CME Reports Positive Q2, First-Half Revenues

BERMUDA: Central European Media Enterprises (CME) reported a 24-percent year-on-year rise in second-quarter revenue to $249.7 million.

Operating income before depreciation and amortisation (OIBDA) increased 35.7 percent to $62.7 million. Net income from continuing operations was $812,000, compared with a loss of $52.9 million a year earlier. Operating income increased to $39.5 million.

For the six months ended June 30, net revenues were up 22 percent to $422.4 million. OIBDA for H1 increased to $76.9 million, a 64-percent gain. Operating income grew to $31.8 million. In its half-year results, CME narrowed its net loss from continuing operations from 2010’s $94.9 million to $20.2 million.

Adrian Sarbu, CME’s president and CEO, commented: “Our Revenues and OIBDA increased 24 percent and 36 percent, respectively. This improvement was driven by our strong brands, leading audience shares in broadcasting and fast growth in Media Pro Entertainment and New Media divisions. Our operations performed better than advertising markets which in Q2 contracted by 3 percent. However, based on continuing improvements in macroeconomic indicators, we foresee a growth trend in all our TV advertising markets in the second half of the year. We are best positioned in the region to take advantage of this trend and deliver growth in Revenues, OIBDA and free cash flow.”

For Q2, broadcast revenues were up 20.1 percent to $228.9 million. Media Pro Entertainment contributed $51.25 million, a 33.8-percent gain. Revenues from new media were up 57.5 percent to $4.61 million.

For the first-half, broadcast revenues were up 18.6 percent to $386.5 million, while Media Pro added $91.4 million with a 37.8-percent increase in revenues. New media nearly doubled, with a 46.1-percent increase in revenues to reach $7.23 million.