Central European Media Enterprises Reports Fourth Quarter and
Full Year Results
GlobeNewswire
2010-02-24
Fourth Quarter 2009
Net Revenues of $252.1 million
EBITDA of $ 44.1 million
Full Year 2009
Net Revenues of $714.0 million
EBITDA of $74.9 million
HAMILTON, Bermuda, Feb. 24, 2010 (GLOBE NEWSWIRE) -- European Media
Enterprises Ltd. ("CME" or the "Company") (Nasdaq:CETV) (Prague Stock
Exchange:CETV) today announced financial results for the fourth quarter
and full-year ended December 31, 2009.
Net revenues for the fourth quarter of 2009 decreased 14% to $252.1
million, compared to the fourth quarter of 2008. EBITDA for the quarter
decreased 45% to $44.1 million. Operating income for the quarter
increased $302.2 million to $23.0 million. Net loss attributable to the
shareholders of CME for the quarter was $(55.3) million compared to
$(328.1) million for the three months ended December 31, 2008. Fully
diluted loss per share for the three months ended December 31, 2009
decreased $6.86 to $(0.89).
Net revenues for the year ended December 31, 2009 decreased 30% to
$714.0 million, compared to the year ended December 31, 2008. EBITDA
for the year decreased 75% to $74.9 million. Operating loss decreased
$44.6 million from $(127.8) million to $(83.2) million. The operating
loss in 2009 includes an impairment charge of $81.8 million relating to
the Company's Bulgarian operations. Net loss attributable to the
shareholders of CME for the year was $(97.2) million compared to
$(269.5) million for the year ended December 31, 2008. Fully diluted
loss per share for the year ended December 31, 2009 decreased $4.58 to
$(1.79).
Adrian Sarbu, President and Chief Executive Officer of CME, commented:
"An unprecedented economic crisis in our region reset TV ad spending
30% below 2008. US$ 800m of TV ad spend vanished in one year,
dramatically reducing our revenues. In this difficult environment we
strengthened our operations by maintaining audience share leadership,
increasing market share and redefining ourselves as a vertically
integrated media company. We are making the necessary corrections to
our portfolio to achieve positive EBITDA in all our operations in 2010.
This year we will focus our energy on increasing profitability across
our three new divisions -- broadcasting, internet and content."
Consolidated Results for the Three Months Ended December 31, 2009
Consolidated net revenues for the three months ended December 31, 2009
decreased by 14% to $252.1 million from $291.5 million for the three
months ended December 31, 2008. Operating income for the quarter was
$23.0 million compared to a loss of $(279.2) million for the three
months ended December 31, 2008. Net loss attributable to the
shareholders of CME for the quarter was $(55.3) million compared to
$(328.1) million for the three months ended December 31, 2008. Fully
diluted loss per share for the three months ended December 31, 2009
decreased $6.86 to $(0.89).
EBITDA(1) for the three months ended December 31, 2009 decreased to
$44.1 million from $79.8 million in the three months ended December 31,
2008. EBITDA margin for the three months ended December 31, 2009 was
18% compared to 27% in the three months ended December 31, 2008.
Headline Consolidated Results for the three months ended December 31,
2009 and 2008 were:
--------------------------------- ---------------------------------------------
CONSOLIDATED RESULTS (Unaudited)
--------------------------------- ---------------------------------------------
For the Three Months Ended December 31, 2009
(US $000's)
--------------------------------- ---------------------------------------------
%
2009 2008 $ change change
--------------------------------- ------------ ----------- ---------- ------
Net revenues $ 252,090 $ 291,501 $ (39,411) (14)%
--------------------------------- ------------ ----------- ---------- ------
EBITDA $ 44,126 $ 79,773 $ (35,647) (45)%
--------------------------------- ------------ ----------- ---------- ------
Operating income / (loss) $ 23,049 $ (279,169) $ 302,220 108%
--------------------------------- ------------ ----------- ---------- ------
Net loss attributable to CME $ (55,250) $ (328,127) $ 272,877 83%
--------------------------------- ------------ ----------- ---------- ------
Fully diluted loss per share $ (0.89) $ (7.75) $ 6.86 89%
--------------------------------- ------------ ----------- ---------- ------
--------------------------------------------------------------------------------
Consolidated Results for the Year Ended December 31, 2009
Consolidated net revenues for the year ended December 31, 2009
decreased by 30% to $714.0 million from $1,019.9 million for the year
ended December 31, 2008. Operating loss for the year was $(83.2)
million compared to $(127.8) million for the year ended December 31,
2008. Net loss attributable to the shareholders of CME for the year was
$(97.2) million compared to $(269.5) million for the year ended
December 31, 2008. Fully diluted loss per share for the year ended
December 31, 2009 decreased $4.58 to $(1.79).
