Moldova Media Landscape 2017-2018

TV dynamics
@ MEDIA LANDSCAPE
FEW WORDS ABOUT MOLDOVA

- MOLDOVA A PARLIAMENTARY REPUBLIC

- PRO EUROPEAN GOVERNMENT

- PRO RUSSIAN PRESIDENT

- 2,9 MLN. PEOPLE (BASED ON 2014 CENSUS, WITHOUT TRANSNISTRIA)

- 61% LIVES IN RURAL AREA

- 45% WANT CLOSER TIES WITH EU / 45% WITH RUSSIA

- GDP 6,3 BILLIONS €

- INFLATION 5,8% (FORECASTED FOR 2018)

- 1 EUR = 19,5 LEI

GENERAL OVERVIEW/ ECONOMY TRENDS

SALARY IN MDL (USD), YOY INFLATION RATE, %

Average salary Subsistence minimum Average salary (USD)
6000 $400
13.6
$367
5000

5,084 5,300
$290 $299 $2864,610 $299 $297 $300
4000

4,172 $253
3,765 6.3
3000
3,477 6,138 $200
5.2
4.7
4.1 4.0
2000
3.0
1,725 1,814 1,866 1,948 $100
1000
1,457 1,608 1,668
0 $0

2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018*f

Despite the average salary increase by 16% (in local Inflation rate has returned to normal with a forecast of
currency), salary in Moldova remains the lowest among 3% in 2018
other European countries.

Source: National Bureau of Statistics of Moldova, 2017; *f – forecast

MOLDOVA MEDIA MARKET SPECIFICS

TV – most transparent Media, with

highest SOS (53% of the media market)
Moldova media
market specifics 2017 Moldova Ad Market share of billings by media
Radio
Press 4%
5%

Digital
17%

TV
OOH 54%
20%

Source: AGB Moldova 2017; Association of Advertising Agencies

2017; Suppliers info & Agency estimations;

Digital – Measured, but not monitored,

all financial data are estimations
Other media – Almost no measurement
and monitoring (all data are
estimations, based on suppliers data)
DIGITAL THE MAIN % GROWTH DRIVER, BUT TV STILL THE LEADER
AD. MARKET STRUCTURE IN MLN. EURO (YOY,%):
30.0 €
Digital OOH Press Radio TV

25.0 €
2018*f vs. 2017
14.8 €
13.7 € 14.5 € 12.4 € 13.31 €
11.5 € 12,4 € +0,9 mln. euro +7%
20.0 €

-0,2 mln. euro -15%

15.0 €

0.9 € 0.9 € 1.2 € 1.2 € 1.2 € 1,0 € 0,9 € -0,2 mln. euro -15%
10.0 € 0.9 €
2.5 € 2.0 € 1.3 € 1.2 € 1.1 €
2.5 €
4.6 € -0,3 mln. euro -7%
4.8 € 4.5 €
5.0 € 5.5 € 5.2 €
5.7 €
5.5 €
3.8 € 4.6 €
2.7 € 3.3 € +0,8 mln. euro +20%
1.2 € 1.6 € 2.1 €
0.0 €
2012 2013 2014 2015 2016 2017 2018*

DIGITAL SPENDS – BIGGEST GROWTH EXPECTED

Source: AAPM; Budgets without VAT, after discounts; without political advertising; *f – VivaKi Moldova estimations based on media channels dynamics
MOLDOVA AD MARKET DRIVEN BY CONSUMPTION

GDP DYNAMICS (YOY,%) REMITTANCES VS. TOTAL TV MARKET SPENDS (MLN. EUR):
14.8 14.5
8.9% 13.7 13.7 2.00

14.00
12.4 12.4 1.80

12.00
11.5 1.60

1.32
10.00 1.16 1.21 1.18 1.20 1.40

1.11
0.97
1.20

8.00
4.6% 4.5%
1.00

6.00 0.80

3.0% 4.00
0.60

2.0%
0.40

2.00
TV ad market spends Remmittances 0.20

0.00 -

2012 2013 2014 2015 2016 2017 2018*f 2012 2013 2014 2015 2016 2017 2018*f
-0.7% -0.5%

