|Traded as||NASDAQ: CTCM|
|Industry||Broadcasting, entertainment, TV, TV-entertainment, free-to-air broadcasting, TV-production|
|Key people||Alexander Rodnyansky, president
Anton Kudryashov, CEO
Vladimir Khanumyan], COO
Boris Podolsky, CFO
|Products||CTC, Domashny, Peretz, Channel 31, Costafilm, Soho–Media|
|Revenue||$ 640 million (in 2008), 35.6%|
|Employees||1,472, 26.2% (June 2009)|
CTC Media, Incorporated (spelled “СТС Медиа” - “Es-Te-Es Media” in Russian) is a leading media company in Russia. It owns and operates two national free–to–air TV networks in Russia (“CTC”, “Domashniy” and “Peretz”). 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, Domashiny and Peretz networks for 2007 – 12.9%
“CTC Media” has three shareholders: “National Media Group” (25,2%), “Itera” (25,2%) and “Modern Times Group AB” (39%). 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).
“CTC Media” was founded by an American entrepreneur Peter Gerwe in 1989. Originally named StoryFirst Communications, renamed to CTC Media on 15 September 2004. In 1991, ““CTC” commenced broadcasting as a local channel in Saint Petersburg from its first owned–and–operated station. In 1994, it started to operate as a network: it broadcast its programs from its station in Saint Petersburg to a number of cities across Russia. On December 1, 1996 “CTC” 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 brand and programming. “CTC” chooses stations with the largest technical penetration in the region as its affiliates.
In addition to the CTC television network, “CTC Media” launched the “Domashniy” television network in 2005 and recently have agreed to acquire the “Peretz” television 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 television network currently has about 350 affiliates and 19 owned–and–operated stations. The technical penetration of “CTC” is 87%, approximately 100 million people are within CTC’s signal reach.
Domashny’s signal 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, “Pepper TV”’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.
Costafilm specializes exclusively on programming for CTC. “Costafilm” provides CTC with dramatic programs, sketch shows, TV films and sitcoms. Among its products are the original long-running series Cadets and the first original Russian sitcom “Daddy’s Daughters” “(Russian: Папины дочки)”, both among CTC’s most successful recent programs. 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 Entertainment”, “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 television network “Soho–Media” adapted “Just Kidding Me” which is hosted by Russian pop star “Glukoza” and produced the original Russian talent search show similar to “American Idol”.
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.
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.
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's focus on younger demographics provides it with an 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 format on “Channel 31” began in March 2008. The current programming mix consists of “CTC” 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 sitcoms, such as “The Nanny” and “Daddy’s Girls”, as well as its original hit series “Cadets”, all of which underpin strong CTC brand and proved to be successful with Russian speaking viewers.
Foreign movies. Just like on the flagship channel CTC, “Channel 31” shows European and Hollywood films.
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.
CTC 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 31”. The channel’s programming schedule will include a mix of CTC and Domashny content.