EBITDA for the year ended December 31, 2009 decreased to $74.9 million
from $296.9 million in the year ended December 31, 2008. EBITDA margin
for the year ended December 31, 2009 was 10% compared to 29% in the
year ended December 31, 2008.
------------------------------------------------------------------------------------------------------------------------
(1) EBITDA is defined in 'Segment Data' below, and includes corporate operating costs and stock-based compensation. We define
EBITDA margin as EBITDA expressed as a percentage of net revenues. Consolidated EBITDA is equal to the EBITDA for each of our
segments less corporate costs (which include non-cash stock-based compensation).
Headline results for the year ended December 31, 2009 and 2008 were:
--------------------------------- ----------------------------------------------
CONSOLIDATED RESULTS
--------------------------------- ----------------------------------------------
For the Year Ended December 31,
(US $000's)
--------------------------------- ----------------------------------------------
%
2009 2008 $ change change
--------------------------------- ------------ ----------- ----------- ------
Net revenues $ 713,978 $ 1,019,934 $ (305,956) (30)%
--------------------------------- ------------ ----------- ----------- ------
EBITDA $ 74,903 $ 296,893 $ (221,990) (75)%
--------------------------------- ------------ ----------- ----------- ------
Operating loss $ (83,180) $ (127,797) $ 44,617 35%
--------------------------------- ------------ ----------- ----------- ------
Net loss attributable to CME $ (97,157) $ (269,546) $ 172,389 64%
--------------------------------- ------------ ----------- ----------- ------
Fully diluted loss per share $ (1.79) $ (6.37) $ 4.58 72%
--------------------------------- ------------ ----------- ----------- ------
---------------------------------------------------------------------------------
Operating Results
We evaluate the performance of our operations based on net revenues and
EBITDA (earnings before interest, taxes, depreciation and
amortization).
Our net revenues, Consolidated EBITDA and EBITDA margin for the three
months ended December 31, 2009 and 2008 were:
--------------------------------- ------------------------------------------
OPERATING RESULTS (Unaudited)
--------------------------------- ------------------------------------------
For the Three Months Ended December 31,
(US $000's)
--------------------------------- ------------------------------------------
%
2009 2008 $ change change
--------------------------------- ----------- --------- ---------- ------
Net revenues -- Broadcast
operations $ 245,677 $ 288,898 $ (43,221) (15)%
--------------------------------- ----------- --------- ---------- ------
Net revenues -- Internet
operations 3,577 2,603 974 37%
--------------------------------- ----------- --------- ---------- ------
Net revenues -- Content
operations 5,396 -- 5,396 -- %
--------------------------------- ----------- --------- ---------- ------
Eliminations (2,560) -- (2,560) -- %
--------------------------------- ----------- --------- ---------- ------
Net revenues $ 252,090 $ 291,501 $ (39,411) (14)%
--------------------------------- ----------- --------- ---------- ------
EBITDA --Broadcast operations $ 61,532 $ 96,137 $ (34,605) (36)%
--------------------------------- ----------- --------- ---------- ------
EBITDA -- Internet operations (2,832) (2,548) (284) (11)%
--------------------------------- ----------- --------- ---------- ------
EBITDA -- Content operations (266) -- (266) -- %
--------------------------------- ----------- --------- ---------- ------
EBITDA -- Corporate (13,975) (13,816) (159) (1)%
--------------------------------- ----------- --------- ---------- ------
Eliminations (333) -- (333) -- %
--------------------------------- ----------- --------- ---------- ------
Consolidated EBITDA $44,126 $79,773 $ (35,647) (45)%
--------------------------------- ----------- --------- ---------- ------
EBITDA Margin 18% 27%
--------------------------------- ----------- --------- ---------- ------
Our net revenues, Consolidated EBITDA and EBITDA margin for the year
ended December 31, 2009 and 2008 were:
--------------------------------- ---------------------------------------------
OPERATING RESULTS (Unaudited)
--------------------------------- ---------------------------------------------
For the Year Ended December 31,
(US $000's)
--------------------------------- ---------------------------------------------
%
2009 2008 $ change change
--------------------------------- ----------- ----------- ----------- ------
