In the second quarter of 2024, Telewizja Polsat recorded PLN 361 million in revenues from TV advertising and sponsorship, 4.8% higher than last year. more than a year ago. The entire market grew stronger – by 5.7%. up to PLN 1.286 billion. This resulted in a slight decrease in Telewizja Polsat’s share: from PLN 28.3 million to PLN 28.1 million.
Over the first half of the year, the changes were similar: Polsat’s advertising revenues increased by 6.2%. to PLN 668 million, and the entire market grew by 7.2%. to PLN 2.378 billion.
Polsat wants to continue to be a leader in television
Telewizja Polsat management believes that it is difficult to achieve significant growth in the television market. – Television is in a very difficult situation globally because everyone has a portable TV with them, Polsat CEO Piotr Żak said during a video conference on Thursday, showing off his smartphone.. Żak has been running the broadcaster since January this year and was appointed permanent chairman in early July.
– Therefore, our most important task is to maintain our position as a leader in the Polish television market. So that as many people as possible can simply come and watch us as often as possible – added Żak.
How will the broadcaster manage to do this in 2024? In the last quarter, the share of its broadcasters (excluding those broadcast in the partner model) in the audience market was 22 percent, just like last year. TVN Warner Bros. Discovery recorded from 23.5 to 23 percent, and Telewizja Polska – from 19.9 to 18.3 percent, mainly due to the decline in the audience of TVP Info (data from Nielsen Audience Measurement).
However, channels outside the three largest broadcasters benefited. The total audience share of stations available via satellite and cable networks increased from 26.5 to 28 percent (including thanks to a sudden increase in viewership for TV Republika, which appeared on terrestrial television in mid-July), and of channels available on digital terrestrial television – from 8.3 to 8.6 percent.
Cyfrowy Polsat has raised its forecast for annual growth in the television advertising and sponsorship market. The company expects its value to increase at a mid-single-digit ratewhereas previously she expected low single-digit dynamics.
What happens after the next TVN sale?
The difficult situation in the television market can be seen in the recent moves by US giants. Warner Bros. and Discovery, which has been experiencing declines in its television segment for several quarters, showed this in its results for the second quarter of this year. made 9.39 billion dollars in amortization and impairments (of which 9.1 billion dollars were related to the TV division), as a result, its net loss widened year-on-year from 1.24 to 9.99 billion dollars. Paramount also decided to make a multibillion-dollar write-down of its television assets.
Warner Bros. Discovery has also been struggling with high debt for more than two years, which, together with the deteriorating results of the television division, has significantly reduced the company’s share price and forced it to restructure. Some content has been sold, HBO productions have been limited in many European countries, including Poland. In early August, the Financial Times reported that the company was considering selling the TVN group.
READ ALSO: Who could take over TVN? Here’s a list of potential buyers
What does Polsat say about this? – We are primarily focused on what we do to make our viewers happy and have as many viewers as possible. We do not know what the competition will do after the acquisition. Maybe it’s better, maybe it’s worse, but we’re absolutely doing our part: we maintain cost discipline, we offer great content to our viewers. – said PiotrŻak.
No record budget for the schedule
Two weeks ago, Telewizja Polsat channels changed their autumn schedules. As we have already described, the main broadcast will feature, among others: the breakfast show “Halo tu Polsat”, the reality show “My Mom and Your Dad” with Katarzyna Cichopek and the military series “Special Forces Poland”.
How much did the broadcaster spend on this? – If we take into account the inflation that has affected us in recent years, this autumn calendar is absolutely not the most expensive in history – admitted Piotr Żak.
– However, it is absolutely true that we are investing and trying new things. This is exactly for the purpose I mentioned earlier: to acquire as many viewers as possible, to maintain our position in this market – he noted.
READ ALSO: Polsat corrects programming. Night band earlier
In the last quarters the entire media division of Telewizja Polsat, including revenues from station distribution, content sales and advertising on online platforms (including Interia), recorded a decline in profitability. In the second quarter of 2024, its EBITDA margin decreased y/y/ by 2.6 percentage points. to 21.9 percent, and EBITDA profit – by 7 percent. up to PLN 145 million.
TRUE quarterly revenues increased by 4%. up to PLN 663 million (the company reported that revenues from advertising and cable and satellite operators increased, while those from the sale of licenses and sublicenses decreased), but operating costs (excluding depreciation, impairment and liquidation) increased most significantly – by 8%. up to PLN 522 millionamong others as a result of higher expenses with own production, marketing and remuneration.
Polsat continues with cost discipline
The Polsat president emphasized that cost discipline is part of the broadcaster’s long-term strategy. – Our costs are adjusted to the effect and our expectations. We will never spend money on content that people do not watch or do not want. We will monitor this cost disciplinemaintain high levels of EBITDA and retain our customers – he announced.
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The entire Cyfrowy Polsat capital group in the second quarter of 2024 with an increase in revenue by 5%. to PLN 3.45 billion (despite the decrease in the number of television service customers) recorded an increase in net profit by PLN 8.1 to PLN 175.5 million. This was facilitated by, among other things: reducing debt service costs.
