The FINANCIAL - World Cup Brought Public Broadcaster Twice as Much Profit as the Whole of 2013 

World Cup Brought Public Broadcaster Twice as Much Profit as the Whole of 2013 

World Cup Brought Public Broadcaster Twice as Much Profit as the Whole of 2013 

The FINANCIAL -- Even without the country’s home team being involved, the World Cup set a television viewership record at Georgian Public Broadcaster (GPB). The month-long World Cup was responsible for more than doubled income for GPB, in comparison with the whole of the previous year. The final between Germany and Argentina was the most viewed match in Georgia. 2014 has been a lucrative year for all TV companies. They increased TV ad sales by more than 33% in comparison with the first half of 2013.   

Cash income of the Georgian Public Broadcaster from TV commercials amounted to GEL 850,063.66 including VAT during World Cup 2014 transmission, June 13 to July 13. The figure was GEL 38,781.01, or more than twenty times less, in the prior-year period. 

Total cash income from commercials for GPB was GEL 356,571.89 (including VAT) in 2013. The sum is more than twice less than the profit attracted during the month-long World Cup 2014. 

The highest traffic was shown on 14 June, amounting to 7,094. The most watched game was the German-Argentine match. On average the second match drew in 218,503 viewers. The total audience was 287,093.

“It should be noted that the data rate is based on the people metric methodology of the TV MR GE. Unfortunately this technology does not count the huge audiences that have been watching the matches at clubs, café-bars and other places. During the World Cup the viewing audience of the World Cup was much higher than these figures show,” an official from GPB told The FINANCIAL.

The most popular programme on GPB is Moambe. GPB occupies 11% of the total TV market in Georgia.

GPB does not have fixed rates for commercials. They vary due to different factors, accordingly the broadcaster is unable to supply fixed rates.

Advertising company Betterfly paid the largest volume for commercial services at GPB during World Cup 2014. 

According to TV MR GE, Nielsen Television Audience Measurement’s official licensee, the total profit of Georgian TV companies increased by USD 45,661,383, or more than 33%, during the first six months of 2014 compared with the same period of the previous year.

The total sum of investments made by companies during January-June 2014 amounted to USD 136,518,676, up from USD 90,857,293.

The largest volume has been spent by Mondelez (Barni, Alpen Gold, Jacobs and other products), amounting to USD 9,722,140. It is followed by Geocell - USD 8,126,373; Procter & Gamble - USD 6,820,528; Ludsakharshi Natakhtari - USD 6,249,533; Samsung - USD 3,308,200; Mobitel - USD 3,281,694; Unilever - USD 3,277,062; Mars - USD 3,131,946; Technoboom - USD 3,056,747; and Zedazeni - USD 2,848,721. 

Mobitel was the leading spender on TV commercials during the first six months of the prior year. The company spent USD 4,545,980 last year. It was followed by Kraft - USD 4,382,022; Magti GSM - USD 4,275,551; Procter and Gamble - USD 4,234,544; Ludsakharshi Natakhtari - USD 3,127,450; Bank of Georgia - USD 2,719,910; Mars - USD 2,290,994; Geocell - USD 2,022,747; Samsung - USD 1,958,772; and Henkel - USD 1,746,221.

The largest increase of a TV ad budget in 2014 has been made by Geocell. The company increased its expenditure by USD 6.1 million. Ludsakharshi Natakhtari spent USD 3.1 million more this year than in the prior year. Procter & Gamble spent USD 2.5 million more, and Samsung - USD 1.3 million more. Mobitel was the only company out of the list of the top ten that has reduced its TV ad budget this year, by USD 1.2 million.

In terms of the revenues of broadcasters, two TV stations currently account for 75% of all revenues in the broadcasting sector. In the fourth quarter of 2013, Rustavi 2 reported revenues of GEL 15.2 million (49% of all broadcasters’ revenue), Imedi TV and Radio Imedi reported income of GEL 8.5 million (26% of all revenue). A total of 56 TV and radio stations reported revenues amounting to GEL 30.85 million in the last three months of 2013, according to financial reports submitted to the GNCC. Behind the two leading private nation-wide TV channels, Rustavi 2 and Imedi, Maestro (GEL 2.5 million) was the third largest broadcaster, followed by the Radio Sakartvelo group (GEL 1.3 million) and the pay TV provider Global Media Group - GMG (GEL 1 million).


Author: Madona Gasanova