CTC Media Inc. (CTCM), the owner of Russia’s fourth-largest television channel, rose on speculation revenue will increase after Prime Minister Vladimir Putin said state television should stop running advertisements.
“State television should give up advertising and it should be replaced by some other content,” Putin said at a March 1 meeting with supporters in Moscow, Komsomolskaya Pravda reported on its website.
CTC led advances on the Bloomberg Russia-US 14 index this week, climbing 7.2 percent to $10.94 in New York after rising 0.8 percent today. An end to ads on state television may boost revenue at CTC as companies look for other outlets to showcase their products, Vladimir Kuznetsov, an analyst at UniCredit SpA in Moscow, said today in an e-mailed note.
“If Putin’s wish is implemented, this potentially would seriously boost CTC Media’s pricing power, as currently state- owned and controlled channels have over 40 percent of the $4.4 billion-a-year TV ad market,” wrote Kuznetsov, who rates the stock “buy” with a price target of $17.10 a share.
Putin’s office didn’t answer a telephone call seeking comment after the close of normal business hours in Moscow.
To contact the reporter on this story: Halia Pavliva in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net