PRAGUE: The regional media giant Central European Media Enterprises (CME) reported a one percent decline in net revenues contrasting with a six percent increase in operating income for 2019, and a one percent decline in net revenues for the fourth quarter of 2019.
Exchange rates accounted for the decline in net revenues. Measuring by constant rates, CME boasted a five percent increase for 2019. Investor confidence in the company also rose. CME stock gained over 50 percent in value over the same time period. The stock traded on NASDAQ at 2.89 USD at the start of January 2019, and closed at 4.51 USD on 6 February 2020, continuing to hover around that price since the beginning of 2020.
The decline was primarily attributed to a decrease of 6.6 percent in net revenues at CME’s operations in Romania, with Bulgaria accounting for a decrease of 1.4 percent. Revenues in the Czech Republic, Slovakia and Slovenia rose between 1.1 to 1.5 percent.
CME is in the process of a merger with the Czech powerhouse investment company PPF Group, that is expected to be completed in mid-2020, which was cited as the reason that the company did not hold a conference call to discuss results.
CME broadcasts 30 television channels in Bulgaria, the Czech Republic, Romania, Slovakia and Slovenia, able to reach a population of 45 million.