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TWST: Can we start with a quick introduction to Agora (DE:919226) and then just bring us up to date with new developments since we last spoke?

Ms. Rapaczynski: We were established 13 years ago to publish the first independent newspaper in Poland. Now we are one of the biggest media companies in Poland, and in Central and Eastern Europe. Listed in Warsaw and London since 1999, our current market cap is about 780 million dollars. The flagship business, the newspaper, is the largest and most profitable Polish daily, with average daily paid circulation in excess of 460,000 copies. What is new is that we are slowly becoming a multimedia company. Our radio business now consists of 28 local radio stations and one super-regional station. We publish free newspapers. This year we entered two new media sectors: we acquired the leader of the Polish outdoor advertising market, and a portfolio of 16 color magazines which we intend to keep growing. Going forward we need to consider entering the TV business, and possibly media investments abroad, in the CEE region.

TWST: Can we look forward to the next 12 to 24 months and get an idea of your overall strategic direction? You mentioned television, for example, is that an area you would hope to have a foothold in within the near to mid-term?

Ms. Rapaczynski: We have said two years ago that we are interested. In fact, our interest was one of the reasons for the newly drafted bill - to stop us from owning television. That provision has thankfully disappeared from the draft. Once we understand the regulatory environment, we will certainly consider an investment, but whether we’ll make it depends on the usual factors, the valuation, price, and so on.

TWST: What else is on the agenda?

Ms. Rapaczynski: Basically, strategically we will proceed along the lines which you have seen in the last few years. Growth will be primarily through mergers and acquisitions. Our core business is mature and very successful, but its future growth depends entirely on the growth of the economy, it’s basically a GDP play. In the short run, we are looking at several issues. Number one: what will happen with the economy and advertising market next year? The market affects our operations and our ability to invest. Number two, one of the key priorities for next year is to consolidate the new businesses. We bought two businesses which are workouts, so we must quickly turn them around. We are going to go slowly next year on international investments and will focus instead on strengthening the segments in which we now operate; we will strive to buy assets in those segments necessary to strengthen our leadership position. Of course, there are the usual exceptions. One is television. And, second, if an attractive opportunity arises, we will be interested and will certainly take a look. In the short run, there is the issue of the advertising market. As you know, this is the second year of a very severe recession, and we don’t believe at this point that there will be any significant growth in the advertising market next year. There are two reasons for this: even if the economy grows, there is a time-lag of about six to nine months; and secondly, GDP has to grow at least 2% for advertising to grow. But the upside of this is that once the economy improves, we now have a broader exposure and are therefore poised to truly benefit from the turn-around. Both in terms of top line and bottom line, as most of our businesses have a significant fixed cost base.