Polish broadcaster TVN Q2 loss misses market forecasts

Losses on eurobonds from zloty weakness pushed Polish broadcaster TVN to a wider-than-expected second-quarter net loss despite brisk top-line growth as the television ad market recovers. Shares in Eastern Europe's largest listed broadcaster slipped 0.8 per cent on Thursday after it swung to a loss of 98 million zlotys ($31.5 million), hit mainly by the non-cash losses on its eurobonds. Analysts polled by Reuters had on average expected a loss of 76m zlotys after a profit of 149m a year earlier.

Poland's television advertising market rose by 8 percent in the second quarter, with TVN group sales up 13 per cent to 658m zlotys, beating the 637 million seen by analysts. "The market showed a healthy rebound with television advertising market growing by 5.4 percent in the first half of the year," Chief Executive Markus Tellenbach told a teleconference with reporters. "Visibility is still low, and therefore we maintain our guidance for a low-single-digit rise for the TV ad market this year." Like other broadcasters in the region and globally, TVN has struggled to come back from last year's advertising gloom caused by the economic slowdown. The group's top line also benefits from rising sales at its pay-TV platform 'n', which ended the second quarter with its first positive EBITDA (earnings before interest, tax, depreciation and amortisation) of 0.8m zlotys.