Central European Media Ltd., the broadcaster co-owned by Time Warner Inc., headed to its lowest level in about two months after the company cut its full-year guidance and cautioned against market developments in the fourth quarter.
The Bermuda-based operator of television channels in central and eastern Europe, known as CME, dropped 10.99 koruna, or 8.6 percent, to 117.01 koruna as of 9:25 a.m. in Prague trading as of 9:25 a.m. That’s the lowest level since Sept. 6 based on closing stock prices.
The prospects for the full year “indicate” that advertising markets are not recovering, Chief Executive Officer Adrian Sarbu said in a regulatory filing today. The advertising spending in the second half of the year hasn’t matched expectations, he said.
CME also cut its full-year forecast for Oibda, or operating income before depreciation and amortization, to be between $130 million and $140 million, compared with a previous $150 million to $160 million forecast.
CME said its third-quarter net loss shrank to $32.6 million from $82.2 million from a year earlier. Net revenue in the period declined 15 percent to $140.1 million.
CME is “seriously cautious” towards the fourth-quarter performance, Ceska Sporitelna AS’ analyst Vaclav Kminek wrote in a note to clients. The “significant” cut for full-year forecast is definitely “negative” news for the stock, Kminek wrote. He recommends investors to “hold” the shares.
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