Alliances and economic performance map

By Matina Harkovtakis

Changes, moves, alliances, and high pitches are just a few pieces of the puzzle that make up the local TV landscape. The intense competitive environment as it currently stands has become particularly evident in recent days after a series of reports were published, leading to The advertising war stars the big players in the media landscape.

On one side of the TV table are Mega and Ant1 and on the other side are Nova, Alpha and Star.

The uproar that occurred last weekend after the broadcast of a report in Mega’s news bulletin, which was directed against the United Group (controlled by Nikos Stathopoulos’ BC Partners), the parent group of telecom and pay-TV companies Nova, which caused the force of the latter’s reaction, brought To the surface is a series of processes and fermentations that have been going on all this time in the background.

Recently, TV station owners have been keeping a close eye on economic developments and have acted according to the criterion of their business viability. In this direction, they initiate partnerships with the aim of reducing operating costs and improving their position in the market.

Evidenced that a few months ago, Mega and Ant1 joined forces by creating a joint production company, Oscar Productions, which is a merger of Ant1 Productions and Red Productions, staffed by people from and from both TV stations. It should be noted that there was a commercial agreement between Nova and Alfa at the level of sports content.

Financial performance

In this whole scenario, the financial performance of TV stations is of particular importance. According to the latest published financial data, Antenna TV sales amounted to 97.83 million euros in 2022 from 102.615 million euros in 2021, down 4.7%. In terms of the net result, it remained a loser, closing with an increased loss of €18.6m from a loss of €1.74m in 2021. It should be noted that Ant1 is the only one, to date, of the major channels to publish the balance sheet for the past financial year.

Therefore, with regard to the turnover of Alter Ego controlling Mega, it was formed in 2021 at the group level at 78.841 million euros and at 77.961 million euros at the corporate level, against 48.552 million euros in 2020. Losses closed at 5.113 million euros from Losses 5.866 million in 2020.

Alfa sales in 2021 increased by 18% compared to 2020, at 61.322 million euros. In addition, it managed to limit losses to 17.992 million euros against losses of 25.302 million in 2020.

Star sales amounted to 69.332 million euros in 2021 from 62.036 in 2020, with losses amounting to 2.319 million euros, which decreased by about 500 thousand euros compared to 2020 losses.

Finally, for Nova, the number of TV subscribers in 2021 reached 393,736, marking a decrease of 15.1%. In the same year, revenues amounted to 552.293 million euros, compared to 521.966 million euros, while losses closed at 48.234 million euros, compared to 42.56 million euros. We remind you that the loan obligations of the parent group of Nova United Group amount to 4.56 billion euros, which expanded significantly after the addition of Wind Hellas to the portfolio of group activities.

In order to finance this acquisition, the company proceeded to issue bonds with a total value of €980 million (i.e. the Wind acquisition price). One of €580m at a fixed rate due in 2030 and the other €400m at a floating rate due in 2029.

Mega and ANT1 reports

It is reported that the huge report that provoked Nova’s reaction was titled “Questions About Nova’s Large Investment Remaining on Paper”.

The special report, which appeared in Mega’s main newsletter on 13/07, indicated that the company is facing insurmountable financial problems, as an investment program worth 2 billion euros for the development of optical fibers, as well as the 5G network, which was reported by the United Group as “missing” , 10 months later.

It stated in detail:

“A massive €2 billion investment plan that NOVA was going to put in place is being ignored as the company appears to be facing insurmountable financial problems. 10 months ago, NOVA got €100 million from the recovery fund to lay optical fibers for the fast internet, and history is not done.” Absolutely.

It was in September 2022 when representatives of United Greece, the major shareholder of NOVA, presented Kyriakos Mitsotakis with a €2 billion investment plan for the development of fiber to the home (FTTH) and 5G network.

The infrastructures will be closely linked to the digital transformation of the Greek economy and society. Since then, the United Group’s promising investment plan, which would digitally transform the country, has been ignored.

NOVA, although it received 100 million from the recovery fund, that is, from the European funds for the implementation of the visual month projects, after ten months, no progress has been made.

The question, however, is how the company managed, not only to join the recovery fund, but also how it found financing from two banks, at a time when its credit profile recorded large defaults on Greek banks, causing hundreds of losses to Greek banks. Millions of euros for the banking system.

At the same time, the market is strongly commenting that a company is announcing a huge investment plan of two billion euros, while at the same time it seems that it is facing financial problems.

In fact, it reached this point in order to service its huge debts, which, according to the financial statements for the year 2021, were close to 4.7 billion euros, and it was forced to sell important assets.

Of course, the big question that arises is how a group with high debts, and that does not generate positive cash flows, will be able to implement investment plans of two billion euros, until 2027, especially when it will have increased its loans, in 2024 and 2025.

the ANT1 He “allied” with Mega, presenting the main newscast with reports similar to those of the “Big Channel”, pointing its “arrows” against United Group and its subscription platform.

The ANT1 report also spoke of Nova Group’s exorbitant debts and default on investment in fiber optics, as well as its debts to banks.