PRAGUE: Central European Media Enterprises (CME) announced a 7 percent growth in net revenues for the first quarter of 2018, at 139 M USD.
The Czech Republic, which accounts for the largest portion of CME’s income, had growth of 6.5 percent in constant rates, at 51.5 M USD. Bulgaria had the largest bump in net revenues, 10.2 percent, coming in at 19.4 M USD. Romania saw revenue growth of 5.4 percent, at 46 M USD, and Slovakia had an increase of 8.6 percent, at 23 M USD.
The company expects to close the sale of operations in Croatia and Slovenia during the second quarter of 2018. CME also announced debt repricing with reduced borrowing costs.
Michael Del Nin, Co-Chief Executive Officer, commented: "Today’s series of announcements bode very well for the future of CME. Firstly, the financial results for Q1 represent our strongest start to any year in a decade. The increase in profitability and cash flow generation in the quarter have helped drive down our leverage ratio and, when paired with the proceeds from warrants that have now been exercised, allow us to complete another key step in our ongoing deleveraging plan. But just as importantly, the new refinancing transactions, which address the maturity profile of our debt and significantly cut our borrowing costs to record lows, put in place the capital structure that we need for the exciting next phase of the company’s future."
Christoph Mainusch, Co-Chief Executive Officer, added: "We won the prime time grid in each country nearly every night during the quarter, which contributed to significant revenue growth. Our channels provide extensive reach for advertisers because they continue to be the most popular source of news and entertainment in our countries. We will invest in local content, while focusing on controlling costs overall, and remain market leaders in our territories."