PRAGUE: Leading CEE TV and media company Central European Media Enterprises (CME, www.cetv-net.com) announced third quarter 2012 net revenues of US$ 140.1 m, compared to US$ 165.5 m in the same period in 2011, a decline of 15.3%. CME shares followed suit with a one-day loss of nearly 20%.
Shares on NASDAQ dropped from a high of 6.77 on 30 October 2012 to a low of 5.12 in heavy trading after the announcement, leveling off at 5.43 at close of trading on 2 November. The stock has lost 53.5% of its value in the past 12 months.
In a statement, CME president and CEO Adrian Sarbu said, “Our third quarter results and the prospects for the full year 2012 indicate that our markets are not recovering. In the second half of 2012 advertising spending has not matched our expectations.” Prospects for Q4 were revised downwards to reflect a weakened advertising market indicating further disappointment during the traditionally stronger holiday season.
Net revenues for the nine months ending 30 September 2012 were also down, at US$ 518.7 million compared to US$ 587.9 million for the same period in 2011. OBIDA was even worse, dropping 60.6% in Q3 (to US$ 3.5 m) and 24.6% for the nine-month period (to US$ 64.7 m). The Broadcast segment accounted for the greatest loss.
The brightest spot was the company’s production activities as Media Pro Entertainment. Net revenues for Q3 were US$ 44.8 m, a growth of 27.4%. The smaller New Media segment also grew, rising by 16.5% to US$ 3.78 m.