OREANDA-NEWS. July 05, 2010. The Federal Anti-Monopoly Service (FAS) has released a revised version of the television channel market shares that were originally published in June. REN-TV's share of federal advertising revenue was revised to 4.83%, up from the 0.06% figure cited in the previous document. The other channels' market shares were therefore reduced proportionally. CTC Media's share was adjusted downward by 1%, from 20.4% to 19.4%. FAS is determining channel market shares in accordance with the passage of an amended law that will limit sales houses to a 35% market share, reported the press-centre of OTKRITIE Financial Corporation.

View: The originally-stated figure of 0.06% for REN-TV was surprisingly low given the channel's ratings and advertising revenue provided in the financials of RTL Group, a minority shareholder in the channel. The new figures imply that National Media Group, which owns REN-TV and Channel Five Petersburg, has a power ratio (ratio of ad market share to audience share) of 1.0, compared with CTC’s ratio of 1.5.

Valuation: CTC Media trades at 2010 EV/EBITDA of 10.8x.

Action: We expect neutral market reaction, as the restatement does not have a material impact on CTC.