CME Posts Loss, Cuts Forecasts

HAMILTON: Central European Media Enterprises (CME) posted net revenues for the third quarter of $135.8 million, compared to the year-ago period's $140.1 million, with OIBDA for the quarter having gone from a positive $3.5 million in 2012 to a loss of $32.4 million.

The new management at CME called the latest set of financial results "unacceptable."

Operating loss for the three months ended September 30 was $45 million compared to the loss of $18.4 million in the same period in 2012. Net loss was $23.3 million compared to the $32.6 million for 2012's Q3.

Michael Del Nin, co-CEO, commented: "Christoph and I find this level of performance unacceptable and have directed all of our energy since starting with CME a few weeks ago to addressing the major reasons for these financial results and making changes to improve them going forward."
 
Christoph Mainusch, co-CEO, added: "Our leading audience shares give us a strong advantage over our competition, and we intend to capitalize on this by concentrating our efforts on improving the monetization of our audiences. 

Improving the performance of our Czech operations is the top priority. 

We believe that rebuilding our relationships with agencies and clients while protecting price increases achieved during the year is an essential step to improving our competitive position in that market."

CME now expects a full-year OIBDA loss of $40 million to $30 million and revenue between $640 million and $650 million. It previously expected 2013 revenue of $700 million to $720 million and positive OIBDA of $50 million to $70 million. It also said that it is in talks with Time Warner about a possible capital transaction to secure extra financing.