Mixed fortunes for nc+

Markus Tellenbach

TVN and Canal+-backed Polish pay TV operator nc+ saw its post-paid subscriber base fall 3% year-on-year to 2.15 million, with revenue dropping by 5% to PLN1.606 billion (€380 million). 

However the pay TV operator’s ARPU rose by 4% to PLN68, while EBITDA rose by 45% to PLN280 million.

The growth in EBITDA led to nc+ contributing PLN26.4 million to part owner TVN’s profits for the nine months to September, versus a loss of PLN7.3 million for the same period in 2013.

TVN itself grew its revenues by 7.1% to PLN328 million in the third quarter. Advertising revenues were up by 8.3%, boosted by a strong performance from premium TV channels.

TVN’s adjusted EBITDA was flat year-on-year at PLN84 million for the quarter, driven down by investment in production that offset the increase in revenue.

The broadcaster’s flagship channel boosted its audience in the quarter, which along with the performances of channels TVN7, TTV and TVN24 BiS, led to an overall 0.1% increase in audience share year-on-year. The broadcaster’s premium channel portfolio also made a significant contribution to the top line with a 66% increase in audience share and a sixfold increase in revenue.

”The strong performance of our schedule in September and October confirms TVN audience leadership position driven by our own in-house productions. At the same time Premium TV, our advertising brokerage service, continues its sound growth profile and increasingly contributes our advertising related revenue which accelerated in line with expectations and grew by 8.3% in the third quarter. Therefore, with nine-month growth rate of 4.9%, we confirm previously given guidance of mid-single digit increase of advertising related revenue for the full year,” said CEO Markus Tellenbach.

“We also clearly demonstrate our commitment to deliver upon profitability expectations: adjusted EBITDA arrived at the level comparable with the one achieved in 2013 while net profit soars thanks to sound deleveraging despite maintaining high pay-out ratio to the shareholders. And today we have made next steps on this matter by announcing a share purchase offer of PLN150 million and Senior Notes repurchase of €22 million.”

Separately, TVN said it will use up to €60 million this year for the early redemption of debt maturing in 2018. The broadcaster has issued a notice of redemption to holders of its senior notes due in 2018 and will redeem €22 million of these on December 8, which follows the earlier repurchase of €33 million of these notes in March.