REMITTANCES – HIGHER
CORRELATION WITH AD
ACTIVITY DYNAMICS

Source: National Bureau of Statistics of Moldova, BNM; *f – forecast

 INTERNET BECOMES THE FIRST MEDIA (BY CONSUMPTION)
MEDIA CONSUMPTION DYNAMICS (2015-2018):
100% 2
6 5 9 10
6 18 15 16 14
7 5
4 5 Don't use
80% 25 19 10 3 39
15 46 44 46 44
17 11 51
11 15
15 60

60% 48
Monthly
5 4
8
7 30 21
16 14
40%
70 70 70 21 13 Weekly
68 68 68 65 13
61
30 27
20% 37 24
36 20
26 30
Daily
7 7 8 7
0%
2015/1 2016/1 2017/1 2018/1 2015/1 2016/1 2017/1 2018/1 2015/1 2016/1 2017/1 2018/1 2015/1 2016/1 2017/1 2018/1

TV Online Radio Press

More people become

light viewers or don’t High volume of heavy users and
watch at all decreasing SHR% of online non-users

Source: X-Plane 2015/1 - 2018/1; TA: 18+ Urban (xPlane measures only Urban audience)
TV MEDIA LANDSCAPE
THE VOLUME OF TV MARKET IN MOLDOVA
Mln.
350.0
DYNAMICS OF MEDIA INVESTMENTS IN TV MARKET (.LEI AND €)
320.4 MDL

300.0
275.7 MDL
266.6 MDL 260.3 MDL
253.8 MDL
250.0 239.5 MDL
227.0 MDL

200.0
+3% in .lei
(vs.2017)
150.0

100.0
+7% in €
(vs.2017)
50.0
13.7 € 14.8 € 14.5 € 12.4 € 11.5 € 12.4 € 13.3 €
0.0
2012 2013 2014 2015 2016 2017 2018*f

TV MARKET STALLED FOLLOWING A DECREASE IN 2015

NO BIG CHANGES EXPECTED FOR 2018

Source: AAPM; Budgets without VAT, after discounts; without political advertising; *f – forecast
TOP 20 ADVERTISERS BUY ~65% OF TOTAL INVENTORY, SMALL MOVE INTO DIGITAL
TOP 20 ADVERTISERS (BOUGHT WGRP 2015) (BOUGHT WGRP 2016) (BOUGHT WGRP 2017) (BOUGHT WGRP 2018 YTD)

Mondelez&JDE Nestle 69,976 Procter&Gamble 82,612 Moldtelecom 27,745

Orange 78,636 Procter&Gamble 69,897 Moldtelecom 68,770 Procter&Gamble 26,270
Unilever 51,272 Moldtelecom 60,277 Orange 67,102 Orange 26,115
Moldtelecom 50,182 Unilever 57,274 Unilever 60,884 Nestle 18,270

Procter&Gamble 46,991 Mondelez/JDE 55,747 Nestle 60,420 Unilever 15,153

Moldcell 40,588 Orange 55,342 Orimi Trade 44,390 Rusnac 14,190

Berlin-Chemie 39,069 Berlin Chemie 41,063 Berlin Chemie 42,533 Efes Vitanta 13,768

