CTC Media Heads to Biggest Weekly Fall in Month on Competition

CTC Media Inc. (CTCM), a Russian television company, headed to its biggest weekly decline in a month on speculation its audience and advertising revenue may shrink as Walt Disney Co. (DIS) expands in the country.

CTC Media retreated 1.6 percent to $10.96 at the close of trading in New York, extending its decline this week to 8.6 percent. It was one of three stocks on the Bloomberg Russia-US 14 Index of Russian companies traded in New York that fell today.

Disney agreed to buy a 49 percent stake in a Russian network known as Seven TV that will be renamed the Disney Channel, the Burbank, California-based company said in a statement Oct. 27. Seven TV currently reaches more than 75 percent of Russian homes, including those in the Moscow and St. Petersburg markets. CTC’s channels target a similar audience.

“If Disney is successful in its Seven TV venture, this can potentially lead to a shrinkage of CTC’s audience and advertising revenue,” Alexander Vengranovich, a Moscow-based equity analyst at Otkritie Brokerage, said in a telephone interview. “Disney has a lot of content, a lot of finances, a lot of resources and therefore is a strong competitor to CTC.”

To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.