Central European Media Enterprises Ltd. Reports Third Quarter and Nine Months Ended September 30, 2013 Results

Central European Media Enterprises Ltd. Reports Third Quarter and Nine Months
Ended September 30, 2013 Results

                                THIRD QUARTER
                    - Net revenues of US$ 135.8 million -
                       - OIBDA of US$ (32.4) million -

                                 NINE MONTHS
                    - Net revenues of US$ 453.1 million -
                       - OIBDA of US$ (46.1) million -

HAMILTON, Bermuda, Oct. 30, 2013 (GLOBE NEWSWIRE) -- Central European Media
Enterprises Ltd. ("CME" or the "Company") (Nasdaq:CETV) (Prague Stock
Exchange:CETV) today announced financial results for the three and nine months
ended September 30, 2013.

Net revenues for the third quarter ended September 30, 2013 were US$ 135.8
million compared to US$ 140.1 million for the third quarter of 2012. OIBDA^1
for the quarter ended September 30, 2013 was US$ (32.4) million compared to
US$ 3.5 million for the three months ended September 30, 2012. Operating loss
for the three months ended September 30, 2013 was US$ (45.0) million compared
to US$ (18.4) million for the same period in 2012. Net loss for the three
months ended September 30, 2013 was US$ (23.3) million compared to US$ (32.6)
million for the same period in 2012. Fully diluted loss per share attributable
to CME for the three months ended September 30, 2013 was US$ (0.16) compared
to US$ (0.36) for three months ended September 30, 2012.

Net revenues for the nine months ended September 30, 2013 were US$ 453.1
million compared to US$ 518.7 million for the same period in 2012. OIBDA for
the nine months ended September 30, 2013 was US$ (46.1) million compared to
US$ 64.7 million for the same period in 2012. Operating loss for the nine
months ended September 30, 2013 was US$ (85.6) million compared to US$ (5.1)
million in 2012. Net loss for the nine months ended September 30, 2013 was US$
(173.3) million compared to US$ (43.3) million for the same period in 2012.
Fully diluted loss per share attributable to CME for the nine months ended
September 30, 2013 was US$ (1.45) compared to US$ (0.57) for nine months ended
September 30, 2012.

Michael Del Nin, co-Chief Executive Officer, commented: "Christoph and I find
this level of performance unacceptable and have directed all of our energy
since starting with CME a few weeks ago to addressing the major reasons for
these financial results and making changes to improve them going forward."

Christoph Mainusch, co-Chief Executive Officer, added: "Our leading audience
shares give us a strong advantage over our competition, and we intend to
capitalize on this by concentrating our efforts on improving the monetization
of our audiences. Improving the performance of our Czech operations is the top
priority. We believe that rebuilding our relationships with agencies and
clients while protecting price increases achieved during the year is an
essential step to improving our competitive position in that market."

^1 OIBDA, which includes program rights amortization costs, is determined as
operating income / loss before depreciation, amortization of intangible assets
and impairments of assets as defined in "Segment Data" below.

Consolidated Results for the Three Months Ended September 30, 2013

Net revenues for the three months ended September 30, 2013 were US$ 135.8
million compared to US$ 140.1 million for the three months ended September 30,
2012. Operating loss for the three months ended September 30, 2013 was US$
(45.0) million compared to US$ (18.4) million for the three months ended
September30, 2012.Net loss for the three months ended September30, 2013 was
US$ (23.3) million compared to US$ (32.6) million for the three months ended
September30, 2012.Fully diluted loss per share attributable to CME for the
three months ended September30, 2013 was US$ (0.16) compared to US$ (0.36)
for the three months ended September30, 2012.

OIBDA for the three months ended September30, 2013 was US$ (32.4) million
compared to US$ 3.5 million in the same period ended September30, 2012. OIBDA
margin^2 for the three months ended September30, 2013 was (23.9)% compared to
2.5% for the three months ended September30, 2012.

The decline in OIBDA significantly outpaced the decline in revenues during the
three months ended September 30, 2013. This decrease in OIBDA is primarily
attributable to an increase in content costs of US$ 15.1 million, including
US$ 9.0 million of accelerated amortization of program rights, US$ 4.2 million
of restructuring charges, US$ 6.4 million of severance costs, and
approximately US$ 5.0 million of operating and other costs, as well as a
weaker dollar.