Net revenues -- Broadcast
operations $ 701,024 $ 1,010,403 $ (309,379) (31)%
--------------------------------- ----------- ----------- ----------- ------
Net revenues -- Internet
operations 10,118 9,531 587 6%
--------------------------------- ----------- ----------- ----------- ------
Net revenues -- Content
operations 5,396 -- 5,396 --%
--------------------------------- ----------- ----------- ----------- ------
Eliminations (2,560) -- (2,560) -- %
--------------------------------- ----------- ----------- ----------- ------
Net revenues $ 713,978 $ 1,019,934 $ (305,956) (30)%
--------------------------------- ----------- ----------- ----------- ------
EBITDA --Broadcast operations $ 123,424 $ 354,388 $ (230,964) (65)%
--------------------------------- ----------- ----------- ----------- ------
EBITDA -- Internet operations (9,771) (8,708) (1,063) (12)%
--------------------------------- ----------- ----------- ----------- ------
EBITDA -- Content operations (266) -- (266) -- %
--------------------------------- ----------- ----------- ----------- ------
EBITDA -- Corporate (38,151) (48,787) 10,636 22%
--------------------------------- ----------- ----------- ----------- ------
Eliminations (333) -- (333) -- %
--------------------------------- ----------- ----------- ----------- ------
Consolidated EBITDA $ 74,903 $ 296,893 $ (221,990) (75)%
--------------------------------- ----------- ----------- ----------- ------
EBITDA Margin 10% 29%
--------------------------------- ----------- ----------- ----------- ------
CME will host a teleconference and video webcast to discuss its fourth
quarter and full year 2009 results on Wednesday, February 24, 2010 at 9
a.m. New York time (2 p.m. London and 3 p.m. Prague time). The video
webcast and teleconference will refer to presentation slides which will
be available on CME's Website www.cetv-net.com prior to the call.
To access the teleconference, U.S. and International callers may dial
+1 785-424-1051 ten minutes prior to the start time and reference
passcode: 7CETVQ4. The conference call will be video webcasted live via
www.cetv-net.com.
The video webcast will be archived on www.cetv-net.com for two weeks.
Additionally, a digital audio replay in MP3 format will be available
for two weeks following the call on CME's website.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements. For all
forward-looking statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
inherently subject to risks and uncertainties, many of which cannot be
predicted with accuracy or are otherwise beyond our control and some of
which might not even be anticipated. Forward-looking statements reflect
our current views with respect to future events and because our
business is subject to such risks and uncertainties, actual results,
our strategic plan, our financial position, results of operations and
cash flows could differ materially from those described in or
contemplated by the forward-looking statements.
For a more detailed description of these uncertainties and other
factors, please see the "Risk Factors" section in our Annual Report on
Form 10-K for the year ended December 31, 2009, which was filed with
the Securities and Exchange Commission on February 24, 2010. We
undertake no obligation to publicly update or review any
forward-looking statements, whether as a result of new information,
future developments or otherwise.
This press release should be read in conjunction with our Annual Report
on Form 10-K for the year ended December 31, 2009, which was filed with
the Securities and Exchange Commission on February 24, 2010. We make
available, free of charge, on our website at www.cetv-net.com our
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and amendments to those reports as soon as
reasonably practicable after we electronically file such material with,
or furnish it to, the Securities and Exchange Commission.
CME is a vertically integrated media company operating leading
broadcasting, internet and TV content businesses in seven Central and
Eastern European countries with an aggregate population of
approximately 97 million people. CME's television stations are located
in Bulgaria (Pro.bg and Ring.bg), Croatia (Nova TV), Czech Republic (TV
Nova, Nova Cinema, Nova Sport and MTV Czech), Romania (PRO TV, PRO TV
International, Acasa, PRO Cinema, Sport.ro and MTV Romania), Slovakia
(TV Markiza, Doma), Slovenia (POP TV, Kanal A and TV Pika) and Ukraine
(Studio 1+1, Studio 1+1 International and Kino). CME is traded on the
NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".
For additional information, please visit www.cetv-net.com.
CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ 000's, except share and per share data)
For the Year Ended December 31,
---------------------------------
2009 2008 2007
--------- ----------- ---------
Net revenues $713,978 $1,019,934 $838,856
Operating expenses:
Operating costs 134,095 145,210 116,859
Cost of programming 389,900 438,203 327,230
Depreciation of station property, plant
and equipment 53,651 51,668 32,653
Amortization of broadcast licenses and
other intangibles 21,597 35,381 24,970
--------- ----------- ---------
Cost of revenues 599,243 670,462 501,712
Selling, general and administrative
expenses 116,072 140,517 126,688
Impairment charge 81,843 336,752 --
--------- ----------- ---------
Operating (loss) / income (83,180) (127,797) 210,456
Interest expense, net (112,855) (72,475) (49,208)
Foreign currency exchange gain /
(loss), net 82,461 (37,877) (34,409)
Change in fair value of derivatives 1,315 6,360 (3,703)
Other income 1,521 2,620 7,891
--------- ----------- ---------
(Loss) / income from continuing
operations before tax (110,738) (229,169) 131,027
Credit / (provision) for income taxes 3,193 (34,525) (20,822)
--------- ----------- ---------
(Loss) / income from continuing
operations (107,545) (263,694) 110,205
Discontinued operations, net of tax (262) (3,785) (4,480)
--------- ----------- ---------
Net (loss) / income (107,807) (267,479) 105,725
Net loss / (income) attributable to
noncontrolling interests 10,650 (2,067) (17,107)
--------- ----------- ---------
Net (loss) / income attributable to CME $(97,157) $(269,546) $88,618
--------- ----------- ---------
PER SHARE DATA:
Net (loss) / income per share:
Continuing operations -- Basic $(1.78) $(6.28) $2.25
Continuing operations -- Diluted (1.78) (6.28) 2.23
Discontinued operations -- Basic (0.01) (0.09) (0.11)
Discontinued operations -- Diluted (0.01) (0.09) (0.11)
Net (loss) / income attributable to CME
-- Basic (1.79) (6.37) 2.14
Net (loss) / income attributable to CME
-- Diluted $(1.79) $(6.37) $2.12
Weighted average common shares used in
computing per share amounts (000's):
Basic 54,344 42,328 41,384
Diluted 54,344 42,328 41,833
CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ 000's, except share and per share data)
(Unaudited)
For the Three Months
Ended December 31,
---------------------
2009 2008
--------- ----------
Net revenues $252,090 $291,501
Operating expenses:
Operating costs 37,321 36,978
Cost of programming 130,828 130,977
Depreciation of station property,
plant and equipment 15,350 12,632
Amortization of broadcast licenses
and other intangibles 5,546 9,318
--------- ----------
Cost of revenues 189,045 189,905
Selling, general and administrative
expenses 39,996 44,013
Impairment charge -- 336,752
--------- ----------
Operating income / (loss) 23,049 (279,169)
Interest expense, net (44,002) (20,854)
Foreign currency exchange loss, net (31,194) (32,290)
Change in fair value of derivatives 5,759 20,031
Other income 1,130 1,013
--------- ----------
Loss from continuing operations
before tax (45,258) (311,269)
Provision for income taxes (13,421) (15,047)
--------- ----------
Loss from continuing operations (58,679) (326,316)
Discontinued operations, net of tax -- (1,251)
--------- ----------
Net loss $(58,679) $(327,567)
Net loss / (income) attributable to
noncontrolling interests 3,429 (560)
--------- ----------
Net loss attributable to CME $(55,250) $(328,127)
--------- ----------
PER SHARE DATA:
Net (loss) / income per share:
Continuing operations -- Basic and
Diluted $(0.89) $(7.72)
Discontinued operations -- Basic
and Diluted $0.00 $(0.03)
Net loss attributable to CME --
Basic and Diluted $(0.89) $(7.75)
Weighted average common shares used
in computing per share amounts
(000's):
Basic and Diluted 61,887 42,337
Segment Data
Until December 31, 2009, we managed our business on a geographic basis,
and reviewed the performance of each segment using data that reflected
100% of operating and license company results. Our segments were
comprised of Bulgaria, Croatia, the Czech Republic, Romania, the Slovak
Republic, Slovenia, Ukraine and Media Pro Entertainment. From January
1, 2010, we have divided our business into three divisions --
broadcast, internet and content -- and will report our performance on
that basis from now on. We evaluate the performance of our segments
based on net revenues and EBITDA, which is also used as a component in
determining management bonuses.
EBITDA is determined as net income / (loss), which includes costs for
program rights amortization costs, before interest, taxes, depreciation
and amortization of intangible assets. Items that are not allocated to
our segments for purposes of evaluating their performance and therefore
are not included in EBITDA, include foreign currency exchange gains and
losses; changes in the fair value of derivatives; and certain unusual
or infrequent items (e.g., impairments of assets or investments).
