MOSCOW, 9 November. Net profit of “STS Media” on US GAAP for nine months of 2015 increased by 9% compared with the same period of 2014 and amounted to 3.5 billion rubles this is stated in the message of the company.
Net profit of “STS Media” for the third quarter increased 2.4 times – up to 2.75 bn In us dollar terms net income increased by 36% in the first nine months ($57.3 million) and by 40% for the third quarter (up to $44,2 million).
Consolidated operating revenue for the first nine months decreased 22% to 14.7 billion rubles, or by 57% to us $248,7 million.
This figure in particular reflects the reduction of the Russian market of TV advertising for the first nine months of 2015, amounting to 19%, the report says.
Advertising revenues amounted to 14.3 billion rubles ($242 million), a decrease of 23% in rubles and 54% in dollars.
Third quarter consolidated operating revenues decreased 15% to 4.9 billion rubles, or 51%, to $77,2 million due to the reduction of Russian TV advertising market by 13% in the third quarter of 2015
OIBDA for the first nine months amounted to 1.65 billion rubles ($27.3 million), a decrease of 70% in rubles and 82% in dollars.
The OIBDA margin stood at 11.2% against 29% in the first nine months of 2014. For the third quarter OIBDA amounted to 569,7 million rubles (a decrease of 69%), or $8.3 million (down 84%), OIBDA margin is 11.6% (32.3% of the previous year).
Plans for the future
“We continue to note the decline of academic performance of CTC from 10.3% to 8.7% in the third quarter of 2015 compared to the same period last year, negatively impacting the volume of our advertising revenue. On the share of the CTC channel was affected by audience fragmentation caused by the implementation in August of the current year the principle of “must carry” regulating the procedure of the relay cable and satellite operators signal channels included in the first and second multiplexes. This has led to the hardening of competition from other channels. We see the growth of the TV channel “Home”. A year after restyling, which included design changes and new program schedule, the average share of the channel in January-September 2015 $ 3.57 per cent compared to 3,37% in the same period last year. November 12, change the channel “Pepper” will come “Che”. We managed to launch the channel without additional costs. I’m sure that the new channel “Che” will show the results better than “Pepper”, which in the third quarter kept the percentage at 2%. As for “Pepper”, we are examining various options for the development of the brand, in particular, the continued broadcasting of the channel in different environments,” commented the results of the work of the General Director “STS Media” Juliana Slaschova.
She added that management continues to focus on cost control. In particular, the “CTC Media” has managed to sign a new contract with Russian television and radio broadcasting network (RTRS), which gave the company savings of $ 390 million rubles this year.
“Given the continuing uncertainty in the market at the present time the company does not provide a forecast for the whole year”, – stated in the message “STS Media”. According to experts, by the end of the year the Russian TV advertising market could be reduced by 17-18%.
The Board of Directors “STS Media” has decided not to pay dividends in the 4th quarter of 2015. Earlier, similar decisions were taken in 2-3 quarters. According to the results of the 1st quarter, the company paid dividends totaling 27.3 million dollars, or 0,175 dollars per share.
As previously reported, 24 September 2015 “STS Media” has signed the final agreement on the sale of 75% share in the “CTC investments” – its Russian subsidiary, which owns all operating assets “STS Media” holding UTH Russia Alisher Usmanov and Ivan Tavrina approximately $200,5 million with possible adjustments.
Under the agreement, the company has pledged to approve the issuance of additional shares “CTC investments”, whereby the LLC “UTV Management” will become the owner of 80% of “CTC investments” that would “CTC Media” to ensure full compliance with new requirements of the law “On mass media” limiting foreign ownership of Russian broadcasters. “CTC Media” plans to hold an extraordinary meeting of shareholders in December 2015 for approval of the agreement for the sale of assets “UTV Management” and the subsequent transaction for the distribution of funds between the shareholders.