A consortium of Est Media Group (EMG) and its radio station radiocafe 98.6 on Monday submitted a bid for one of Hungary’s two country-wide broadcast frequencies, the companies’ parent, econet.hu, said late on Monday.
If the FM1 Consortium wins the bid, it could add billions of forints to EMG’s revenue in 2010. It would also boost econet.hu’s consolidated profits after the costs of the licence and the necessary investments are recouped.
Start-up costs for the country-wide broadcaster would come from econet.hu’s own resources as well as external resources. Rather than restructuring radiocafe, which would have to turn in its broadcast licence if the FM1 Consortium wins the tender, econet.hu said it would be more cost-effective to establish a new company to broadcast on the frequency. The new company’s assets would come from capital or loans or a combination of both.
Hungary’s national broadcast licensing agency ORTT will evaluate the bids within 90 days.
ORTT said on Monday that it received four bids for each of the two frequencies from six companies. FM1 Consortium is competing for the frequency currently used by Slager Radio against the operators of Slager Radio and Danubius Radio as well as Zene Radio Orszagos Kereskedohaz.
Zene Radio Orszagos Kereskedohaz was established by the former head of Radio1, its owner, David Marton, told MTI.
Bidding for the frequency currently used by Danubius Radio are the operators of Danubius Radio and Juventus Radio, as well as Zene Radio Orszagos Kereskedohaz and a company called Danubius Radio Musorszolgaltato.