Central European Media Enterprises Ltd. Reports Results for the Three Months Ended March 31, 2020

Central European Media Enterprises Ltd. Reports Results for the Three Months Ended March 31, 2020

April 22, 2020

Download this Press Release ()

-- - Net revenues decreased 2% at actual rates but increased 2% at constant rates to US$ 143.8 million -

- Operating income decreased 5% at actual rates and 1% at constant rates to US$ 26.2 million -

- OIBDA decreased 2% at actual rates but increased 2% at constant rates to US$ 37.2 million -

HAMILTON, Bermuda--(BUSINESS WIRE)-- Central European Media Enterprises Ltd. ( CME or the Company ) (Nasdaq/Prague Stock Exchange - CETV) today announced financial results for the three months ended March 31, 2020.

Operational and financial highlights for the first quarter 2020 compared to the first quarter 2019:

TV advertising revenues decreased 4% at actual rates and 1% at constant rates.

Carriage fees and subscription revenues increased 7% at actual rates and 11% at constant rates.

Costs charged in arriving at OIBDA decreased 2% at actual rates, but increased 2% at constant rates.

The OIBDA margin remained constant at approximately 26%.

Cash generated from operating activities increased 21% at actual rates to US$ 115.9 million.

Unlevered free cash flow increased 20% at actual rates to US$ 113.9 million.

The net leverage ratio was 2.2x at the end of March, down from 2.4x at the start of 2020.

Finished the quarter with cash of US$ 140.3 million and total liquidity available of US$ 215.3 million.

On October 27, 2019, we entered into a merger agreement with an affiliate of PPF Group N.V. (PPF). The closing of the proposed merger is subject to several conditions, including, but not limited to, the requisite vote of the Company's shareholders in favor of the transaction and receipt of certain competition and other regulatory approvals. A special general meeting of shareholders of the Company was held on February 27, 2020, where more than 99% of the votes cast by shareholders were in favor of approving the merger agreement, the related statutory merger agreement and the merger transaction. In addition, regulatory approvals required under the merger agreement in Romania and Slovenia have been obtained. For additional information on the merger, please see the proxy statement of the Company related to the special general meeting of shareholders, filed with the SEC on January 10, 2020. PPF is currently planning on filing the required notification to the European Commission in the second quarter, and we expect the proposed merger to be completed in the third quarter of 2020.

Due to the pending proposed merger with PPF, we will not hold a conference call for investors in connection with the issuance of this earnings release.

In a joint statement, Michael Del Nin and Christoph Mainusch, Co-Chief Executive Officers, said, Our businesses enjoyed a strong start to the year, although economic uncertainty related to the COVID-19 pandemic resulted in reductions in spending overall by advertisers in March, which has continued into April and is expected to negatively impact our financial performance in the second quarter. We have rapidly implemented adjustments to our cost base to mitigate this decline in advertising, and we have the ability to make further adjustments if necessary. After one of our strongest ever quarters in terms of cash generation, and with a strong balance sheet that has benefited from significant deleveraging over the past several years, we are well positioned to respond to the uncertainty created by the pandemic.

In this release we refer to several non-GAAP financial measures, including OIBDA, OIBDA margin, free cash flow, unlevered free cash flow and constant currency percentage movements. Please see Non-GAAP Financial Measures below for additional information, including definitions and reconciliations to US GAAP financial measures.

Consolidated results for the three months ended March 31, 2020 and 2019 were:

(US$ 000s, except per share data)

For the Three Months Ended March 31,

(unaudited)

2020

2019

% Actual

% Lfl (1)

Net revenues

$

143,816

$

146,559

(1.9)%

1.8%

Operating income

26,197

27,637

(5.2)%

(0.6)%

Operating margin

18.2

%

18.9

%

(0.7) p.p.

(0.5) p.p.

OIBDA

37,171

38,057

(2.3)%

2.0%

OIBDA margin

25.8

%

26.0

%

(0.2) p.p.

0.0 p.p.

Net income

8,970

11,751

(23.7)%

(17.7)%

Net income attributable to CME per share - basic

0.02

0.03

(23.3)%

(17.3)%

Net income attributable to CME per share - diluted

$

0.02

$

0.03

(23.4)%

(17.5)%

(1) % Lfl (like-for-like) variance reflects the impact of applying the current period average exchange rates to the prior period revenues and costs.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements. For all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Forward-looking statements reflect our current views with respect to future events and because our business is subject to such risks and uncertainties, actual results, our strategic plan, our financial position, results of operations and cash flows could differ materially from those described in or contemplated by the forward-looking statements.

Important factors that contribute to such risks include, but are not limited to, those factors set forth under Risk Factors in our Quarterly Report on Form 10-Q for the period ended March 31, 2020 as well as the following: the effect of the ongoing COVID-19 pandemic and actions taken by governmen

LINK:	https://www.cetv-net.com/company-news/press-releases/press-release-det...
	See more stories from cetv

Most recent headlines