Central European Media Enterprises (CME) saw its actual net income fall by 23.7% year-on-year to $8,970,000 in the first quarter.
Its actual net revenues were 1.9% lower at $143,816,000 and OIBDA down by 2.3% to $37,171,000. In its latest set of results, the company says that the biggest year-on-year fall in both net revenues was in Bulgaria (-12.1% and -21.3% respectively), while Slovakia enjoyed the biggest growth (+3.8% and +128.2% respectively). Meanwhile TV ad revenues decreased by 4% at actual rates and 1% at constant rates and carriage fees and subscription fees and revenues increased by 7% at actual rates and 11% at constant rates.
CME also says that it expects its acquisition by the Czech Republic’s PPF Group to be completed in the third quarter of this year.
Commenting on the results, co-CEOs Michael Del Nin and Christoph Mainusch said: “Our businesses enjoyed a strong start to the year, although economic uncertainty related to the COVID-19 pandemic resulted in reductions in spending overall by advertisers in March, which has continued into April and is expected to negatively impact our financial performance in the second quarter. We have rapidly implemented adjustments to our cost base to mitigate this decline in advertising, and we have the ability to make further adjustments if necessary. After one of our strongest ever quarters in terms of cash generation, and with a strong balance sheet that has benefited from significant deleveraging over the past several years, we are well positioned to respond to the uncertainty created by the pandemic.”
