CME: Ad Spending in Bulgaria Down by 12% in 2010

Central European Media Enterprises Ltd., which bought Bulgaria's first national private television bTV earlier this year, has forecast that ad spending in Bulgaria will fall by 12% in 2010.

"TV add spending in 2010 did not match our expectations for recovery. Therefore, the whole year will be challenging," Chief Executive Adrian Sarbu said in a conference call.

"Overall, the second half of the year will show positive trends, but the take-off will be slow."

Market recovery started in the Czech Republic and Slovenia in the second quarter, and will begin in the second half in Slovakia and Croatia, CME said.

The broadcaster forecast ad spending to fall on average 3% in its six markets for all of 2010.

Earlier in the week Central European Media Enterprises Ltd. said its revenues rose 10.3% to USD 201.7 M in the second quarter as the Bulgarian acquisition offset a slump in ad income.

News Corporation completed the sale of the largest Bulgarian private TV station, bTV, to Central European Media Enterprises in late April.

Rupert Murdoch’s News Corporation sold bTV for a total of USD 400 M plus a payment of USD 13 M for a working capital adjustment to Central European Media Enterprises owned by another tycoon, Ronald Lauder.

Under the terms of the agreement, CME will acquire 100% of the terrestrial free-to-air TV channel, bTV. It will also take control of the two genre channels, bTV Comedy and bTV Cinema, along with News Corporation’s 74% interest in Radio Company C.J which operates five radio stations.