The company attributes the better numbers to higher ad spending, which rose seven percent last year. However, though the group forecasts another increase of eight percent in the TV ad market this year, officials are pessimistic about reaching the same level of success.
"We're not expecting such big growth this year," said company president Piotr Walter. "It will be very difficult to repeat."
That's because much of last year's gains came from new acquisitions and currency fluctuations. The purchase of TVN 24 Sp. z o.o. (which includes TVN 24, TVN Meteo and TVN Turbo) was completed in March last year, and brought the company zł.53 million in revenues, while the strengthening of the złoty against the euro accounted for zł.75 million.
Still, company officials remain upbeat. "Due to faster revenue growth over expenses, EBITDA this year will increase slightly, or remain the same," said Karen Burgess, TVN's financial director.
Along with revenues, costs rose 22 percent year-on-year, in large part due to the launching of two new channels: ITVN, aimed at Poles abroad, and TVN Style. While Walter won't exclude the possibility of launching yet another channel, he emphasizes that TVN's focus this year will be on improving the quality of programming.
"The biggest challenge this year will be to make our content better," he said.
Andrew Kureth
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