CME drops 1/3 revenue


Central European Media Enterprises announced financial results for the three months and nine months ended September 30th, 2009.

Net revenues for the third quarter of 2009 were $134.5 million, a decrease of 33 per cent compared to the third quarter of 2008. Operating income for the quarter decreased $40.6 million to a loss of $33.5 million. Net income from continuing operations decreased $5.7 million to a loss of $24.3 million, and fully diluted loss per share decreased by $0.10 to a loss of $0.35.

Net revenues for the nine months ended September 30th, 2009 were $461.9 million, a decrease of 37 per cent compared to the nine months ended September 30th, 2008. Operating income for nine months ended September 30th, 2009 decreased $257.6 million to a loss of $106.2 million. Net income from continuing operations decreased $111.5 million to a loss of $48.9 million, and fully diluted income per share decreased by $2.18 to a loss of $0.81.

Adrian Sarbu, President and Chief Executive Officer of CME, commented: "This is the fourth quarter of decline in our advertising markets. TV ad spending was 30 per cent lower than in 2008. We believe the markets have reached the bottom. This is a new starting point. The macroeconomic prospects for 2010 have improved and we expect advertising spending to follow. Our priority for 2010 is to convert our high audience and market share into higher revenues while managing costs rigorously. We believe in our ability to outperform the markets."