Poland's TVN Q4 net falls, revenues to grow

Poland's TVN Q4 net falls, revenues to grow

Polish television broadcaster TVN said on Monday its fourth-quarter net profit fell 27 percent to 68 million zlotys ($21.44 million) due to higher costs and lower revenues from financial operations.

Full-year earnings, however, edged up to 209 million last year from 196 million in 2004 due to strong performance in the first three quarters.

TVN said in a statement its 2006 revenues should rise by between 16 and 18 percent, quicker than the expected growth of the local television advertising market, which TVN predicts will rise 12 percent this year.

Consolidated revenues grew at TVN, a leading Polish media group with a market value of $1.9 billion, by 20 percent to 860 million zlotys in 2005, thanks to higher ad revenues and growing audience share.

In its financial forecasts for 2006 the company expects its EBITDA margin, an efficiency ratio, to reach between 29 and 31 percent in 2006, down from 34 percent last year due to extra costs linked to its employee incentives programme.

Excluding the costs, which TVN estimates at 44 million zlotys, its EBITDA margin would stand at between 34 and 36 percent, the company said.