Headline consolidated results for the three months ended September30, 2013
and 2012 were:

                            
                            RESULTS
(US$000's)                   For the Three Months Ended September 30,
(unaudited)                  2013       2012       % Actual  % Lfl^3
Net revenues                 $ 135,838  $ 140,092  (3.0)%    (7.5)%
OIBDA                        (32,444)   3,508      Nm^4      Nm^4
Operating loss               (44,967)   (18,401)   (144.4)%  (130.1)%
Net loss                     (23,273)   (32,637)   28.7%     50.4%
Fully diluted loss per share $(0.16)   $(0.36)   Nm^4      Nm^4

Consolidated Results for the Nine Months Ended September30, 2013

Net revenues for the nine months ended September30, 2013 were US$ 453.1
million compared to US$ 518.7 million for the nine months ended September30,
2012.Operating loss for the nine months ended September30, 2013 was US$
(85.6) million compared to US$ (5.1) million for the nine months ended
September30, 2012.Net loss for the nine months ended September30, 2013 was
US$ (173.3) million compared to US$ (43.3) million for the nine months ended
September30, 2012.Fully diluted loss per share attributable to CME for the
nine months ended September30, 2013 was US$ (1.45) compared to US$ (0.57) for
the nine months ended September30, 2012.

OIBDA for the nine months ended September30, 2013 was US$ (46.1) million
compared to US$ 64.7 million in the same period ended September30, 2012.
OIBDA margin for the nine months ended September30, 2013 was (10.2)% compared
to 12.5% for the nine months ended September30, 2012.

Headline consolidated results for the nine months ended September30, 2013 and
2012 were:

                          
                          RESULTS
(US$000's)                 For the Nine Months Ended September 30,
(unaudited)                2013          2012          % Actual     % Lfl
Net revenues               $ 453,125     $ 518,747     (12.7)%      (13.4)%
OIBDA                      (46,060)      64,680        Nm^4         Nm^4
Operating loss             (85,635)      (5,054)       Nm^4         Nm^4
Net loss                   (173,324)     (43,309)      Nm^4         Nm^4
Fully diluted loss per     $(1.45)      $(0.57)      Nm^4         Nm^4
share

^2OIBDA margin is defined as the ratio of OIBDA to Net revenues.
^3 % Lfl (like-for-like) represents period-on-period percentage change on a
constant currency basis.
^4Number is not meaningful.


Outlook

We previously expected the consumption of GRPs by advertisers in the Czech
Republic during the fall season of this year to return to levels similar to
that of 2012. Based on a combination of the current level of commitments, the
continued weakness in demand for GRPs from advertisers during October as the
fall season rolls out, and on-going feedback received from advertisers and
agencies, we no longer believe this will be the case.

Our revised full year outlook is for revenue between US$ 640 million and US$
650 million and OIBDA between US$ (40) million and US$ (30) million reflecting
lower expectations for our operations in the Czech Republic and the Slovak
Republic, as well as higher than expected restructuring charges, unanticipated
severance costs, non-cash accelerated amortization of programming, and the
timing of carriage fee increases primarily in Romania and the Czech Republic.
Our current forecast of free cash flow^5 for the full year of 2013 is now
approximately US$ (140) million. We now expect to end the year with a cash
balance of approximately US$ 60 million.

We continue to take steps to conserve cash, including targeted reductions to
our operating cost base through cost optimization programs and restructuring
efforts, the deferral of programming commitments and capital expenditures and
the deferral and cancellation of development projects. Due to the level of
negative free cash flow anticipated for 2013, we will need additional capital
and we are currently evaluating all options available to us, including debt
and equity financings, asset sales and the renegotiation of payment
obligations with a number of major suppliers. In this respect, we are in
discussion with Time Warner Inc. regarding a possible capital transaction,
including debt, to address our liquidity position. These discussions are
preliminary and there are no assurances regarding the ultimate outcome. If we
are unable to secure additional financing, we will be unable to meet our debt
service obligations and generally fund our operations sometime within the next
twelve months.

^5Free cash flow is defined as cash flows from operating activities less
purchases of property, plant and equipment, net of disposals of property,
plant and equipment and is useful as a measure of our ability to generate
cash.

Teleconference and Audio Webcast Details

CME will host a teleconference and audio webcast to discuss its third quarter
results on Wednesday, October 30, 2013 at 10a.m. New York time (2 p.m. London
and 3 p.m. Prague time). The audio webcast and teleconference will refer to
presentation slides which will be available on CME's website at www.cme.net
prior to the call.

