Central Media Enterprises (CME), the owner of the biggest local media company Pro TV, is selling the Croatia and Slovenia operations of Slovenia Broadband for EUR 230 million, the company announced.

CME expects the sale to go through by the end of the year.

The sum received from the transaction will be used to reimburse a EUR 250.8 million loan due in 2018. The repayment of the loan will reduce CME’s average borrowing cost to 4.5%.

Croatia and Slovenia accounted for 18% of CME’s net revenue of USD 638 million in 2016. Still, the two markets brought it only 9% of its total operating income before depreciation and amortization (OIBDA).

CME is present in six Eastern European markets, and its operations in the Czech Republic and Romania are the most profitable ones. CME owns in Romania the TV stations PRO TV, PRO TV International, Acasa, Acasa Gold, PRO Cinema, Sport.ro and MTV Romania, in addition to several websites. The Romanian operations include the TV stations it owns in the Republic of Moldova, meaning PRO TV Chisinau and Acasa in Moldova.

The company reported revenues of USD 38.9 million in Romania in the first quarter of this year, up 20.3% like-for-like. Romania also became the most profitable market for CME in the first quarter, after a 62% lfl increase in OIBDA, to USD 14.7 million.

editor@romania-insider.com