Central European Media Enterprises Ltd. Reports Second Quarter And Half Year 0 Results

Central European Media Enterprises Ltd. Reports Second Quarter And Half Year 2013 Results July 31, 2013, HAMILTON, BERMUDA Download copy (PDF, 545 kB)

HAMILTON, BERMUDA, July 31, 2013 - Central European Media Enterprises Ltd. ("CME" or the "Company") (NASDAQ/Prague Stock Exchange - CETV) today announced financial results for the three and six months ended June 30, 2013.

Net revenues for the second quarter ended June 30, 2013 were US$ 180.2 million compared to US$ 211.2 million for the second quarter of 2012. OIBDA1 for the quarter ended June 30, 2013 was US$ 7.0 million compared to US$ 47.1 million for the three months ended June 30, 2012. Operating loss for the three months ended June 30, 2013 was US$ (5.7) million compared to operating income of US$ 23.7 million for the same period in 2012. Net loss for the three months ended June 30, 2013 was US$ (41.1) million compared to net income of US$ 3.1 million for the same period in 2012. Fully diluted loss per share attributable to CME for the three months ended June 30, 2013 was US$ (0.34) compared to income per share of US$ 0.06 for three months ended June 30, 2012.

Net revenues for the six months ended June 30, 2013 were US$ 317.3 million compared to US$ 378.7 million for the same period in 2012. OIBDA for the six months ended June 30, 2013 was US$ (13.6) million compared to US$ 61.2 million for the same period in 2012. Operating loss for the six months ended June 30, 2013 was US$ (40.7) million compared to operating income of US$ 13.3 million in 2012. Net loss for the first half ended June 30, 2013 was US$ (150.1) million compared to US$ (10.7) million for the same period in 2012. Fully diluted loss per share attributable to CME for the six months ended June 30, 2013 was US$ (1.42) compared to US$ (0.14) for six months ended June 30, 2012.

Adrian Sarbu, President and Chief Executive Officer of CME, commented: "In the first half of 2013 we stood firm on the execution of our strategy. We secured double digit TV advertising price increases in the Czech Republic and single digit increases in the other countries on commitments signed. We raised carriage fees in Romania and Bulgaria which for the coming years are expected to more than double compared to 2012. We also repurchased EUR 206 million of debt with proceeds from our successful equity offerings during the quarter. Our products are performing better than last year.

Looking back, lower revenues in the Czech Republic impacted our financial results in the second quarter and first half of 2013 as certain key advertisers have only recently accepted our higher prices.

Looking forward, we expect the declining trend of TV advertising spending to reverse in the fall of 2013 building on our pricing initiatives. We believe the successful execution of our strategy puts the Company back on the path to growth in 2014."

1 OIBDA, which includes program rights amortization costs, is determined as operating income / (loss) before depreciation, amortization of intangible assets and impairments of assets as defined in "Segment Data" below.

Consolidated Results for the Three Months Ended June 30, 2013

Net revenues for the three months ended June 30, 2013 were US$ 180.2 million compared to US$ 211.2 million for the three months ended June 30, 2012. Operating loss for the three months ended June 30, 2013 was US$ (5.7) million compared to operating income of US$ 23.7 million for the three months ended June 30, 2012. Net loss for the three months ended June 30, 2013 was US$ (41.1) million compared to net income of US$ 3.1 million for the three months ended June 30, 2012. Fully diluted loss per share attributable to CME for the three months ended June 30, 2013 was US$ (0.34) compared to income per share of US$ 0.06 for the three months ended June 30, 2012.

OIBDA for the three months ended June 30, 2013 was US$ 7.0 million compared to US$ 47.1 million in the same period ended June 30, 2012. OIBDA margin2 for the three months ended June 30, 2013 was 3.9% compared to 22.3% for the three months ended June 30, 2012.

Headline consolidated results for the three months ended June 30, 2013 and 2012 were:

RESULTS

(unaudited) For the Three Months Ended June 30,

(US $000's)

2013 2012 % Actual % Lfl3

Net revenues $180,245 $211,222 (14.7)% (15.0)%

OIBDA 7,049 47,112 (85.0)% (85.0)%

Operating (loss) / income (5,669) 23,650 Nm4 Nm4

Net (loss) / income (41,088) 3,141 Nm4 Nm4

Fully diluted (loss) / income per share $(0.34) $0.06 Nm4 Nm4

Consolidated Results for the Six Months Ended June 30, 2013

Net revenues for the six months ended June 30, 2013 were US$ 317.3 million compared to US$ 378.7 million for the six months ended June 30, 2012. Operating loss for the six months ended June 30, 2013 was US$ (40.7) million compared to operating income of US$ 13.3 million for the six months ended June 30, 2012. Net loss for the six months ended June 30, 2013 was US$ (150.1) million compared to US$ (10.7) million for the six months ended June 30, 2012. Fully diluted loss per share attributable to CME for the six months ended June 30, 2013 was US$ (1.42) compared to US$ (0.14) for the six months ended June 30, 2012.

OIBDA for the six months ended June 30, 2013 was US$ (13.6) million compared to US$ 61.2 million in the same period ended June 30, 2012. OIBDA margin for the six months ended June 30, 2013 was (4.3)% compared to 16.2% for the six months ended June 30, 2012.

Headline consolidated results for the six months ended June 30, 2013 and 2012 were:

RESULTS

(unaudited) For the Six Months Ended June 30,

(US $000's)

2013 2012 % Actual % Lfl3

Net revenues $317,287 $378,655 (16.2)% (15.7)%

OIBDA (13,616) 61,172 Nm4 Nm4

Operating (loss) / income (40,668) 13,347 Nm4 Nm4

Net loss (150,051) (10,672) Nm4 Nm4

Fully diluted loss per share

LINK:	http://www.cetv-net.com/en/press-center/news/423.shtml...
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