To access the teleconference, U.S. and international callers may dial
+1-785-424-1825 ten minutes prior to the start time and reference passcode
CETVQ313. The conference call will be audio webcasted via www.cme.net. It can
be heard on iPads, iPhones and a range of devices supporting Android and
Windows operating systems.

The audio webcast and a digital audio replay in MP3 format will be available
for two weeks following the call at www.cme.net.

CME will post the results for the nine months ended September30, 2013 for its
wholly-owned subsidiary CET 21 spol. s r.o. at www.cme.net by Friday, December
13, 2013.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements. For all
forward-looking statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are inherently subject to risks
and uncertainties, many of which cannot be predicted with accuracy or are
otherwise beyond our control and some of which might not even be
anticipated.Forward-looking statements reflect our current views with
respect to future events and because our business is subject to such risks and
uncertainties, actual results, our strategic plan, our financial position,
results of operations and cash flows could differ materially from those
described in or contemplated by the forward-looking statements.

Important factors that contribute to such risks include, but are not limited
to, the following: our ability to access external sources of capital in light
of our current significant liquidity constraints and our poor financial
performance; the impact of our efforts to increase our revenues and recapture
advertising market share in the Czech Republic; decreases in TV advertising
spending and the rate of development of the advertising markets in the
countries in which we operate; the effect of the economic downturn and
Eurozone instability in our markets and the extent and timing of any recovery;
our success in implementing our initiatives to diversify and enhance our
revenue streams; the extent to which our debt service obligations restrict our
business; our ability to make cost-effective investments in television
broadcast operations, including investments in programming; our ability to
develop and acquire necessary programming and attract audiences; changes in
the political and regulatory environments where we operate and application of
relevant laws and regulations; and the timely renewal of broadcasting licenses
and our ability to obtain additional frequencies and licenses.

The foregoing review of important factors should not be construed as
exhaustive. For a more detailed description of these uncertainties and other
factors, please see the "Risk Factors" and "Forward-looking Statements"
sections in CME's Quarterly Report on Form 10-Q for the period ended
September30, 2013. We undertake no obligation to publicly update or review
any forward-looking statements, whether as a result of new information, future
developments or otherwise.

This press release should be read in conjunction with our Quarterly Report on
Form 10-Q for the period ended September30, 2013, which was filed with the
Securities and Exchange Commission on October 30, 2013.

We make available free of charge on our website at www.cme.net our Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K and amendments to those reports as soon as reasonably practicable after we
electronically file such material with, or furnish it to, the Securities and
Exchange Commission.

CME is a media and entertainment company operating leading businesses in six
Central and Eastern European markets with an aggregate population of
approximately 50 million people. CME broadcasts television channels in
Bulgaria (bTV, bTV Cinema, bTV Comedy, bTV Action, bTV Lady and Ring.bg),
Croatia (Nova TV, Doma, Nova World and MiniTV), the Czech Republic (TV Nova,
Nova Cinema, Nova Sport, Fanda, Smichov, Telka and MTV Czech), Romania (PRO
TV, PRO TV International, Acasa, Acasa Gold, PRO Cinema, Sport.ro, MTV
Romania, PRO TV Chisinau and Acasa Moldova), the Slovak Republic (TV Markiza,
Doma, Dajto and Fooor), and Slovenia (POP TV, Kanal A, Brio, Oto and Kino).
CME also operates Voyo, the pan-regional video-on-demand service. CME is
traded on the NASDAQ Global Select Market and the Prague Stock Exchange under
the ticker symbol "CETV".


CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ 000's, except per share data)
(unaudited)
                                                                
                                                   
                                                   For the Three Months Ended
                                                    September 30,
                                                   2013          2012
Net revenues                                        $ 135,838     $ 140,092
Operating expenses:                                              
Content costs                                       90,652        75,584
Other operating costs                               34,211        33,340
Depreciation of property, plant and equipment       8,623         11,711
Amortization of broadcast licenses and other        3,900         10,198
intangibles
Cost of revenues                                    137,386       130,833
Selling, general and administrative expenses        39,227        27,660
Restructuring costs                                 4,192         —
Operating loss                                      (44,967)      (18,401)
Interest expense, net                               (23,748)      (32,279)
Foreign currency exchange gain, net                 43,767        16,755
Change in fair value of derivatives                 —             559
Other (expense) / income, net                       (298)         108
Loss before tax                                     (25,246)      (33,258)
Credit for income taxes                             1,973         621
Net loss                                            (23,273)      (32,637)
Net loss attributable to noncontrolling interests   182           588
Net loss attributable to CME Ltd.                   $(23,091)    $(32,049)
                                                                
