Question-and-Answer Session
Certainly. [Operator Instructions]. Your first question is coming from David Kestenbaum of Morgan Joseph. Please go ahead sir.
David Kestenbaum - Morgan Joseph
Thanks. Can you just give us a little color on the competitive environment in the Czech Republic and how you see that changing going forward with the advent of digital in the market? That's the one. Two, can you talk about CapEx in 2008, you spent $81.5 million last year? Maybe if you don’t want to give a number at least talk may be about some of the big projects that you have in mind for 2008. And then finally acquisition environment I know it seems like you passed on Turkey, is there a chance that you may come back to that or is there anything else out there? Thanks.
Adrian Sarbu - Chief Operating Officer
Dave I'll answer to you about the Czech Republic. It's a long story about competition to be brought by the new digital terrestrial channels in Czech Republic. So I'm tired of waiting for the competitors and to really be able to compete and fight with them. It's true this year that Parliament passed a Digital Law, which is from our point of view a good law because it respects our position in the market and it guarantees our coverage even under the new digital technical environment. In respect to the competition, competition is welcome, we had a number of channel competing us. There are more and more smaller channels, cable channels which get a little bit of share but don't forget that part of our strategy is to be the leaders of the new digital environment in Czech Republic which means we’ll launch more channel, all of them will be digital once the technology will be available and the coverage will be acceptable from the business point of view. So I repeat what I told you two years ago and one year ago, for us competition is not a threat, for us competition is an opportunity to give more to our viewers and you have the example in Romania, where PRO TV stations which are now number six are competing with 40 players in the free-to-air and cable and we have still delivering the results which you saw.
Wallace Macmillan - Chief Financial Officer
Dave let me pick up on your CapEx question. CapEx in 2007 was pretty much on guidance at about $81 million and as we've said before we expect CapEx over the next two years to rise from that figure as we complete investment program and I'll give you specific guidance say in the next earnings call. But in principle the main projects that we are looking at for 2008 relates to premises and production and including in the production context news and we've had great success with our new news facilities in Romania and the Czech Republic and in Markiza and we are developing as Michael pointed out as one of our ambition more production facilities in pretty much all of our markets. And in most cases this involves building work because we are moving gradually from rented premises in many markets to owning our own premises and we made that decision for two or three reasons. The first is the cost of a limited supply of proper premises for this kind of activity and we don't want to have such an important activity held hostage to fortune in any of the markets. Secondly it enables us to consolidate our operations and from a geographic perspective and thirdly because if you look at the rent versus [inaudible] by decision it actually makes a lot of sense and straight cash purposes. So, those are the primary areas where we're going to be investing in CapEx going forward.
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