Nestle Orimi Trade 33,763 Efes Vitanta 26,035 Coca-Cola 11,158

35,406
Reckitt Benckiser 28,466 Johnson&Johnson 25,901 Berlin-Chemie 10,407
Novartis 31,735
Moldcell 19,944 Henkel 25,134 Efes Vitanta 10,380
Reckitt Benckiser 26,727
Henkel 19,536 Reckitt Benckiser 24,357 Orimi Trade 9,986
OrimiTrade 25,864
Johnson&Johnson 18,658 Ficosota Syntez 22,959 Moldcell 9,582
Bomba 22,366 Coca Cola 18,128 Moldcell 22,587 Reckitt Benckiser 8,662
Rusnac 21,087 Rusnac MoldAqua 17,167 Rusnac MoldAqua 20,129 Johnson&Johnson 8,616
Coca-Cola 17,566 Sandoz 15,888 Sandoz 19,756 Zdrovit 8,098
Henkel 16,356 KRKA 15,842 Vinamex 17,803 Bomba 7,800
Johnson&Johnson 12,259 Efes Vitanta 13,805 Coca Cola 17,561 JDE 7,527
KRKA 12,056 Beiersdorf 13,676 Zdrovit 17,295 Ficosota Syntez 7,343
Nivea 8,280 Vinamex 13,507 KRKA 16,835 Henkel 6,386
Grindex 2,609 Bomba & Alina… 13,413 JDE 15,226 MAIB 6,311

53% Share of TOP 20 in

total market 2015 58% Share of TOP 20 in
total market 2016 58% Share of TOP 20 in
total market 2017 65% Share of TOP 20 in
total market 2018

Source: AGB Moldova 2016-2017-2018 (Jan-Aug); wGRP calculated by TV channels buying audiences
STRUCTURE OF TV CHANNELS IN MOLDOVA – IP TV IS RESHAPING THE TV VIEWING
TECHNICAL COVERAGE OF TV CHANNELS INCLUDED IN THE AGB NIELSEN PANEL
NATIONAL AIR REGIONAL AIR LOCAL AIR CABLE ONLY
CONNECTION TYPE
COVERAGE COVERAGE COVERAGE COVERAGE

92% 71% 59% 67%

Cable

IP TV
17.9%
91% 64% 71% 75%
46.5%
Air
22.0% 78% 72% 69% 73%
Satelite
13.6% 74% 68%

70%

Source: AGB 2018; Channel coverage report

 MOLDOVA TV PICTURE – 15 COMMERCIAL CHANNELS VS. OTHERS
TV CHANNELS SHR%: TV CHANNELS COMMERCIAL SHR%:
2.3% 0.8%

44%
4.1%
9.9%
9.8% 10.1%
11.3%
Others TV - 11.4%
39.9% 9.2% 11.0%
More than 300 TV 41.4% 41.1% 44.1% 7.8%
channels viewing 5.3% 5.7% 4.0%
SHR% 8.6%

1.4% 14.5% 18.3%

2.4% 22.0%
5.8% 5.9% 0.5% 16.5%
6.7% 5.7%
6.7% 5.6% 2.4% 1.6%
4.6%
3.5% 6.1% 7.0% 2.5%
3.1% 4.5% 7.6%
5.1% 2.2%
6.4%

58%
Commercial
8.5%
1.4%
4.1%
9.7%

2.7%
11.0%

4.6%
12.3%
8.2%

8.2%
6.6%

7.9%
4.0%
5.9%

7.2%
3.1%
6.1%

7.3%
3.9% 3.6% 3.6%
4.8% 4.1% 3.9% 4.5% 2.8%
share sum of 5 4.7% 4.3% 3.4% 3.4%
channels (Prime, 4.1%
N4, RenTV, 19.2% 18.2% 17.9% 16.0%
Canal2 , RTR 11.3% 10.8% 10.8% 8.9%
Moldova) in total
2015 2016 2017 2018 YTD 2015 2016 2017 2018 YTD
TV market

Source: AGB Moldova 2015-2018 (1stHY); TA: 18+, Urban

 THERE IS STILL A LEADER ON TV MARKET, BUT NOT AN ABSOLUTE ONE
TV CHANNELS SHR% (2008-2018 YTD DYNAMICS):