PER SHARE DATA:                                                  
Net loss per share attributable to CME Ltd.:                     
Net loss per share - Basic and diluted              $ (0.16)      $ (0.36)
                                                                
Weighted average common shares used in computing                 
per share amounts (000's):
Basic and diluted                                   145,695       88,134




CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ 000's, except per share data) (continued)
(unaudited)

                                                    
                                                    For the Nine Months Ended
                                                     September 30,
                                                    2013          2012
Net revenues                                         $ 453,125     $ 518,747
Operating expenses:                                               
Content costs                                        277,016       252,338
Other operating costs                                104,597       101,098
Depreciation of property, plant and equipment        27,806        34,338
Amortization of broadcast licenses and other         11,769        35,396
intangibles
Cost of revenues                                     421,188       423,170
Selling, general and administrative expenses         108,682       100,631
Restructuring costs                                  8,890         —
Operating loss                                       (85,635)      (5,054)
Interest expense, net                                (86,643)      (94,847)
(Loss) / gain on extinguishment of debt              (23,115)      448
Foreign currency exchange gain / (loss), net         9,010         (163)
Change in fair value of derivatives                  104           48,884
Other (expense) / income, net                        (785)         159
Loss before tax                                      (187,064)     (50,573)
Credit for income taxes                              13,740        7,264
Net loss                                             (173,324)     (43,309)
Net loss attributable to noncontrolling interests    995           1,824
Net loss attributable to CME Ltd.                    $(172,329)   $(41,485)
                                                                 
PER SHARE DATA:                                                   
Net loss per share attributable to CME Ltd.:                      
Net loss per share - Basic and diluted               $(1.45)      $(0.57)
                                                                 
Weighted average common shares used in computing per              
share amounts (000's):
Basic and diluted                                    118,944       73,065



CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(US$ 000's)
(unaudited)


                                                   September30, December31,
                                                    2013          2012
ASSETS                                                           
Cash and cash equivalents                           $ 122,880     $ 140,393
Other current assets                                334,165       378,158
Total current assets                                457,045       518,551
Property, plant and equipment, net                  197,452       206,706
Goodwill and other intangible assets, net           1,117,792     1,121,479
Other non-current assets                            347,411       327,979
Total assets                                        $ 2,119,700   $ 2,174,715
LIABILITIES AND EQUITY                                           
Accounts payable and accrued liabilities            $ 275,688     $ 255,681
Current portion of long-term debt and other         2,034         21,918
financing arrangements
Other current liabilities                           35,616        13,765
Total current liabilities                           313,338       291,364
Long-term portion of long-term debt and other       946,030       1,198,873
financing arrangements
Other non-current liabilities                       56,169        53,211
Total liabilities                                   $ 1,315,537   $ 1,543,448
                                                                
Series B Convertible Redeemable Preferred Stock     $ 204,032     $ —
                                                                
EQUITY                                                           
Common Stock                                        $ 10,759      $ 6,174
Additional paid-in capital                          1,705,663     1,556,250
Accumulated deficit                                 (1,157,594)   (982,513)
Accumulated other comprehensive income              37,384        46,150
Total CME Ltd. shareholders' equity                 596,212       626,061
Noncontrolling interests                            3,919         5,206
Total equity                                        $ 600,131     $ 631,267
Total liabilities and equity                        $ 2,119,700   $ 2,174,715



CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(US$ 000's)

                                                    
                                                    For the Nine Months Ended
                                                     September 30,
                                                    2013         2012
Net cash used in operating activities                $ (56,466)   $ (56,900)
Net cash used in investing activities                (20,667)     (21,081)
Net cash provided by financing activities            60,115       14,633
Impact of exchange rate fluctuations on cash and     (495)        2,620
cash equivalents
Net decrease in cash and cash equivalents            $ (17,513)   $ (60,728)
                                                                
                                                                
Net cash used in operating activities                $ (56,466)   $ (56,900)
Capital expenditure, net of proceeds from disposals  (20,667)     (21,081)
Free cash flow                                       $ (77,133)   $ (77,981)
                                                                
                                                                
Supplemental disclosure of cash flow information:                
Cash paid for interest                               $ (87,151)   $ (83,925)
Cash paid for income taxes (net of refunds)          (6,110)      (5,940)

Segment Data

From January 1, 2013 we manage our business on a geographical basis, with six
reporting segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak
Republic and Slovenia.

