Gazprom-Media Holding’s net profit reaches 5.7 billion rubles in first half of 2021

On August 27, Gazprombank published its financial results for the period January-June 2021. The “Media Business” segment shows the key indicators for Gazprom-Media Holding in the first half of 2021 and the second quarter of the year, in comparison to the same time periods in 2020.

Key financial indicators for January-June 2021:

●    Consolidated revenues of the “Media Business” segment increased by 33% to 56.9 billion rubles due to an increase in advertising revenues and revenues from the sale of rights to audio and video content reproduction. 

●    Advertising revenues increased by 34% to 40.7 billion rubles due to an increase in advertising revenues on Gazprom-Media Holding’s mainstream and special interest TV channels due to the recovery of the advertising market and the return of sports competitions that were cancelled or postponed as a result of the pandemic in the second quarter of 2020. Moreover, thanks to the launch of several new projects and new series seasons, the total share of Gazprom-Media Holding’s TV channels in the forward-thinking audience aged 14-44 increased from 25.8% to 26.5% in the first half of 2020.*

●    Revenues from the sale of rights to audio and video reproduction increased by 34% to 9.7 billion rubles. This growth was driven by a partial recovery in film distribution in the second quarter of 2021, as compared to its total absence in 2020. The increase in revenues from the distribution of Red Media’s special-interest channels and GMP Match sports channels also contributed to revenue growth in this area.  

●    Operating profits for the first half of 2021 added up to 6 billion rubles as compared to an operating loss of 184 million rubles for the same period in 2020. The “Media Business” segment also showed a net profit of 5.7 billion rubles. A year earlier it had a net loss of 1.3 billion rubles. These positive operating and financial results stem from the quick growth in advertising revenues, the recovery of business activity on the market, and the effective management of consolidated expenses, whose growth is significantly lower than the growth of consolidated revenues. Consolidated expenses increased by 18% as opposed to the 33% growth in revenues. Gazprom-Media Holding’s television business also made a big contribution to the operating and net profit.

Key financial indicators for April-June 2021:

●    Consolidated revenues increased by 61% to 28.7 billion rubles due to the growth of advertising revenues and revenues from the sale of rights to audio and video content reproduction.

●    Advertising revenues increased by 53% and added up to 20.9 billion rubles due to the growth of advertising revenues on Gazprom-Media Holding’s mainstream and special-interest channels. The successful launch of several premieres on the Holding’s TV channels, the return of major sports competitions (UEFA Euro 2020) and the overall recovery of business activity on the market, which slumped in the second quarter of 2020, had a positive effect on advertising revenues. In addition, the total share of Gazprom-Media’s TV channels among the commercially attractive audience aged 14-44 increased to 26.4% in the second quarter of 2021 as compared to 25.7% in the second quarter of 2020.

●    Revenues from the sale of rights to audio and video content reproduction doubled to 4.5 billion rubles from 2.2 billion rubles in the second quarter of 2020. The partial recovery of film distribution was the key growth factor in this case. Film distribution was missing completely in the second quarter of 2020, but from April to June 2021, the Central Partnership film company released nine films in movie theatres including A Quiet Place 2, Spiral, Chernobyl, and Prababushka Lyogkogo Povedenia (Great-Grandmother Behaves Badly), all of which had good results at the box office. 

●    Operating profit added up to 2.4 billion rubles as compared to the previous year where there was an operating loss of 1.8 billion rubles. Net profit was 2 billion rubles as compared to a net loss of 2.2 billion rubles in the first quarter of 2020. 

* Mediascope, Russia, cities with a population over 100,000 people, time periods 01.01.2021-30.06.2021, 01.01.2020-30.06.2020; audience “14-44” for TNT, TV-3, Friday!, audience “Women 18-45” for Subbota!; audience “Men 14-59” for Match TV; audience “18+” for NTV. Average share indicator (%), rating (%). 

Match TV 

The share of Match TV in the target audience of men aged 14-59 increased by 78% and reached 3.4% based on the results of the first half of 2021 (the share was 1.9% in the first half of 2020). In the second quarter of 2021, the channel’s share increased by 260% and reached 3.8%. The audience growth stems from the return of major sporting events. As a result, the channel’s share exceeded the figures for sports TV in 2019. Match TV continued showing the Euro Hockey Tour in the first quarter of 2021. The channel’s viewership share for the Swedish stage was 6.6%, which is higher than the indicators for the first quarter of 2020 (4.5% share). In the second quarter, the channel broadcast the final stage of the IIHF Ice Hockey World Championship. The matches featuring Russia’s national team had peak share values. The average share of three such matches was 15.1%. On June 28, Match TV showed a live broadcast of the Euro 2020 Round of 16 match between Spain and Croatia. It aired with a share of 23.5%.

