Russia's rapidly-growing television market is set for consolidation with Gazprom-Media, the country's largest privately-held media conglomerate, agreeing this week to acquire the TV assets of Profmedia.
Interros, the parent company of Profmedia, confirmed it has reached a principal agreement to sell its TV3, 2x2 and Pyatnitsa TV channels, film production company Central Partnership and several FM radio stations to Gazprom-Media. No value was disclosed for the deal, which is expected to be finalised early next year. Profmedia will retain its online assets including Rambler Media, the largest Russian-language internet search engine.
Gazprom-Media is, by most measures, the largest player in Russian broadcasting. Its main broadcasting operations are the NTV and TNT networks, and the NTV Plus pay TV platform. The company also owns radio stations, magazine publishing, film production, cinema exhibition and websites. Reported revenues were RUB52.3 billion ($1.6 billion) in 2012. Profmedia does not report its revenues, but accounts for Prof Media Broadcasting Corporation report operating revenue of RUB 2.2billion ($67 million) in 2012. According to a presentation by the broadcaster CTC Media, Gazprom Media accounted for 22.8% of viewing in the 10-45 demographic in Q3 this year, while ProfMedia was placed sixth with 6.4%. CTC itself was placed second with a 15.9% share, with public broadcasters VGTRK and Channel One and privately-held National Media Group ahead of Profmedia.