CME Forecasts Improved Second Half

HAMILTON: Releasing its first-quarter results today—with revenues up 5 percent to $143.6 million but a wider net loss of $42.3 million—Central European Media Enterprises (CME) is expecting a better second half, forecasting single-digit ad growth in the region.

Announcing the results, Adrian Sarbu, the president and CEO, noted: "The recent completion of the Ukraine and Bulgaria transactions has consolidated our leaderships across all our six home markets. We have rebuilt CME as a vertically integrated media and entertainment company to better face the challenges in our industry. Demand for TV advertising continued to decline in the first quarter although at a slower pace. Central and Eastern Europe will gradually emerge from the crisis during the first half of 2010 and in the second half the demand for TV advertising is expected to show single-digit growth. As recovery progresses we will convert our leading audience and market shares into strong revenues and operating margins.”

Total broadcast revenues were $135.4 million, with an EBITDA of $17.8 million, while Media Pro Entertainment contributed $28 million and new media $2 million.