CTC Media’s channels CTC and Domashny will each pay the Russian Television and Radio Network (RTRS) approximately $3 million (€2.28 million) this year to have their signals distributed digitally.
In a statement about the MTG-backed company’s transition to digital broadcasting contained in its latest set of results, it adds that fees payable to RTRS for 2014 and beyond will be calculated on an annual basis according to rates set by RTRS by October 1 of the previous year and will be impacted by multiplex infrastructure rollout.
CTC Media has an agreement with RTRS until March 31, 2023 that will see CTC and Domashny distributed digitally throughout Russia to around 141.6 million viewers.
The Russian government has already said that each channel participating in the second multiplex will be expected to pay up to $26 million annually based on the planned rollout.
However, in the transition period these fees are expected to be lower and paid in installments as the rollout progresses.
CTC Media paid $26 million in transmission costs for all its channels in 2012. It had total operating revenues of $191.1 million in Q1 this year, or 2% more than in the corresponding period in 2012.
Its OIBDA fell by 8% over the same period to $55.1 million and net income by 12% to $32.6 million.