PRO TV parent company sees revenues fall and profits widen in Q1, but Romanian division performs better

Central European Media Enterprises (CME),the parent company of Romania's Pro TV channel, has recorded revenues of just over USD 42 million in Romania in the first quarter of 2013. Revenues were down slightly compared to Q1 2012, when they reached over USD 43.3 million. OIBDA (operating income before depreciation and amortization) profits in Romania were USD 959,000 in Q1 2013, down from some USD 1.1 million last year. Apart from Slovenia, Romania was the only market in which CME recorded profits. Romania's revenues were the highest of the six countries where CME operates, as the Czech Republic saw a big drop off in revenues and lost the number one spot. At a group level, losses widened and revenues fell sharply from Q1 2012. Net revenues in the first quarter of 2013 were USD 137 million, down USD 30.4 million from the USD 167.4 million recorded in the same period last year. Group level OIBDA losses widened to USD 20.7 million, compared to a USD 14.1 million OIBDA loss in the first quarter of 2012. CME President and CEO Adrian Sarbu blamed the falls in revenues and increasing losses to policies implemented by the firm. “We raised advertising prices and carriage fees. The first quarter results reflect the initial phase of implementing these actions. While successful in most of our countries, we met some resistance from certain media agencies and advertisers in the Czech Republic where consumption of GRPs declined, impacting our revenues and OIBDA,” said Sarbu. CME is a media and entertainment company operating businesses in six Central and Eastern European markets with an aggregate population of approximately 50 million people. As well as Romania, CME operates in Bulgaria, Croatia, the Czech Republic, the Slovak Republic and Slovenia. The company's channels in Romania are PRO TV, PRO TV International, Acasa, Acasa Gold, PRO Cinema, Sport.ro, MTV Romania, PRO TV Chisinau Moldova and Acasa Moldova. CME also operates Voyo, the pan-regional video-on-demand service. CME is traded on the NASDAQ Global Select Market and the Prague Stock Exchange under the ticker symbol “CETV”. editor@romania-insider.com