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CTC Media Inc. (CTCM) filed Quarterly Report for the period ended 2011-09-30.
Ctc Media Inc. has a market cap of $1.74 billion; its shares were traded at around $11.08 with a P/E ratio of 10.9 and P/S ratio of 2.9. The dividend yield of Ctc Media Inc. stocks is 7.9%. Ctc Media Inc. had an annual average earning growth of 7.3% over the past 5 years.
This is the annual revenues and earnings per share of CTCM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CTCM.
Highlight of Business Operations:
the software; as well as Russian advertising market analytical services including forecasts, market surveys and research. The compensation fees payable to Video international for use of advertising software, related maintenance and analytical support and consulting services are included in our selling, general and administrative expenses. See "—Critical accounting policies"—Revenue recognition above. The effect of such change in presentation of fees payable to Video International results in an increase in the amounts of both our advertising revenues and selling, general and administrative expense at our Networks and Station Groups as compared to previous periods. When comparing the three months ended September 30, 2010 and 2011, such increase amounted to $16.6 million, including $10.9 million, $2.0 million, $1.2 million, $2.1 million, $0.3 million and $0.1 million in CTC, Domashny and DTV Networks, and CTC, Domashny and DTV Station Groups, respectively. When comparing the nine months ended September 30, 2010 and 2011, such increase amounted to $50.4 million, including $33.8 million, $6.0 million, $3.6 million, $5.8 million, $0.9 million and $0.3 million in CTC, Domashny and DTV Networks, and CTC, Domashny and DTV Station Groups, respectively.CTC Network. CTC Network's advertising revenue increased by 24.2% and 41.7%, respectively, when comparing the three- and nine-month periods under review, of which an increase of 16.1% and 18.4%, respectively, relates to the effect of reporting advertising revenues based on gross amounts billed to advertisers effective 2011, due to changes in our sales structure (discussed above). Net of this effect, CTC Network's advertising revenues increased by 8.1% and 23.3%, respectively, during the three- and nine-month periods under review. When comparing the nine-month periods under review, the increase was mainly due to increases in advertising prices, partially offset by decreased audience share. When comparing the three-month periods under review, the increase was due to the appreciation of the Russian ruble against the US Dollar. Net of this effect, the segment's advertising revenues were approximately flat in ruble terms, reflecting the channel's decreased audience share which offset the increase in advertising rates in third quarter of 2011 compared with the same period of 2010. The average target audience share of the CTC Network decreased from 11.6% to 9.9%, when comparing the three months ended September 30, 2010 and 2011, and from 12% to 10.8%, when comparing the nine months ended September 30, 2010 and 2011. The average overall audience share of the CTC Network decreased from 8.5% to 7.2%, when comparing the three months ended September 30, 2010 and 2011, and from 8.7% to 7.7%, when comparing the nine months ended September 30, 2010 and 2011. The decrease in target audience share was primarily the result of increased competition and the relative underperformance of certain of our programming. See "Item 1A. Risk Factors—A reduction in our audience shares and ratings would likely result in a reduction in our advertising revenues".
Domashny Network. Domashny Network's advertising revenue increased by 45.4% and 48.6%, respectively, when comparing the three- and nine-month periods under review, of which an increase of 17.5% and 17.8%, respectively, relates to the effect of reporting advertising revenues based on gross amounts billed to advertisers effective 2011, due to changes in our sales structure (discussed above). Net of this effect, Domashny Network's advertising revenues increased by 27.9% and 30.8%, respectively, during the three- and nine-month periods under review, principally due to increases in advertising prices. The average target audience share of the Domashny Network was flat at 3.3% when comparing the three months ended September 30, 2010 and 2011, and decreased from 3.3% to 3.1%, when comparing the nine months ended September 30, 2010 and 2011. The average overall audience share of the Domashny Network was flat at 2.4% when comparing the three months ended September 30, 2010 and 2011, and at 2.3% when comparing the nine months ended September 30, 2010 and 2011. The decrease in target audience share when comparing the nine months ended September 30, 2010 and 2011was the result of increased competition.
DTV Network. DTV Network's advertising revenue increased by 41.2% and 45.8%, respectively, when comparing the three- and nine-month periods under review, of which an increase of 16.5% in the three- and nine-month periods under review relates to the effect of reporting advertising revenues based on gross amounts billed to advertisers effective 2011, due to changes in our sales structure (discussed above). Net of this effect, DTV Network's advertising revenues increased by 24.7% and 29.3%, respectively, during the three- and nine-month periods under review, principally due to increases in advertising prices. The average target audience share of the DTV Network remained flat at 2.0% when comparing the three- and nine-month periods ended September 30, 2010 and 2011. The average overall audience share of the DTV Network decreased from 1.9% to 1.6%, when comparing the three months ended September 30, 2010 and 2011, and from 1.8% to 1.7%, when comparing the nine months ended September 30, 2010 and 2011. The decrease in overall audience share over the periods under review was the result of increased competition. As a result of ongoing strategic review of the positioning of the DTV channel, our management initiated changes to the channel's brand identity. Effective October 2011, the DTV Network operates under a new brand—"Peretz".
Television Station Groups. Selling, general and administrative expenses of the CTC Television Station Group as a percentage of this segment's total operating revenues were 18.0% and 23.2%, respectively, in the three months ended September 30, 2010 and 2011, and 18.4% and 22.6%, respectively, in the nine months ended September 30, 2010 and 2011. Net of the effect of reporting advertising revenues based on gross amounts billed to advertisers and reporting compensations payable to Video International in selling, general and administrative expenses effective 2011, due to changes in our sales structure (discussed above), selling, general and administrative expenses as a percentage of this segment's total operating revenues decreased from 27.6% to 23.2% when comparing the three months ended September 30, 2010 and 2011, and decreased from 27.7% to 22.6% when comparing the nine months ended September 30, 2010 and 2011, primarily due to increased revenues and decreases in advertising and promotion expenses as the result of the reallocation of these costs to CTC Network, partially offset by increases in salaries and benefits as result of increased headcount in our sales function.
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