Poland Media Report - 2013

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Poland Media Report - 2013

This report discusses the media sector in Poland, analyzing trends and developments through September 2013. The report also includes corporate news for firms such as EmiTel, Presspublica, Multikino, and Polskapresse.

The performance of the Polish media sector is linked to advertising spending. The Polish advertising market slid in the negative area in 2012, when it declined by around 5% y/y, following two consecutive years of positive annual performance. Dailies and magazines recorded the steepest plunge in advertising expenditure revenues last year, while the Internet segment was the only one that posted y/y growth.

The movement of advertising expenditure from traditional newspapers to the Internet continued in 2012 and is expected to follow the same trend in 2013, considering that newspaper advertisers can reach their targets more easily online and newspaper circulation is still under pressure, with slim prospects of witnessing a quick rebound.

As in other countries in the CEE region, the sector’s outlook relies to a large extent on the evolution of the overall economy and consumer confidence, with impact on advertising budgets. Accordingly, advertising expenditure is expected to start recovering in 2014, with the projected improvement of the overall economy.
As advertisers continued to limit their expenditure in all channels except the Internet, the advertising market steepened its decline in H1 2013 and, even though some improvement is expected in the second half of the year, full-year performance is projected to remain negative.

Key Points:

• In corporate news, Polish infrastructure operator EmiTel, acting also as a technical operator of terrestrial digital TV, acquired Info-TV-Operator, a radio diffusion-focused telecom company, from investment fund firm Magna Polonia.

• Presspublica Ltd changed its name to Gremi Media and adopted a new three-year strategy focusing on developing the segment of new media.

• UK-based cinema group Vue Entertainment signed an agreement to buy Polish multiplex operator Multikino from local media holding company ITI.

• Polish media group Polskapresse inked an agreement to buy local peer Media Regionalne from U.K.-based publisher Mecom Group for PLN 17mn (EUR 4.1mn).

• Although the Internet segment keeps gaining ground among advertisers, TV advertising remains the major channel, accounting for 49% of total advertising expenditure in 2012 and increasing its share to 49.5% in H1 2013.

Table of Contents

Executive summary
1. Market overview
1.1 Advertising market slides in negative area in 2012, following two years of annual growth
1.2 Decline of advertising expenditure expected to maintain in 2013, market to recover in 2014
1.3 Poland’s public broadcasters rely on advertising revenues
1.4 Movement of advertising expenditure from traditional newspapers to internet to continue
1.5 M&A in media sector up y/y in H1/2013, but total value is low

2. Television
2.1 TV advertising market expected to record single-digit y/y decline in 2013
2.2 TVN, Polsat, TVP maintain leader market shares in TV advertising in Q2/2013
2.3 Pay TV market to continue growing, despite high saturation level- study
2.4 TVN’s 3% y/y revenue drop in Q2 moderates H1/2013 annual decline
2.5 TVN closes EUR 430mn bond issue maturing in 2020
2.6 Cyfrowy Polsat completes acquisition of Polskie Media
2.7 Public TV broadcaster TVP reports gross profit in H1/2013
2.8 Telecom firm EmiTel acquires peer Info-TV-Operator

3. Printed media
3.1 Revenue of book publishers shrink 1.5% y/y in 2012
3.2 Newspaper sales continue on downward path
3.3 Agora’s sales shrink, operating result improves y/y in H1/2013
3.4 Daily newspaper publisher Presspublica changes name, adopts new strategy
3.5 Polskapresse inks agreement to buy Media Regionalne

4. Internet
4.1 Online advertising rises 10% y/y in 2012, Q1/2013 shows encouraging performance as well
4.2 E-book market value reaches PLN 50mn in 2012
4.3 Media group PMPG ready to join consortium for acquiring Wp.pl
4.4 Orange launches e-book library for its mobile customers

5. Cinema
5.1 Number of cinemas keeps decreasing since 1989
5.2 Cinema ticket sales inch up 0.8% y/y in H1/2013
5.3 UK-based cinema group buys Polish Multikino chain
5.4 Cinema City reports higher y/y revenues in Q2/2013, plans two openings in Warsaw
5.5 Helios to open cinema in Sudecka next year

Number of pages: 17
Release Date: Thu, 03 Oct 2013