvements across all business metrics. Economy should continue accelerating and we envisage this translating into the television advertising market. TVN’s leadership position will benefit us with revenue growth expected to exceed the market and profitability to gradually improve further – in line with our medium term outlook.”