Free-TV Emerging Markets comprises the 19 free-TV channels in the Baltics, the Czech Republic, Bulgaria, Hungary, Slovenia, and Ghana.
The Free-TV Emerging Markets business area reported a 3% sales decline in 2009, and a 9% sales decline at constant exchange rates. The year on year development reflected the adverse economic environment during the year, with lower levels of advertising expenditure offset by the consolidation of Nova Televizia in Bulgaria since 16 October 2008. Pro forma sales when including Nova Televizia were down 19% year on year in 2009.
Due to the high operating leverage and high incremental margins in the Group’s Emerging Markets free-TV businesses and the significant impact of the global economic recession on advertising markets in the region, the Emerging Markets Free-TV business area reported an operating loss for the full year, despite being profitable in the fourth quarter.
| Commercial share of viewing (%) |
2009 |
2008 |
| Estonia (15-49) |
40.2 |
43.5 |
| Latvia (15-49) |
34.7 |
36.2 |
| Lithuania (15-49) |
40.4 |
40.3 |
| Hungary (18-49) |
7.9 |
7.3 |
| Czech Republic (15-54) |
20. 8 |
20. 5 |
| Slovenia (15-49) |
11.2 |
9.7 |
| Bulgaria (18-49) * |
31.7 |
28.0 |
* Pro forma for the combined channels Diema and Nova
Viasat’s combined audience shares were up substantially in both Estonia and Lithuania during the end of the year, which thereby stabilised their position. The improvements reflected a successful line-up of local own productions, particularly strong performances by the secondary channels in Estonia and Latvia, and effective marketing campaigns in Lithuania. In Lithuania the audience shares were also stable for the full year.
The target audience share in the Czech Republic was stable year on year, and new channel Prima COOL had achieved a commercial target audience share of 2.5% by the end of the year.
The Group’s free-TV operations in Bulgaria comprise Nova Televizia as well as the Diema, Diema2, Diema Family and MM channels. In December Viasat extended its exclusive broadcasting rights to English Premier League Football until the end of the 2012-2013 season.
The Hungarian channels and TV3 Slovenia continued to report stable combined audience share.
MTG’s operations in Ghana are still in their investment phase. The Group continued to improve the programming schedules throughout the year and acquired the exclusive live free-to-air broadcasting rights to the English Premier League for Viasat1 channel as well as the exclusive live free-to-air broadcasting to the UEFA Champions League in 2009.
Significant events
Free-TV channel Prima COOL was launched in the Czech Republic on 1 April. The new channel complements MTG’s existing TV Prima channel and was launched following the award of new digital licenses to TV Prima as part of the ongoing digitalisation of the Czech TV market. Analogue terrestrial broadcasting is gradually being switched off, with the process due to be completed by the end of 2011.
MTG completed the reorganisation of the ownership of its broadcasting assets in Bulgaria on 6 August 2009, following approval by the Bulgarian Commission for the Protection of Competition. All of the Group’s Bulgarian broadcasting assets have been merged into MTG subsidiary Nova Televizia. MTG now owns 95% of the enlarged Nova Televizia group, whilst Apace Media plc owns a 5% minority interest. ERA TV in Macedonia was subsequently sold.