NTV 

The second season of the show Maska (The Masked Singer) was the highlight of NTV channel’s programming in the first half of 2021. These broadcasts made the channel a leader in Sunday primetime and increased TV viewership. The share of Maska’s second season was 19.7% and the rating was 6.5%. The program had record shares in April: 21% is the share of all episodes that aired that month. The season finale (May 2) had a share of 25.9% (7.9% rating) and broke the absolute record for all TV program shows in 2021. The premiere of the show Ty Super! 60+ (You are Super! 60+) (May-June) had a share of 10.4%, while the show’s final episode (June 20) aired with a share of 11.1%. NTV successfully aired its new TV series Zapovedny Spetsnaz (Nature Reserve Spetsnaz) in the evening primetime starting on March 22. The share of all episodes was 10.0%, while the share of one of the first episodes was 13.1%. TV viewers are consistently drawn to NTV’s Saturday primetime lineup: Tsentralnoe Televidenie (Central Television) got an average share of 12.1%, the average share for Ty ne Poverish! (You Won’t Believe This!) was 11.7%. Sunday’s Itogi Nedeli s Iradoi Zeynalovoy (Weekly Summary with Irada Zeynalova) had a share of 13.1% and remains one of the most popular information and analytical programs. Novye Russkie Sensatsii (New Russian Wonders) and Sledstvie Veli… S Leonidom Kanevskim (The Investigation was led by… with Leonid Kanevsky) continued to lead among society and journalistic programs. The top episode of Novye Russkie Sensatsii had a 15.2% share (4.9% rating), while the top episode of Sledstvie Veli… reached a share of 15.5% (4.6% rating).

TNT 

TNT channel’s share in the first half of 2021 was 8.4%, which is 3% more than in the first half of 2020. The channel also showed growth in the TV viewership share for the second quarter of 2021: 8.1% as compared to 7.9% in the second quarter of 2020. As of now, TNT aired about 30 new projects or seasons of older shows. Six new TV series and seasons aired in the second quarter, among which were series that made the channel a weekday primetime leader: second season of Zhuki (Bugs, 17.1% share), Militsioner s Rublyovki (The Policeman from Rublyovka, 13.9% share), second season of Mir! Druzhba! Zhvachka! (Peace! Friendship! Chewing Gum!, 11.6% share), and Legenda (Legend, 9.7% share). Broadcasts of the new show Muzikalnaya Intuitsiya (Musical Intuition, 10.3% share) wrapped up in May. The channel also aired the new seasons of Comedy Club (12.5% share), Comedy Battle (10.5% share), Zhenskiy Stand-Up third season (Women’s Stand-Up, 13.2% share), Gde Logika? (Where is the Logic?, 11% share), Dvoe na Million (Two for a Million, 9.2%), and Improvizatsia (Improvisation, 9.2% share)

TV-3 

The viewership share of TV-3 channel in the first half of 2021 was 4.4%, which matches the numbers from the previous year. The channel’s share increased to 4.6% in the second quarter of 2021, as compared to 4.5% in the second quarter of 2020. In April, TV-3 showed its highest monthly share - 4.7%. This was thanks to the marathon screening of two seasons of the series Chernobyl. Zona Otchuzhdeniya (Chernobyl. Exclusion Zone), which got a share of 5.9% for the first season (April 18) and 5.8% for the second season (April 25), as well as the screening of the film Chernobyl. Zona Otchuzhdeniya. Final (Chernobyl. Exclusion Zone. Finale) with a share of 6.1%. The third season of the reality show Posledniy Geroy (The Last Hero) wrapped up in the second quarter, in May, with an average share of 5.2%. Several other shows that started airing in the first half of 2021 also had good viewership shares: Sekrety (Secrets, 6.4% share), Starets (Old Man, 5.8% share), Vrachi (Doctors, 5.8%).

Friday!

Friday! TV channel’s viewership share increased by 2% in the first half of 2021 and added up to 4.3%. New seasons of the popular programs Mir Naiznanku. Pakistan (The World Inside Out. Pakistan, 6.6% share), the sixth season of Na Nozhah (Knives Out, 7.5% share) and the fifth season of Konditer (Confectioner, 5.4% share) aired in the channel’s premiere slot at 19:00 during the second quarter of 2021. The channel also successfully aired the series Cherniy Spisok (The Black List, 6.3% share) and the series of its own production, the second season of Dve Devitsy na Mely (Two Girls on the Rocks, February-March, 4.5% share) and Al-Kapotnya (4.1% share). The weekend viewership share of Friday! TV channel increased by 10% to 4.1% in 2021 from 3.7% in 2020.

Subbota! 

The channel’s viewership share for the first half of 2021 was 1.5% among the audience “Women 18-45”, which is 56% higher than the share Super TV channel had for the same period in 2020. The channel’s share grew during the year’s first half and reached its peak indicators in April 2021 - 1.8%. This growth stems from the channel’s ability to attract the target audience by airing popular TV series Wild Angel and Charmed, as well as the successful launch of several new projects of its own production. These include the programs Moya Zhena Rulit (My Wife Rules, 1.7% share), Boginya Shopinga (Goddess of Shopping, 1.6% share) and Say ‘Yes’ to the Dress! (1.1% share).

TNT4 

The channel’s share increased by 34% in the first half of 2021 and reached 1.1% as compared to the same period last year. TNT4 also showed growth in the viewership share during the second quarter of 2021. New episodes of popular shows aired in May: the YouTube show Chto Bylo Dalshe? (What Happened Then? 1.1% share, first episode aired on May 1 with a record share of 2.1%), Ya Sebya Znau (I Know Myself, 1.3% share), Outside Stand Up (1.3% share). The channel also aired new episodes of the show Prozharka (The Roast), which had a share of 1.7% for two episodes. The episode featuring popular rapper Basta attracted the most viewers (2.3% share). The new film Batya aired on TNT4 on June 20 with a share of 1.5%.