Central European Media Enterprises Ltd. Reports Second Quarter and First Half 2011 Results

Net revenues for the second quarter of 2011 increased US$ 47.9 million to US$ 249.7 million compared to the second quarter of 2010. OIBDA¹ for the quarter increased by US$ 16.5 million to US$ 62.7 million. Operating income for the quarter increased by US$ 14.0 million to US$ 39.5 million. Net income from continuing operations for the quarter improved to US$ 0.8 million compared to a loss of US$ (52.9) million for the second quarter of 2010.

Net revenues for the six months ended June 30, 2011 increased US$ 77.1 million to US$ 422.4 million compared to the first half of 2010. OIBDA¹ for the first half increased by US$ 29.9 million to US$ 76.9 million. Operating income for the six months increased by US$ 25.5 million to US$ 31.8 million. Net loss from continuing operations for the half year improved to US$ (20.2) million compared to US$ (94.9) million for the first half of 2010. Free cash flow for the six months ended June 30, 2011 improved to US$ $14.8 million from US$ (40.0) million.

Adrian Sarbu, CME's President and CEO commented: "Our Revenues and OIBDA increased 24% and 36% respectively. This improvement was driven by our strong brands, leading audience shares in broadcasting and fast growth in Media Pro Entertainment and New Media divisions. Our operations performed better than advertising markets which in Q2 contracted by 3%. However, based on continuing improvements in macroeconomic indicators, we foresee a growth trend in all our TV advertising markets in the second half of the year. We are best positioned in the region to take advantage of this trend and deliver growth in Revenues, OIBDA and free cash flow."