Central European Media Enterprises Ltd. jumped the most in six months after the unprofitable television broadcaster agreed to refinance part of its debt at more favorable terms.
CME obtained a 469 million-euro ($517 million) loan guaranteed by its main shareholder, Time Warner Inc., and will use the funds to repay notes and a loan due in 2017 at lower interest costs, the Bermuda-registered company said in a statement on Monday. It also extended the maturities of other debt, while reporting a net loss and a revenue decline for last year.
“The earnings were clearly worse than the consensus, but it looks like the market has only focused on the successful debt refinancing today,” Miroslav Frayer, an equity analyst at Komercni Banka AS in Prague, said by e-mail. “The debt refinancing will help improve the company’s overall profitability, which should in turn have a positive impact on our earnings estimates.”
The shares, which are listed in the U.S. and the Czech Republic, jumped 11% to 61.9 koruna as of 2:19 p.m. in Prague. The stock was still down 7.6 percent this year and valued the company at 8.41 billion koruna ($343 million).
The company’s net loss from continuing operations narrowed to $102 million in 2015 from $151 million in the previous year. Revenue declined 11 percent to $606 million last year.