Central European Media Enterprises Ltd. Reports ird Quarter And Nine Mons Ended September 0, 0 Results

Central European Media Enterprises Ltd. Reports Third Quarter And Nine Months Ended September 30, 2013 Results October 30, 2013, HAMILTON, BERMUDA Download copy (PDF, 737 kB)

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

Net revenues for the third quarter ended September 30, 2013 were US$ 135.8 million compared to US$ 140.1 million for the third quarter of 2012. OIBDA1 for the quarter ended September 30, 2013 was US$ (32.4) million compared to US$ 3.5 million for the three months ended September 30, 2012. Operating loss for the three months ended September 30, 2013 was US$ (45.0) million compared to US$ (18.4) million for the same period in 2012. Net loss for the three months ended September 30, 2013 was US$ (23.3) million compared to US$ (32.6) million for the same period in 2012. Fully diluted loss per share attributable to CME for the three months ended September 30, 2013 was US$ (0.16) compared to US$ (0.36) for three months ended September 30, 2012.

Net revenues for the nine months ended September 30, 2013 were US$ 453.1 million compared to US$ 518.7 million for the same period in 2012. OIBDA for the nine months ended September 30, 2013 was US$ (46.1) million compared to US$ 64.7 million for the same period in 2012. Operating loss for the nine months ended September 30, 2013 was US$ (85.6) million compared to US$ (5.1) million in 2012. Net loss for the nine months ended September 30, 2013 was US$ (173.3) million compared to US$ (43.3) million for the same period in 2012. Fully diluted loss per share attributable to CME for the nine months ended September 30, 2013 was US$ (1.45) compared to US$ (0.57) for nine months ended September 30, 2012.

Michael Del Nin, co-Chief Executive Officer, commented: "Christoph and I find this level of performance unacceptable and have directed all of our energy since starting with CME a few weeks ago to addressing the major reasons for these financial results and making changes to improve them going forward."

Christoph Mainusch, co-Chief Executive Officer, added: "Our leading audience shares give us a strong advantage over our competition, and we intend to capitalize on this by concentrating our efforts on improving the monetization of our audiences. Improving the performance of our Czech operations is the top priority. We believe that rebuilding our relationships with agencies and clients while protecting price increases achieved during the year is an essential step to improving our competitive position in that market."

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 September 30, 2013

Net revenues for the three months ended September 30, 2013 were US$ 135.8 million compared to US$ 140.1 million for the three months ended September 30, 2012. Operating loss for the three months ended September 30, 2013 was US$ (45.0) million compared to US$ (18.4) million for the three months ended September 30, 2012. Net loss for the three months ended September 30, 2013 was US$ (23.3) million compared to US$ (32.6) million for the three months ended September 30, 2012. Fully diluted loss per share attributable to CME for the three months ended September 30, 2013 was US$ (0.16) compared to US$ (0.36) for the three months ended September 30, 2012.

OIBDA for the three months ended September 30, 2013 was US$ (32.4) million compared to US$ 3.5 million in the same period ended September 30, 2012. OIBDA margin2 for the three months ended September 30, 2013 was (23.9)% compared to 2.5% for the three months ended September 30, 2012.

The decline in OIBDA significantly outpaced the decline in revenues during the three months ended September 30, 2013. This decrease in OIBDA is primarily attributable to an increase in content costs of US$ 15.1 million, including US$ 9.0 million of accelerated amortization of program rights, US$ 4.2 million of restructuring charges, US$ 6.4 million of severance costs, and approximately US$ 5.0 million of operating and other costs, as well as a weaker dollar.

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

RESULTS

(unaudited) For the Three Months Ended September 30,

(US $000's)

2013 2012 % Actual % Lfl3

Net revenues $135,838 $140,092 (3.0)% (7.5)%

OIBDA (32,444) 3,508 Nm4 Nm4

Operating loss (44,967) (18,401) (144.4)% (130.1)%

Net loss (23,273) (32,637) 28.7% 50.4%

Fully diluted loss per share $(0.16) $(0.36) Nm4 Nm4

Consolidated Results for the Nine Months Ended September 30, 2013

Net revenues for the nine months ended September 30, 2013 were US$ 453.1 million compared to US$ 518.7 million for the nine months ended September 30, 2012. Operating loss for the nine months ended September 30, 2013 was US$ (85.6) million compared to US$ (5.1) million for the nine months ended September 30, 2012. Net loss for the nine months ended September 30, 2013 was US$ (173.3) million compared to US$ (43.3) million for the nine months ended September 30, 2012. Fully diluted loss per share attributable to CME for the nine months ended September 30, 2013 was US$ (1.45) compared to US$ (0.57) for the nine months ended September 30, 2012.

OIBDA for the nine months ended September 30, 2013 was US$ (46.1) million compared to US$ 64.7 million in the same period ended September 30, 2012. OIBDA margin for the nine months ended September 30, 2013 was (10.2)% compared to 12.5% for the nine months ended September 30, 2012.

2) OIBDA margin is defined as the ratio of OIBDA to N

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