Central European Media Enterprises (CME) has posted net revenues of $129,000 for the first quarter, a 2.3% increase (4.3% like-for-like) on the same period in 2015.
Its OIBDA was $17,108,000 (49.4%, 43.9%) and operating income $7,763,000, the latter contrasting with a loss of $17,239,000 a year earlier. Its net loss was $40,435,000, compared to one of $73,274,000 in Q1 2015.
CME notes that its TV ad revenues increased by 4% at constant rates in Q1 and its market share increased in its two largest markets. Furthermore, carriage fees and subscription revenues increased 6% at constant rates due to growth in the number of subscribers as well as new channel launches.
Commenting on the results, Michael Del Nin, co-CEO, said: “The year is off to a strong start and this quarter’s results reinforce our ability to drive continued margin expansion, as revenues improved with no increase in our overall cost base compared to last year. The strong improvement in OIBDA, paired with a surge in unlevered free cash flow generation, provides more resources this year for paying interest and guarantee fees in cash. Combined with the recently completed refinancing transaction, which has significantly lowered our average borrowing cost, this bolsters our plan to reduce leverage in the coming years.”
Christoph Mainusch, co-CEO, added: “We maintained our audience share leadership in all countries during the first quarter while controlling costs, and the full roll-out of our spring season has improved our audience results since the end of March 2016. Several new local productions debuted towards the end of the quarter, and some are growing in popularity. The strength of our existing channels as well as new channels also drove an increase in carriage fees and subscription revenues during the quarter.”
