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Est Media Group submits bid for country-wide radio broadcast frequency

A consortium of Est Media Group (EMG) and its radio station radiocafe 98.6 submitted a bid for one of Hungary's two country-wide broadcast frequencies, the companies' parent, econet.hu, said.

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 license 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 Sláger Rádió against the operators of Sláger Rádió and Danubius Rádió as well as Zene Rádió Orszagás Kereskedőház, which was established by the former head of Rádio1, its owner, Dávid Márton, told MTI.

Bidding for the frequency currently used by Danubius Rádió are the operators of Danubius Rádió and Juventus Rádio, as well as Zene Rádió Orszagás Kereskedőház and a company called Danubius Rádio Műsorszolgáltató. (MTI – Econews)