CTC looks to the future

Russia’s CTC Media has posted relatively encouraging results against the backdrop of uncertainty over its future ownership.

Q3 revenues were up 3% year-on-year in ruble terms to $158.6 million, while OIBDA rose by 9% in ruble terms to $50.6 million.

However, net income was down by 24% in ruble terms to $31.6 million.

In her comments on the results, Yuliana Slashcheva, CEO of CTC Media, said that the broadcaster is “evaluating a potential transformation” of its channel Peretz.

She also spoke positively about the new structure of Video International, the leading TV ad seller in Russia, despite the company having its own sales house (Everest).

CTC Media cooperates with the ‘new VI’ and will look to do so even further in the future.

Commenting on the new legislation that will place a 20% foreign ownership limit on Russian media companies, she said that CTC Media’s future actions “may include corporate restructuring, franchising and licensing structures, capital reorganisation or divestments”.

MTG considering Raduga TV sale

Modern Times Group (MTG) may sell its stake in the DTH platform Raduga TV now that President Putin has signed off controversial legislation limiting foreign ownership in Russian media companies to 20%.

Speaking to Broadband TV News, Per Lorenz, head of group public relations at MTG, said the company is exploring all options available to it.

Meanwhile, Interfax has reported that the Federal Antimonopoly Service (FAS) has given the green light for Digital Broadcasting, which is owned by Sistema Mass Media, to acquire 100% of DalGeoKom (Raduga TV). A source told the agency that Digital Broadcasting is considering the purchase of Raduga TV as part of the satellite broadcasting strategy of the AFK Sistema group of companies but that no decision has yet been made.

Interestingly, another Sistema group member – MTS, a leading mobile company and pay-TV provider – is also eyeing Raduga TV. It was expected to launch its own DTH platform recently but it is has yet to make its debut.

Raduga TV is currently jointly (50%) owned by MTG and Continental Media.

The change in the law will also affect CTC Media, in which MTG owns a 37.9% stake.

In a statement on the company’s website, Jørgen Madsen Lindemann, MTG president and CEO, said: “This is obviously a complex situation and we are working closely with local management and our advisers to review the various options available to us moving forward. It is too early to come with a solution for each of the affected businesses, but we are looking at a range of potential outcomes. We have built up these entertainment businesses over 20 years and the channels are some of the most watched in Russia, so we will do all that we can to preserve the interests of all of our stakeholders.”

CTC Media looks to Hulu

Russia’s CTC Media is close to reaching an agreement with Hulu to have some of its shows distributed online in the US.

Quoting CTC Media’s CEO Yuliana Slashcheva, Bloomberg reports that shows would be subtitled in English and offered on both the Hulu and Hulu Plus services. She added that final terms of a deal are now being discussed, with Russia’s state-run cinema agency also involved in the talks.

Slashcheva also said: “co-operation with Hulu is a serious precedent for Russian producers of original content.

“This will allow us not only to monetise our content on a new platform, but paves a way for promoting our original formats such as Molodezhka in international markets.”

CTC Media is backed by Modern Times Group (MTG) and one of the leading commercial broadcasters in Russia.

Hulu meanwhile operates a free ad-supported service of the same name with around 30 million users each month.

Its paid-for Hulu Plus service has around 6 million users.