Broadcaster CME Q2 revenue up, sees challenging H2

Revenue for broadcaster Central European Media Enterprises (CME) rose 10.3 per cent to $201.7m in the second quarter with the acquisition of a Bulgarian TV station offsetting falling ad income. The figure beat the average estimate of $190.2m in a Reuters poll and overcame a 4 per cent decline in TV ad revenue in CME's six central and eastern European markets. Core profit, measured by earnings before interest, tax, depreciation and amortisation (EBITDA), grew to $46.2m from $45.8m, beating estimates.

Net income, hurt by unfavourable currency developments in CME markets, was $165.2m on the back of a $217.6m gain from the sale of Ukrainian operations during the quarter. "The first half of the year was difficult with only the Czech Republic and Slovenia starting to recover," Chief Executive Adrian Sarbu said. CME, whose biggest markets include the Czech Republic and Romania, completed the $413m acquisition of Bulgaria's bTV in April. Partly owned by Time Warner and US investor Ronald Lauder, CME battled a 30 per cent decline in spending on TV ads in 2009 after the financial crisis swept through its once-booming emerging markets at the end of 2008. CME shares have gained 2.4 per cent so far in 2010, below a 6.5 per cent rise in Prague's main index.