We evaluate the performance of our segments based on Net revenues and OIBDA.
OIBDA, a non-GAAP measure, which includes program rights amortization costs,
is determined as operating income / loss before depreciation, amortization of
intangible assets and impairments of assets. Items that are not allocated to
our segments for purposes of evaluating their performance and therefore are
not included in their OIBDA, include stock-based compensation and certain
other items. We believe OIBDA is useful to investors because it provides a
more meaningful representation of our performance, as it excludes certain
items that do not impact either our cash flows or the operating results of our
operations.OIBDA is also used as a component in determining management
bonuses. Intersegment revenues and profits have been eliminated in
consolidation.OIBDA may not be comparable to similar measures reported by
other companies.

Below are tables showing our Net revenues and OIBDA by segment for the three
and nine months ended September30, 2013 and 2012, together with a
reconciliation of OIBDA to our Condensed Consolidated Statements of
Operations:

                                               
(US $000's)           For the Three Months Ended For the Nine Months Ended
                      September 30,              September 30,
(unaudited)           2013          2012         2013         2012
Net revenues                                               
                                                          
                                                          
Bulgaria              $ 17,925      $ 15,128     $ 58,594     $ 57,414
Croatia               10,938        9,827        40,827       39,564
Czech Republic        39,363        51,566       121,854      187,377
Romania               45,775        39,847       141,836      134,975
Slovak Republic       13,275        17,633       52,198       61,595
Slovenia              10,212        10,013       43,412       46,440
Intersegment revenues (1,650)       (3,922)      (5,596)      (8,618)
Total net revenues    $ 135,838     $ 140,092    $ 453,125    $ 518,747

                                                  
                                                  
(US $000's)              For the Three Months Ended For the Nine Months Ended
                         September 30,              September 30,
(unaudited)              2013           2012        2013          2012
OIBDA                                                          
                                                              
Bulgaria                 $ 1,601        $ 498       $ 3,105       $ 2,653
Croatia                  16             (717)       3,585         6,242
Czech Republic           (3,772)        11,232      (10,291)      65,899
Romania                  (3,702)        3,881       5,216         14,509
Slovak Republic          (6,092)        (3,061)     (10,216)      (1,188)
Slovenia                 (4,000)        (1,606)     2,072         7,247
Elimination              (171)          (192)       197           (828)
Total Operating Segments $(16,120)     $ 10,035    $(6,332)     $ 94,534
Central                  (16,324)       (6,527)     (39,728)      (29,854)
Total OIBDA              $(32,444)     $ 3,508     $(46,060)    $ 64,680

                                                   
                                                   
(US $000's)               For the Three Months Ended For the Nine Months Ended
                          September 30,              September 30,
(unaudited)               2013          2012         2013          2012
Reconciliation to
Condensed Consolidated                                          
Statements of Operations:
                                                               
Total OIBDA               $ (32,444)   $ 3,508      $(46,060)    $ 64,680
Depreciation of property, (8,623)       (11,711)     (27,806)      (34,338)
plant and equipment
Amortization of           (3,900)       (10,198)     (11,769)      (35,396)
intangible assets
Operating loss            $(44,967)    $(18,401)   $(85,635)    $(5,054)
Interest expense, net     (23,748)      (32,279)     (86,643)      (94,847)
(Loss) / gain on          —             —            (23,115)      448
extinguishment of debt
Foreign currency exchange 43,767        16,755       9,010         (163)
gain / (loss), net
Change in fair value of   —             559          104           48,884
derivatives
Other (expense) / income, (298)         108          (785)         159
net
Credit for income taxes   1,973         621          13,740        7,264
Net loss                  $(23,273)    $(32,637)   $(173,324)   $(43,309)

                                                  
                                                  
(US $000's)                                        Guidance Range for the Year
                                                   Ended December 31, 2013
(unaudited)                                        Low           High
Reconciliation to Condensed Consolidated                        
Statements of Operations:
Total OIBDA                                        $ (40,000)    $(30,000)
Depreciation of property, plant and equipment      (40,500)      (40,500)
Amortization of intangible assets                  (15,700)      (15,700)
Operating loss                                     $(96,200)    $ (86,200)

CONTACT: For additional information,
         please visit www.cme.net or contact:
        
         Mark Kobal
         Head of Investor Relations
         Central European Media Enterprises
         +420 242 465 576
         mark.kobal@cme.net
 
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