Prime
Canal 2
22%
Canal 3
Publika TV
N4
RenTV
-59% SHR% lost by
PRIME since 2008
СТС
Domashniy 12%
RTR
THT 9%
NTV Moldova
TV7/8
PRO TV
Jurnal TV
Moldova1
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD

Source: AGB Moldova 2008-2018 YTD; TA: 18+, Urban

SMALLER MARGIN WITHIN TOP 3 CHANNELS FOR YOUNGER VIEWERS
TV CHANNELS SHR% (2008-2017 DYNAMICS):
Prime
Canal 2
Canal 3
Publika TV 18%
N4
RenTV
СТС
Domashniy
-51% SHR% lost by
PRIME since 2008 15%

RTR
THT 9%
NTV Moldova
TV7/8 6%
PRO TV
Jurnal TV
Moldova1
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD

Source: AGB Moldova 2008-2018 YTD; TA: 20-35, Urban MHI

NEW REGULATIONS FOR TV MARKET (FROM 2017) EVEN MORE IMPACT ON VIEWING

PERFORMING OF SHARE BY LOCAL CONTENT / AVERAGE PER MONTH (BASE = 18 HOURS / DAY, I.E. ONLY COMMERCIAL HOURS):

Channels Jan '17 Febr '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sept '17 Oct '17 Nov '17 Dec '17 Jan '18 Febr '18 Mar '18 Apr '18 May '18 Jun '18
Prime 14% 19% 20% 15% 22% 20% 18% 8% 19% 38% 39% 41% 30% 45% 49% 43% 49% 48%
Canal 2 20% 20% 21% 18% 17% 17% 18% 15% 21% 66% 65% 65% 51% 64% 64% 58% 65% 63%
Canal 3 20% 29% 38% 34% 42% 40% 40% 22% 38% 52% 55% 61% 48% 59% 60% 56% 59% 60%
Publika 109% 100% 110% 105% 111% 106% 108% 110% 97% 96% 92% 94% 111% 111% 110% 107% 113% 111%
N4 26% 27% 30% 27% 29% 29% 29% 22% 28% 30% 30% 28% 29% 30% 28% 24% 29% 27%
Ren TV 8% 10% 11% 7% 6% 7% 6% 4% 7% 9% 8% 10% 10% 17% 21% 16% 17% 19%
СТС 24% 24% 28% 24% 29% 28% 27% 12% 28% 31% 34% 36% 21% 35% 35% 31% 33% 33%
Familia / Domashniy 5% 6% 10% 11% 12% 11% 11% 7% 7% 9% 12% 14% 14% 16% 17% 15% 16% 16%
RTR 12% 18% 21% 18% 20% 20% 19% 12% 19% 21% 22% 25% 16% 33% 34% 31% 30% 33%
ТНТ 0% 0% 0% 0% 0% 1% 1% 1% 1% 1% 4% 8% 9% 15% 17% 16% 18% 18%
NTV 14% 29% 28% 25% 23% 22% 22% 11% 23% 24% 23% 23% 19% 32% 30% 26% 28% 27%
PRO TV 41% 42% 46% 45% 45% 43% 44% 43% 43% 45% 48% 38% 33% 42% 43% 39% 43% 42%
Jurnal TV 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 102% 104% 107% 108% 97% 99% 98%
TV8 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 66% 0% 0% 70% 69% 69% 69%

Obligatory share of local content in total broadcast DATE OF LAW ENTRY

INTO FORCE
44% (~244 hours / monthly)
Source: AGB Moldova 2017-2018
NEW REGULATIONS COULD HAVE A BIGGER IMPACT ON EFFICIENCY
PERFORMING OF SHARE BY LOCAL CONTENT / AVERAGE PER MONTH (BASE = 18 HOURS / DAY, I.E. ONLY COMMERCIAL HOURS):

Obligatory share of local content in total broadcast Already negative

44% (~244 hours / monthly) dynamics– while LAW not
fully respected

Source: AGB Moldova 2017; «Before LAW» - March-April, 2017; «After LAW» - October-November, 2017
TV DROWING IN EFFICIENCY BUT REQUIRES HIGHER COSTS