Below are tables showing each of our net revenues, EBITDA,
depreciation, amortization and impairment and operating income / (loss)
by operation for the three months and the year ended December 31, 2009
and 2008:
For the Three Months For the Year Ended
Ended December 31 December 31
--------------------- -----------------------
2009 2008 2009 2008
---------- --------- ---------- -----------
Net Revenues
Bulgaria (1) $ 1,123 $ 801 $ 3,520 $ 1,263
Croatia 17,939 16,498 49,139 54,651
Czech Republic 94,427 105,816 275,883 376,546
Romania 55,879 77,508 176,501 274,627
Slovak Republic 39,250 44,566 107,356 132,692
Slovenia 22,969 22,305 66,710 80,697
Ukraine 17,667 24,007 32,033 99,458
Romania (Media
Pro
Entertainment)
(2) 5,396 -- 5,396 --
---------- --------- ---------- -----------
Total Operating
Segments $ 254,650 $ 291,501 $ 716,538 $ 1,019,934
Corporate -- -- -- --
Elimination (2,560) -- (2,560) --
Total $ 252,090 $ 291,501 $ 713,978 $ 1,019,934
---------- --------- ---------- -----------
---------- --------- ---------- -----------
EBITDA
Bulgaria (1) $ (15,072) $ (7,084) $ (44,774) $ (10,185)
Croatia 1,585 1,033 223 (5,415)
Czech Republic 47,262 62,201 128,463 208,655
Romania 9,314 29,998 38,510 111,783
Slovak Republic 7,166 21,270 13,880 50,228
Slovenia 8,728 8,054 17,822 25,413
Ukraine (283) (21,883) (40,471) (34,799)
Romania (Media
Pro
Entertainment)
(2) (266) -- (266) --
---------- --------- ---------- -----------
Total Operating
Segments $ 58,434 $ 93,589 $ 113,387 $ 345,680
Corporate (13,975) (13,816) (38,151) (48,787)
Elimination (333) -- (333) --
---------- --------- ---------- -----------
Total $ 44,126 $ 79,773 $ 74,903 $ 296,893
---------- --------- ---------- -----------
(1) We acquired our Bulgaria operations on August 1, 2008.
(2) We acquired Media Pro Entertainment on December 9, 2009.
For the Three Months
Ended For the Year Ended
December 31 December 31
------------------------ ------------------------
2009 2008 2009 2008
---------- ------------ ----------- -----------
Depreciation,
Amortization and
Impairment
Bulgaria (1) $ 808 $ 66,956 $ 86,084 $ 68,312
Croatia 1,553 1,425 5,468 6,198
Czech Republic 8,428 9,431 28,632 41,165
Romania 3,818 3,567 14,303 15,148
Slovak Republic 3,225 2,592 12,226 10,988
Slovenia 1,811 1,294 6,343 5,526
Ukraine 956 273,437 3,738 276,464
Romania (Media
Pro
Entertainment)
(2) 297 -- 297 --
---------- ------------ ----------- -----------
Total Operating
Segments $ 20,896 $ 358,702 $ 157,091 $ 423,801
Corporate 181 240 992 889
Elimination -- -- -- --
Total $ 21,077 $ 358,942 $ 158,083 $ 424,690
---------- ------------ ----------- -----------
---------- ------------ ----------- -----------
(1) We acquired our Bulgaria operations on August 1, 2008.
(2) We acquired Media Pro Entertainment on December 9, 2009.
Operating income
/ (loss)
Bulgaria (1) $ (15,880) $ (74,040) $ (130,858) $ (78,497)
Croatia 32 (392) (5,245) (11,613)
Czech Republic 38,834 52,770 99,831 167,490
Romania 5,496 26,431 24,207 96,635
Slovak Republic 3,941 18,678 1,654 39,240
Slovenia 6,917 6,760 11,479 19,887
Ukraine (1,239) (295,320) (44,209) (311,263)
Romania (Media
Pro
Entertainment)
(2) (563) -- (563) --
---------- ------------ ----------- -----------
Total Operating
Segments $ 37,538 $ (265,113) $ (43,704) $ (78,121)
Corporate (14,156) (14,056) (39,143) (49,676)
Elimination (333) -- (333) --
---------- ------------ ----------- -----------
Total $ 23,049 $ (279,169) $ (83,180) $ (127,797)
---------- ------------ ----------- -----------
(1) We acquired our Bulgaria operations on August 1, 2008.
(2) We acquired Media Pro Entertainment on December 9, 2009.
CONTACT: Central European Media Enterprises
Romana Tomasova, Vice President - Corporate Communications
+420 242 465 525
romana.tomasova@cme-net.com
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