Poland’s ‘n’ nearing profit

Warsaw-based digital broadcaster TVN has bought 25% of pay-TV platform “n” and has an option to boost that stake to 51%. Channel bosses say they expect “n” to move into profitability sometime next year. But “n” needs more cash before it gets to that position.
TVN’s CFO Karen Burgess reportedly says TVN and partner shareholder ITI are looking to raise further cash for the platform unless the banks stump up further credit. If that cash isn’t forthcoming then TVN will issue bonds to raise the money in order to boost its stake in “n” beyond 51%.

TVN paid $148m for the “n” shares. The operation is $54m in debt. The transaction values “n” at some $590 million, about one-third the value of longer-established rival Cyfrowy Polsat. Cyfrowy Polsat has 2.2m subs, while “n” has a reported 300,000.

The local market didn’t much care for the TVN purchase. TVN’s shares fell 9.3% on May 21, and another 4.5% on May 22.

“N” transmits its pay-TV bouquet on Eutelsat’s Hot Bird platform. It launched in October 2006, and also includes HDTV material within its packages.