TVN prepares for battle

TVN is Poland's third-most-popular television station, and is watched regularly by almost 17 percent of the country, up from 15 percent in 2005. Controlled by privately-owned ITI Media Group, TVN previously forecast its 2006 sales growth at 16-18 percent, from zł.860 million reported for 2005.

"We will close 2006 according to expectations - no unpleasant surprises," said Piotr Walter, the president of TVN. "We expect this year to be good. Despite the growth of competitors, I am optimistic about 2007. Our main goal is to develop faster than the market." To this end, the company plans to build up to four television studios by the end of 2008.

"Analysts forecast the growth of the television advertising sector at 10-15 percent in 2007," Walter added. However, TVN will have to fight hard for a slice of the market. In June last year, Rupert Murdoch's News Corp bought a 25-percent stake in terrestrial broadcaster TV Puls and announced plans to expand the station. Axel Springer has also announced its intention to buy 25 percent of Polsat, Poland's second-biggest private station, for EUR 250-300 (zł.950-1,140) million.

"I cannot rule out that we will be feeling competitors' breath on our neck in two years' time," Walter admitted. For the moment, TVN has the confidence of the markets - its shares have risen sharply in the last six months, and are up more than 40 percent since July. (Reuters)