ADVERTISEMENT CAKE 2015 Advertising Revenue Survey of the Hungarian Television Market 2015

Transcription

1 Advertising Revenue Survey of the Hungarian Television Market February 2016

2 Methodology follows the practice of recent years. The data used to determine the size of the advertising market was provided directly by television companies, members of the Association of the Hungarian Electronic Broadcasters (hereinafter referred to as MEME). 56 television channels provided data. Data collection and analysis was performed by EY. All collected data have been destroyed after the analysis. Page 2.

3 List of data providers: 56 channels ATV AXN Cartoon Network CBS Reality M1 M2 M3 M4 Sport Sorozat+ Spektrum Spektrum Home Sport 1 Comedy Central Minimax Sport 2 Cool Discovery Channel Disney Channel Megamax* MTV Music Channel SportM* Sport Klub Story 4 DOQ Muzsika Story 5 Duna Duna World FEM3 Film Café Film Mánia Film+ Film+2 FOX Nat Geo Wild National Geographic Nickelodeon OzoneNetwork Paramount Channel PRO4 PV TV* RTL II SUPERTV2 TV Paprika TV2 Universal Viasat3 Viasat6 Viva Galaxy RTL Klub ID Investigation RTL + LifeNetwork Sláger TV * No advertising sales Page 3.

4 Net-net revenue was used for our analysis Net-net revenue, i.e. revenue after deducting discounts and agency commissions, was used. No barter revenue was included. No other revenue data were included (e.g. premium rate calls or text message charges, revenues from events or merchandise). Sponsorship contained revenue from product placement but in the case of sponsored programs it did not contain production costs. All data are presented in million HUF. Page 4.

5 A 51.6 billion adcake in year 2015 Based on the calculation of EY, the total revenue of the television advertising market in 2015 is: 51,581 MILLION HUF The market share of the participating television companies based on television viewership data is approximately 99%.* * Within the age range, 2-26 hours range (data provided by MEME) Page 5.

6 Adcake 2015 (in million HUF and percentage) 22,314; 43% 842; 2% 1,979; 4% Previous terrestrial / Spot Previous terrestrial / Non-spot 26,446; 51% Other (cable) / Spot Other (cable) / Non-spot Page 6.

7 Television advertising revenue increased by 3% Advertising revenue of the last years (million HUF) ,581-6% +10% 50,024 +3% 48,723 45, Page 7.

8 30% growth at the other (cable) channels Television Advertising Revenue by Type of Broadcasting Previous terrestrial vs. Other (cable) broadcasting (in million HUF) ,438 +4% +28% 13, % 17,877 23, ,285-10% +1% -12% 31,678 32,147 28, Previous terrestrial Other (cable) Page 8.

9 Increased advertising revenue share of the other (cable) channels 100% Television Advertising Revenue by Type of Broadcasting Previous terrestrial vs. Other (cable) broadcasting (in million HUF) 90% 80% 70% 13,438 28% 13,950 31% 17,877 36% 23,156 45% 60% 50% 40% 30% 20% 35,285 72% 31,678 69% 32,147 64% 28,425 55% 10% 0% Previous terrestrial Other (cable) Page 9.

10 Non-spot advertising revenue decreased by 4% compared to last year Television Advertising Revenue by Type of Advertisement Spot vs. Non-spot advertising (in million HUF) ,025-4% 43,335 +9% +4% 47,081 48, % +29% -4% 3,698 2,273 2,943 2, Non-spot Spot Page 10.

11 Share of advertising revenue generated by spots increased by 1 % within the advertisement cake 100% Television Advertising Revenue by Type of Advertisement Spot vs. Non-spot advertising (in million HUF) 90% 80% 70% 60% 50% 45,025 92% 43,355 95% 47,081 94% 48,760 95% 40% 30% 20% 10% 0% 3,698 2,273 2,943 2, Non-spot Spot Page 11.

12 Summary In 2015 the television advertising revenue exceeded 51.5 billion HUF. Advertising revenue increased by 1,557 million HUF in 2015, which is equivalent to 3% growth. 55% of the advertising revenue in 2015 is coming from advertising of the previous terrestrial channels and 45% from the ads of the other (cable) broadcasting televisions. Regarding the split of advertising revenue a shift can be observed between the previous terrestrial and other (cable) televisions for the benefit of the other (cable) channels. These channels increased their advertising revenues by 30%. After the 29% increase of non-spot advertising revenue in 2014, this year showed its relapse by 4% compared to the previous year. Page 12.

13 Slide title here Thank you for your attention! Page 13.

14 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com Ernst & Young Advisory Ltd. All Rights Reserved. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com/hu Page 14.