CTC Media
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| CTC Media. | |
|---|---|
| Type | Public (NYSE: CTCM) |
| Founded | 1989 |
| Headquarters |  Moscow based |
| Key people | Alexander Rodnyansky, CEO Vladimir Khanumyan, COO Boris Podolsky, CFO |
| Industry | Broadcasting, entertainment, TV, TV-entertainment,free-to-air broadcasting, TV-production |
| Products | CTC, Domashny, 31 Channel, Costafilm, Soho Media |
| Revenue | $ 472 million (in 2007) |
| Website | www.ctcmedia.ru |
CTC Media (NYSE: CTCM) is a leading independent media company in Russia. It owns and operates two national free-to-air TV networks in Russia (CTC[[1]] and Domashny), and expects its deal to acquire a third network (DTV) to close in the summer of 2008. It also operates two channels in the CIS - Channel 31 in Kazakhstan and a TV company in Uzbekistan. CTC Media also owns two TV content production companies: Costafilm and Soho Media.
Combined audience share for the CTC[[2]], Domashny and DTV networks for 2007 – 12.9%
CTC Media has two strategic shareholders: Modern Times Group AB (40%) and Alfa Group (26%). The company became public in 2006 and its common stock is traded on The NASDAQ Global Select Market under the symbol: “CTCM”.
Market capitalization of CTC Media is approximately $4.3 billion (as of March 27, 2008).
Financial Highlights for 2007
Consolidated revenue increased 27% to $472 million
OIBDA increased 27% to $220 million
OIBDA margin of 46.7%
Net income increased 28% to $136 million.
Contents |
[edit] History
CTC Media was founded by an American entrepreneur Peter Gerwe in 1989. In 1991, CTC[[3]] commenced broadcasting as a local channel in St. Petersburg from its first owned-and-operated station. In 1994, it started to operate as a network: it broadcasted its programs from its station in St. Petersburg to a number of cities across Russia. On December 1, 1996 CTC[[4]] became a national free-to-air TV channel. For the first time in Russia, the network of a national channel was structured along the U.S. network broadcasting model. To its regional affiliates in exchange for air time it offered its powerful brand and top-quality programming. CTC[[5]] chooses only the best stations with the largest technical penetration in the region as its affiliates. Together with its partners CTC[[6]] constantly work to improve the technical penetration of its channels.
In addition to the CTC Network[[7]], CTC Media launched the Domashny Network in 2005 and recently have agreed to acquire the DTV Network. These three networks together will include over 600 affiliates throughout the country and over 60 owned-and-operated television stations in Russia’s largest cities.
- The CTC Network[[8]] currently has about 350 affiliates and 19 owned-and-operated stations. The technical penetration of CTC[[9]] is 87%, approximately 100 million people are within CTC[[10]]’s signal reach.
- Domashny’s signal is currently reaches to approximately 63 million people. The Domashny Network has more than 230 affiliates, including 13 owned-and-operated stations.
- As of February 2008, DTV’s signal reached 60% of TNS Gallup measured households nationwide. The channel is distributed through 28 owned-and-operated TV stations in larger Russian cities and a number of affiliates.
[edit] Production
CTC Media has created an in-house production and proprietary program rights management function through the recent acquisitions of two production companies, Costafilm and Soho Media.
Costafilm specializes exclusively on programming for CTC[[11]]. Costafilm provides CTC[[12]] with dramas, sketch shows, TV films and sitcoms. Among its products are the original long-running series Cadets and the original Russian sitcom Daddy’s Girls, both among CTC[[13]]’s most successful recent programs. Daddy’s Girls is the first original Russian sitcom. It is a comedy about a single father and his five daughters. Cadets is an original Russian series about a daily life of boys enrolled in a military school. On many projects Costafilm works in cooperation with the premier TV content producers such as Sony Pictures, Buena Vista, and FremantleMedia.
Soho Media has been operating on the Russian TV market for over fifteen years. It specializes in the production of entertainment TV shows, such as the highly popular Minute of Fame and The Great Race. For the past five years Soho Media worked in close cooperation with FremantleMedia. For CTC[[14]] Network Soho Media adapted Just Kidding Me which is hosted by Russian pop star Glyukoza and produced the original Russian talent search show similar to American Idol.
[edit] Operations in the CIS
CTC Media has recently entered other CIS markets outside Russia: it acquired a majority economic interest in Channel 31 Group in Kazakhstan and registered a new broadcasting company in Uzbekistan – reaching potential audience of over 40 million. CTC Media continues to view the countries of the former Soviet Union as attractive strategic opportunities. It plans to continue to execute on its expansion strategy by extending the reach of its brands to other markets in the CIS that are poised for robust growth and where Russian content is a proven success with audiences.
KAZAKHSTAN
Channel 31 is based in Almaty, Kazakhstan, and has been broadcasting since 1992. The channel is currently the fourth largest in Kazakhstan in terms of audience share, which averaged 7.1% in the second half of 2007, and targets primarily young audiences aged 6-54.
Kazakhstan has significant potential for further growth in the television advertising market and is the third largest among the countries of the former Soviet Union behind Russia and Ukraine. Television viewership is remarkably high among young audiences, with viewers younger than 35 years old comprising nearly half of the total television audience in the country. Thus, CTC[[15]]'s focus on younger demographics provides it with an attractive opportunity to gain audience share. Together with its local partners CTC Media aims to create a new high quality entertainment television in Kazakhstan while maintaining the channels' distinct local appeal.
Broadcasting in the CTC[[16]] format on Channel 31 began in March 2008. The current programming mix consists of CTC[[17]] shows and series (60%), as well as local Kazakhstan programming and foreign content acquired specifically for Channel 31 (40%).
CTC Series. Channel 31 shows most popular CTC[[18]] sitcoms, such as The Nanny and Daddy’s Girls, as well as its original hit series Cadets, all of which underpin strong CTC[[19]] brand and proved to be successful with Russian speaking viewers.
CTC Shows. A number of well-established and newly launched CTC[[20]] shows aired on Channel 31 include The Brainiest, Good Jokes, and Just Kidding Me.
Foreign movies. Just like on the flagship channel CTC[[21]], Channel 31 airs only the best European and Hollywood blockbusters.
Local programs. Locally produced content includes general news (Informbureau) and a number of thematic programs in Kazakh language, including Muzzone (musical program which is among the channel’s top-rated shows).
Other programming includes sports events, such as UEFA matches, and children animated cartoons.
UZBEKISTAN
CTC[[22]] has established a new TV company in Uzbekistan in cooperation with Terra group, a leading independent Uzbek media holding, which is to commence commercial broadcasting in April 2008 on Channel 30. The channel’s programming schedule will include a mix of CTC[[23]] and Domashny content.
With its local partners CTC Media has created a unique national player in a TV market that had been developing in isolation for decades. It has an excellent opportunity to reshape and develop the entire Uzbek TV landscape.
