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Investment Case For Kino Polska TV

Published 11/11/2015, 11:41

Kino Polska TV (KPL) is a leading producer and broadcaster of thematic TV channels. The company owns one of the largest catalogues with Polish content (movies, serials, documentaries etc.), which it broadcasts on own channels and licenses to third parties e.g. TV channels, VOD platforms. In addition, KPL has access to international movie content (on an exclusive basis in Poland) of its majority shareholder SPI International.

Kino Polska TV SA (WA:KPL) broadcasts channels under the four main brands Telewizja Kino Polska, Kino Polska Muzyka, FilmBox and Stopklatka TV (KPL owns 41% in it), which are either financed by advertising or subscriptions or both. They can be watched on multiple platforms including digital terrestrial TV (DVB-T), satellite & cable, the internet and mobile devices. The FilmBox channel family, which KPL produces, is already available in c. 10 countries in the CEE & SEE region, North- and South America and Asia.

According to wirtualnemedia.pl, thematic TV channels, which already account for >55% of total viewership, increased their share in total TV advertising in 2014 (PLN 3.8bn) from c. 30% in the previous year to 40%. While TV advertising is forecast to grow at 4-5% in 2015, it is widely expected that thematic TV channels (especially those on free and ad-financed DVB-T) will become even more important as (1) they offer viewers access to specialized content with fewer ad breaks (2) often have privileged access to top content and (3) provide advertisers the opportunity to target effectively specific customer groups. Another trend is the growing popularity of video on-demand and streaming services as an increasing number of viewers watch their favorite content online or on their mobile devices instead on a TV.

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