TVN Soars as Deutsche Bank Sees Ad Market Rebound: Warsaw Mover

TVN SA, Poland’s second-biggest television network, jumped to a two-year high as Deutsche Bank AG recommended buying its shares, citing prospects for a rebound in the domestic ad market.

The shares advanced 6 percent to 15.24 zloty in Warsaw, the highest level since October 2011, extending this year’s gain to 54 percent. Warsaw’s all-share WIG Index has climbed 10 percent this year. Deutsche Bank set TVN’s share-price estimate at 17 zloty in resumed coverage.

“We see the company as a leveraged play on the expected recovery of the TV advertising market, which we believe has seen its trough in the first half of 2013,” Tomasz Krukowski, an analyst at Deutsche Bank in Warsaw, said in a note yesterday.

The refinancing of high-yield debt last month when TVN sold 430 million euros ($583 million) of bonds due in 2020 will “result in significant financial charges in 2013” and “should halve interest expenses in 2014 versus 2012,” he said.

The Polish ad market is improving and has “reached a bottom,” TVN Chief Executive Officer Markus Tellenbach said on Aug. 22. Deutsche Bank expects the market to increase 6% in both 2014 and 2015 after declining this year and in 2012.

To contact the reporter on this story: Piotr Bujnicki in Warsaw at

To contact the editor responsible for this story: Wojciech Moskwa at

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