19 february 2015
MAYKOR-GMCS modified budgeting in Tricolor TV

MAYKOR-GMCS carried out comprehensive modification of an automated budget management system based on IBM Cognos products for Tricolor TV. The updated system became an effective mechanism for managing the financial processes of Russia's largest operator of digital television.

Tricolor TV decided to revise a budgeting system early in 2014 in order to achieve a number of strategic objectives. Firstly, it was necessary to provide a tool to form the budget in accordance with IFRS and adjust the methodology of budget transformation from RAS to international standards. Secondly, the revision aim was to automate reception of the plan-fact analysis: synchronize budget references and accounting system references, and implement a monthly automatic download of the actual data.

"The new system not only improves the quality of financial processes, but also allows control the company efficiency in accordance with the target values. It includes the subscriber base, revenues from basic services, service cost, EBITDA-margin, etc." says E. Nosov, CFO of "National Satellite Company, JSC."

Planning and budgeting occur in IBM Cognos TM1. The system automates formation and approval of annual and operational budgets - Tricolor TV uses method of sliding planning, quarterly adjustments, plan-fact analysis, and comparison of budgets with key performance indicators. Creation of management reporting and data analysis is based on components of IBM Cognos BI. IBM Cognos BI tool provides visualization of data in user-friendly form, including dashboards.

Currently, the automated system of budget management of Tricolor TV is in commercial operation. The system users are all departments and divisions of the customer’s financial responsibility centers.

"Tricolor TV impressed us with incredibly high performance of top managers and experts during the project. For example, technical specification for the 230 pages was read by CFO for just one night and had more than 50 comments in the text, and CEO personally participated in 3-hour system training. There is democratic atmosphere in the company, new ideas are welcome, and issues are solved quickly. All this allowed us to realize our ideas and complete the project on time," adds Bela Temirkanova, Project Manager, MAYKOR-GMCS.

"IBM solutions for business intelligence help organizations of all sizes to understand the information in a business context. With these solutions it is possible to extract valuable information faster and easier from all types of data, as well as transform the entire cycle of planning, from goal setting and budgeting to reporting, analysis, indicators mapping and forecasting," noticed Irina Tereschenko, Specialist of BI Sales Department, IBM in Russia and CIS.

About Tricolor TV

Tricolor TV is the Russia's largest satellite TV operator performing digital broadcasting of a package of television channels in the European part of Russia, as well as in Siberia, Urals and Far East since December 2005.

According to British market research company IHS Screen Digest, Tricolor TV is the most popular Pay TV operator in Eastern Europe, ranks first in Europe for the pace of growth of subscriber base over the past four years and is one of the three world leaders, along with the Indian operators Dish TV and Sun Direct.

By the end of March 2012 the company's subscriber base exceeded 11 million households, while the number of paying subscribers of Tricolor TV was about 7.7 million. The operator’s viewership has approached 30 million people, meaning that one fifth of the country’s inhabitants watch Tricolor TV. According to the research company J'son and Partners, Tricolor TV is the leader of Russia's Pay TV market (39 per cent of subscribers) and the operator's share in the satellite segment is 86 per cent.

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