Daily analyst comments
O2TV Channel releases 1H2010 financials
30.07.10 10:39
Despite the razor-thin margin posted, the results reveal the considerable progress made. We underscore a more than 2x revenue growth and the return to profit in the reporting period.
On July 28, the youth channel O2TV disclosed consolidated financial results for 1H2010 according to RAS. The company also accounted for 2H2009, the period from which consolidated financials have been released. Revenue in 1H2010 rocketed 135% to RUB 21.8 mn, with the bulk, or 89%, derived from commercials. Another 8% came from sponsors . The TV channel also reported an 8x surge in costs, attributable to hikes in payroll costs and depreciation deductions. As a result, gross income declined 8% to RUB 6.8 mn and gross margin shrank from 79% to 31%. The reporting period ended with a net income of RUB 58,000, compared to a net loss of RUB 7.9 mn in 2H2009.
O2TB: financial results for 1H2010, thou RUB
Although the results posted look unimpressive, on account of a razor-thin net margin of 0.2%. We note the considerable progress made from the previous six-month period. The more than 2x revenue growth reveals keen interest in the TV channel from advertisers. We also emphasize that net loss has given way to profit, even though a small one. We deem the results reported encouraging, which should spur investor interest in the company.