ADVERTISEMENT CAKE 2013 Advertising Revenue Survey of the Hungarian Television Market February 2014

Page 2 ADVERTISEMENT CAKE 2013 ► This year’s methodology saw slight modifications compared to ► The data used to determine the size of the advertising market was provided directly by television companies and sales houses – most of them members of the Association of the Hungarian Electronic Broadcasters (hereinafter referred to as MEME). ► 56 television channels provided data. ► Compared to 2012, one channel (M3) joined the survey while one channel (Hír TV) decided not to participate. ► Data collection and analysis was performed by EY. ► All collected data have been destroyed after the analysis. ADVERTISEMENT CAKE 2013

Page 3 The number of data providers extended by two television companies ADVERTISEMENT CAKE 2013 ► ATV ► AXN ► Cartoon Network ► CBS Reality ► Comedy Central ► Cool ► Discovery ► Disney Channel ► DoQ ► Duna TV ► Duna World ► FEM3 ► Film Café ► Film Mánia ► Film+ ► Film+2 ► Fishing and Hunting ► HBO (no advertising revenue) ► LifeNetwork ► M1 ► M2 ► Megamax ► MGM Channel ► Minimax ► MTV ► Musicmix ► Music Channel ► Muzsika ► Nat Geo Wild ► National Geographic ► Nickelodeon ► Nóta TV ► OzoneNetwork ► Prizma ► PRO4 ► PV TV ► RTL II ► RTL Klub ► Sorozat+ ► Spektrum ► Spektrum Home ► SPI channels (no advertising revenue) ► Sport Klub ► Sport M ► Sport 1 ► Sport 2 ► Story 4 ► Story 5 ► SUPERTV2 ► TV Paprika ► Tv2 ► Universal Channel ► Viasat3 ► Viasat6 ► Viva Newly added channel: ► M3 Not participating channel (compared to 2012): ► Hír TV

Page 4 Net-net revenue was used for our analysis ► Net-net revenue, i.e. revenue after deducting discounts and agency commissions, was used. ► No barter revenue was included. ► No other revenue data were included (e.g. premium rate calls or text message charges, revenues from events or merchandise). ► Sponsorship contained revenue from product placement but in the case of sponsored programs it did not contain production costs. ► All data are presented in million HUF. ADVERTISEMENT CAKE 2013

Page 5 A 45,6 billion adcake ► Based on the calculation of EY, the total revenue of the television advertising market in 2013 is: MILLION HUF ► The market share of the participating television companies based on television viewership data is approximately 99%.* * Within the 18–49 age range, 2-26 hours range (data provided by MEME) ADVERTISEMENT CAKE 2013

Page 6 Advertisement cake 2013 (in million HUF) REKLÁMTORTA 2013

Page 7 Adcake 2013 (in million HUF and percentage) REKLÁMTORTA 2013

Page 8 Television advertising revenue is still decreasing. ADVERTISEMENT CAKE 2013

Page 9 4% increase in the non-terrestrial television market ADVERTISEMENT CAKE 2013

Page 10 Share of non-terrestrial broadcasters increased within the advertisement cake ADVERTISEMENT CAKE 2013

Page 11 39% decrease of non-spot advertising revenues ADVERTISEMENT CAKE 2013

Page 12 Share of spot advertising revenue increased in the advertisement cake ADVERTISEMENT CAKE 2013

Page 13 Summary ► In 2013, the total television advertising revenue kept decreasing. The decrease was HUF million, which is a moderate decline in comparison to the decrease of HUF million in ► Two thirds of the total 2013 advertising revenue came from spot revenues of terrestrial broadcasting televisions while 30 percent originated from spot revenues of non-terrestrial (cable) televisions. ► The distribution of advertising revenues among terrestrial and non-terrestrial broadcasting televisions saw only a slight shift in favor of non-terrestrial broadcasters, which were able to increase their overall advertising revenues. ► After the 25% increase of non-spot advertising revenue in 2012, this year showed its steep decline of 39% compared to the previous year. This is partly due to the modification in methodology as the sponsored programs no longer contain production costs. ADVERTISEMENT CAKE 2013

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