CME’s ‘painful’ losses

Chris Forrester

European broadcaster CME has unveiled its 1H numbers, and they are not good.

NASDAQ-registered CME, which beams network TV channels to countries in Central and Eastern Europe, said its revenues were down 38% in the first half of 2009, generating a total of $327.4m (US$231m). A first-half last year operating profit of US$144.2m was reversed to an operating loss of US$72.8m in the same period this year. Newly-appointed CEO Adrian Sarbu said that advertising markets were badly hit and were now at 2007 levels.

"This has been a painful process for us and our shareholders," Sarbu said. "The strength of our brands and businesses has been demonstrated throughout this crisis by our improved audience share and market share in all our core operations. We are now looking forward to recovery."

CME largest market is the Czech Republic and this suffered especially badly, with revenues plummeting to only $237.6m during the half-year ($198m last year).

CME has also bought MediaPro, founded by Mr Sarbu, which distributes and produces content in the region.