CME facing a challenge

October 31, 2012 09.52 Europe/London By Chris Dziadul

Central European Media Enterprises (CME) has posted net revenues of $140.1 million (€108.3 million) for the third quarter, compared to $165.5 million for the same period last year.

Its OIBDA was $3.5 million ($8.9 million) and operating loss $18.4 million ($2.9 million), though the net loss of $82.2 million was an improvement on last year’s $32.6 million.

Net revenues and the OIBDA for the first nine months of the year were also down on 2011, while the operating loss of $5.1 million contrasted to an operating income of $18.9 million.

The net loss of $43.3 million was meanwhile an improvement of $59.1 million on the previous year’s $102.4 million.

Net broadcast revenues in all six CME markets in Central and Eastern Europe in Q3 were down on a year earlier.

However, there was growth in the Media Pro Entertainment ($44.759 million v $35.141 million) and New Media ($3.780 million v £3.246 million) divisions.

Commenting on the results, Adrian Sarbu, CME’s president and CEO, said: “Our third quarter results and the prospects for the full year 2012 indicate that our markets are not recovering. In the second half of 2012 advertising spending has not matched our expectations. We were successful in addressing our capital structure and debt maturities but we were unable to achieve our sales and free cash flow targets. Our OIBDA guidance for 2012 is between US$130 – 140 million. Facing new challenges, we focus on maintaining our leading positions while aggressively managing our costs and improving free cash flow generation and liquidity.”