Heaven scent offer for ITV shareholders ?

Central European Media Enterprises (CME) (listed on NASDAQ ; CETV and Prague) controls 10 TV stations from a London base covering a population of 90 Mn with a combined GDP of US$400 Bn.;

Czech Republic - TV Nova , Galaxie Sport
Slovak republic - TV Markiza
Slovenia - Pop TV, Kanal A
Ukraine - Studio 1 + 1
Croatia - Nova TV
Romania - Pro TV, Acasa TV , Pro Cinema

The 12 year old company has been built up by cosmetics heir Arnold Lauder ( he owns 17% of shares by value but 67% voting rights).

CME was/is committed to Ronald Lauder’s ideology that newly-democratized nation states of the former Soviet bloc were hungry to view, and ready to support, independent television broadcasting. Prior to CME’s arrival, the region had state-controlled broadcasting monopolies and therefore state controlled information.



Advertising spend of US$11 per head of the population lags way behind the Western European average of US$72 per head, but is fast catching up.

All the stations show a healthy share (approx 25%) of the top 10 European advertisers - many of them American brands , Colgate, Johnson & Johnson, P & G, Coca Cola, Kraft and with a product aimed at their youthful free spending aspirational market worldwide, Wrigley Chewing Gum. Other leading brands include Danone,Renault, Samsung, Orange and Mobitel. The major markets are Food, Cosmetics, cleaning materials and Telecoms, compared with say the UK with Finance, Cars and Entertainment being the biggest markets. CME say "Mature markets sell cars, we sell soap !"

It is said that the CME London offices on the Aldwych have been busy with executives eyeing spreadsheets and scribbling numbers on the back of envelopes dissecting ITV - who produce their figures soon, and whose CEO is almost out the door and have to face press comment today in the Times and where else saying revenues to Christmas are down 12/14/15/ even 20%.

Yet another bid for ITV in the offing ?