CTC Media posts 2Q 2011 net profit of $38.5 million

Russian TV media operator CTC Media has posted a 2Q 2011 net income of $38.5 million under U.S. GAAP.

The bottom line is up 84% from the 2Q 2010 net income of $20.9 million, with 2Q 2011 OIBDA increasing 82% year on year to $66 million, on the back of total operating revenues rising 57% to $204.5 million from $130.5 million posted in 2Q 2010.Anton Kudryashov, Chief Executive Officer of CTC Media, said the company’s financials reflected growing popularity of TV advertising in Russia, as well as success of the new TV projects.“We have fully captured the growth in the Russian TV advertising market in the second quarter, with healthy demand levels and rising prices for our premium audiences. Our national Russian TV advertising market share and blended power ratio have remained stable despite the higher audience shares achieved by the smaller non free-to-air TV channels. Our Russian channels were 100% sold-out in the second quarter, and are now over 90% sold-out for the full year at significantly higher prices than in 2010.The Russian Spring schedule performed well while our key formats were on air, and our soon to be launched Fall schedule includes prime-time premieres across various genres including original productions, adaptations of successful international formats, and new seasons of hit series. In addition, we will refresh the DTV format with a new programming and communications platform in October. Channel 31 in Kazakhstan has performed ahead of expectations with substantially increased ratings driving a 68% year-on-year increase in CIS revenues in US dollar terms.”Kudryashov also expected that FY results of CTC Media will follow this upward trend, noting that they are expanding the scale of investment.“The investments that we have made in our internal sales house and state-of-the-art broadcasting facility will ensure that we are well-positioned to capitalize further on the growth and development of the Russian broadcasting industry. The new play-out facility, which is the first of its kind in Russia, is able to programme and broadcast up to 21 independent channels and meet all of the Company’s broadcasting requirements from a single location. The facility’s flexible cross-platform distribution and content digitalization capabilities will also contribute to the growth of Videomore, which has already attracted 10 million unique users.”