TVN’s financial profile improving

The financial profile of Polish media group TVN has improved this year as the Polish TV ad market has shown signs of stabilisation and recovery, according to analysts.

Credit ratings agency Moody’s noted that TVN has successfully diversified its revenue base, largely thanks to the acquisition of pay TV platform ‘n’, and that it has exceeded expectations in terms of subscriber and financial growth. However, it added that ‘n’ is still a drain on TVN’s cash flow.

Moody’s noted: “The stable outlook reflects Moody’s expectation that TVN will gradually return to sustainable positive free cash flow generation – having taken into account the company’s current dividend policy of distributing 30% of net profits – as the market continues to recover, ‘n’ gradually becomes EBITDA breakeven and improves its cash flow profile.”