TVN SA - Report

The management of TVN S.A. ("Company"), after reviewing the macroeconomic forecasts for Poland and the TVN Group results achieved in the first nine months of 2014, expects the following: GDP growth in Poland will amount to approximately 3.0% to 3.5% for the period from 2014 to 2016.

Consistent with the above, TV advertising market growth should remain relatively stable in the low to mid-single digits for the same period, whilst the online advertising market is expected to post growth rates in the high-single digits for the same period.

In light of the above expectations for economic development, combined with further anticipated non-linear revenue developments, full year consolidated revenue of the TVN Group is likely to grow by low-single digits for all of 2014, and accelerate mid- to high-single digits of between 5% to 9% in both 2015 and 2016.

Based on such assumptions, together with continued positive developments in associate distribution expectations, the management forecasts full year consolidated adjusted EBITDA of approximately PLN 520 million in 2014, PLN 590 million in 2015 and PLN 630 million in 2016.

In addition, the management assumes the following in terms of investing and financing activities:Proportionate share buyback in the range of PLN 225 million to 250 million in 2015, with dividend paid in 2016 of approximately 50% of consolidated net profit in 2015;Consolidated capital expenditures of approximately PLN 60 million in 2014, PLN 70 million in 2015 and PLN 60 million in 2016, with continued low cash taxes payable;Operating cash flow in excess of the total of capital expenditures, taxes, interest payments and shareholder distributions in both 2015 and 2016 will be applied primarily against debt reduction;

No material capital market transactions are expected to occur through the end of 2016;No material new financings are expected, although should an opportunity arise to refinance existing bond debt as a result of favourable market conditions, and/or positive circumstances arising from a potential TVN change of control, then a refinancing could occur;EUR/PLN exchange rate development in line with the current financial market consensus.Looking beyond 2016, and under the assumption of continued GDP growth in Poland of between 3 and 4%, the management expects to achieve a compound annual growth rate of revenues of approximately 5% in years 2017-2019.

It has to be emphasized that any assessment of GDP and revenues assumes no major macroeconomic disruption (e.g. sovereign debt crisis in Europe, geopolitical instability in neighbouring countries, global economic uncertainty).In addition, the Company will monitor its results and the possibility of achieving the forecasts on a quarterly basis by conducting an analysis of the performance of the budget of the Company and the Group and an analysis of the basic assumptions set out above and external factors impacting the issuer's forecast results (including growth of the advertising market, GDP growth in Poland, etc.).

The assessment of the results achieved and a potential adjustment to the forecast will be made after the end of each quarter of financial years covered by the forecast. If the results achieved are expected to impact the EBITDA forecast by +/- 10% or more, the Company will adjust the forecast by means of a current report

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