All Moldova
All Moldova

+53% +56%

Urban
+53%
18+

18+
4+

*Average market inflation ‘18 vs. ’17, recalculated by TV channels commercial share (by each audience)

Source: AGB Moldova 01.01.2017-12.11.2017

TV INFLATION DYNAMICS, TO UNDERSTAND 2018 IMPACT

2011 2012 2013 2014 2015 2016 2017 2018

Euro +11% +4% +12% +7% +2% - 1,75% -1,39% + 53%

MDL +10% +0,4% +20% +19% +15% +4,4% +5,0% + 52%

INFLATION CALCULATED BY 18+ TOTAL AUDIENCE

SOAP OPERA… EVEN WITHOUT A TV SOLD OUT ¯\_(ツ)_/¯
Sold OUT 2017 Sold OUT 2018 NOT SOLD SOLD
90%
82% Canal3 83%
80% 76% 76% ТНТ… 80%
71% 72% СТС
69% 68%
70% 67% 65% 65% RenTV 65%
61% 60% 61%
60% 58% N4 63%
56% 53%
52% PRO TV 60%
50% Canal2 58%
44%
40% 41% PRIME
38% 56%
40%
NTV 45%
30% Publika TV 40%
TV8 36%
20%
Domashniy 36%
Jurnal TV 36%
10%
RTR Moldova 33%
0% Moldova1 19%
0% 20% 40% 60% 80% 100%

Average Sold Out

2018 vs. 2017
Source: January-December 2017 / January-August 2018 AGB Moldova data; Inventory calculated by
channels Buying Audiences; Day parts – 06:00-23:59 -7% (51% vs 58%)
2018 TV COMMERCIAL MARKET MAP (CHANGES)

CASA MEDIA EXCLUSIV NOVA TV IN HOUSE

58% 11% 15% 16%
27%

15%

11%

7%
6% 6%
4% 4% 5%
3% 3% 3%
2% 2%
1%

Prime Canal 2 Canal 3 Publika TV N4 RenTV СТС Familia TNT NTV RTR Moldova1 Jurnal TV PRO TV TV8
Domashniy Moldova Moldova Moldova

2018
Structural changes on TV market – a new sales house has been launched at the end of 2018,
which became Nr.2 Sales House after Casa Media
Source: on the basis of October-November 2017 data AGB Moldova; cSHR by channels for TA: All 18-45 Day parts – 06:00-23:59
TV MARKET AD REVENUE DYNAMICS – NO GROWTH DESPITE OF HUGE INFLATION

13% 10%
SALES HOUSE JAN-AUG 2017 JAN-AUG 2018 DYNAMICS 13% In House
Market volume (€)

21%
Casa Media € 3,682,232 € 4,711,111 28% 15%
Nova TV
14%
Exclusiv SH € 1,033,335 € 1,141,353 10%
Nova TV € 1,602,394 € 1,013,651 -37% Exclusiv
52% 62%
IN HOUSE € 904,766 € 842,029 -7%
Casa Media
TOTAL € 7,222,727 € 7,708,144 7%
Jan-Aug, 17 Jan-Aug, 18

Casa Media SHR% +10%

9% 6%
Market volume (GRPs)

SALES HOUSE JAN-AUG 2017 JAN-AUG 2018 DYNAMICS 14% In House

22%
Casa Media 388,848 377,149 -3% 18%
16% Nova TV
Exclusiv SH 117,703 101,589 -14%
Nova TV 157,481 84,328 -46% Exclusiv
IN HOUSE 60,895 37,387 -39% 54% 62%
Casa Media
TOTAL 724,927 600,453 -17%
Jan-Aug, 17 Jan-Aug, 18

Источник: AGB Moldova 2017-2018; ЦА: баинг. аудитории телеканалов / SOLD OUT по Eq. GRPs
THANK YOU