Central European Media Enterprises (CME) had a difficult first quarter, its net revenues of $167,433,000 (€126,493,000) being 3.1% lower than in the same period last year.
Its operating loss meanwhile rose by 34.4% to $10,303,000, though the net loss attributable to the company fell by 36.6% to $13,329,000.
CME’s broadcast segment saw a 6.8% year-on-year fall in revenues to $146,797,000, while new media, while still a small fraction of the total, rose by 40.4% to $3,679,000.
Media Pro Entertainment’s revenues meanwhile rose by 8% year-on-year to $43,405,000. It also registered the strongest growth in OIBDA, up by 130.8% year-on-year to $1,671,000.
Revenues fell in all but one (Slovenia) of the six CEE markets the company has a presence in.
Separately, CME has entered into a series of agreements with its major shareholders in order to reduce its debts.
They will see Time Warner provide a loan of up to $300 million that can only be used for purchasing notes validly tendered and accepted by payment by CME in the Debt Tenders Offers and Time Warner Media Holdings and RSL Capital, affiliated to Ronald Lauder, buy around 11.5 million of CME’s Class A shares at $7.51 per share.
Commenting on the results, Adrian Sarbu, president and CEO of CME, said: “We are taking significant steps to deleverage with support from two of our largest shareholders, Time Warner and Ronald Lauder. These steps, together with the planned expansion of subscription revenues, will position the company for growth in the future. Our priority in 2012 is to maintain our audience and market share leadership, grow OIBDA and deliver positive free cash flow.”
