Tele 5 is broadcasting its intentions to investors
Fincast is backed by Bank Pekao's Access, a corporate financing company, and CDM Pekao, the bank's brokerage. "They are telling us that the reaction to our plans are encouraging," Hemsi said. Surprise, surprise But Mirosław Szulc, Pekpol's chief executive officer, told the WBJ that Fincast's decision came as a complete surprise to him. "We had detailed agreements signed, and we believed everything would go smoothly," he said. "I really don't know how they are going to finance their operations now. Obviously, they must have something up their sleeve. I don't think they would come back to us (since) we're now planning a transaction with (insurance company) Daewoo Towarzystwo Ubezpieczeniowe." Analysts are also skeptical about Fincasts's plans for a debut on the stock exchange. "Of course, there could be investors willing to buy their shares, but only if they are able to prove they're worth something and they can achieve something," said Andrzej Szymański, an analyst at Dom Maklerski BIG Bank Gdański. "Investors would be very cautious when evaluating the company. Good plans alone won't be enough. They've been on the market for some time, and they will have to show some good results."
Watch me Tele 5, which is available through cable and satellite access, has poor ratings. Its maximum audience share since its start in April has been 0.3%, according to the market research company AGB Polska. Fincast's goal, according to Hemsi, is to reach a 4% audience share in the next two to three years. Good results for Tele 5 are feasible, he said. "We're talking about (the company's) credibility," Hemsi said. "It's based on many factors, though. Beside the fact that (we're) a new and young company, what counts in the media industry is people, and thus the capacity of making successful television and good results in the end. Our team is recognized as one of the strongest (on the market) with people who had worked for (TV stations) TVP, RTL7 and Wizja TV, so we have the capacity to making successful commercial television."
"The business plan is secured" Hemsi was optimistic about financing the company before it floats on the WSE. "The business plan is secured via instruments we already have in place," he said. Fincast received a bank loan from Bank Pekao, which is controlled by UniCredito Italiano. Hemsi, who wouldn't say how much Pekao had lent him, is also talking to private banks in Italy. The financial involvement of Simest, a joint-stock company controlled by the Italian Foreign Trade Ministry that was established to promote Italian businesses abroad, has also helped secure Tele 5, he said. Simest had invested more than $2.7 million in Tele 5 before its April launch, Hemsi said. Orsola Recchini of Simest's press office declined to say how much the company had invested in Fincast to date.
"They're cheap" Meanwhile, advertisers are not especially interested in Tele 5, according to mediahouses. "They are very active in terms of marketing and sales, but I can't see any serious interest in this station among customers," said Marcin Bogłowski, the head of the TV department at MediaCom mediahouse. "It's true they're cheap and (that's) an asset, but they need time to work on their brand awareness among advertisers. Definitely their audience share has to rise because no client would (invest) big money in a station with a 0.1% audience share." Hemsi said that an increase in Tele 5's audience share would be possible thanks to an improved technical reach for the station. "We're potentially reaching 10 million subscribers now, but our goal is to reach 14 million by September this year," he said. "The increase of audience share will also be possible thanks to growing awareness of the brand." Fincast is planning an ad campaign to promote the station in the fall. "It will be a kind of a cross-promotion done with the media companies we are cooperating with in the production of TV programs," Hemsi said. "This time we'll promote specific products of Tele 5, not the station itself."
