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Analysts welcome CME’s Ukraine deal

Analysts have welcomed CME’s sale of Ukrainian broadcaster 1+1.

The central and eastern Europe-focused broadcast group announced the US$300m (€331m) deal to offload 1+1 last month and ratings agency Moody’s noted this week: “The business was not expected to reach EBITDA break-even level before 2012 and was therefore undermining the company’s operating cash flow generation capacity and credit metrics.” Moody’s also welcomed CME’s US$400m acquisition of Bulgarian free-to-air broadcaster bTV. It noted: “The transactions in Bulgaria and Ukraine should improve the company’s business risk profile as its focus will have moved away from developing operations; and should increase its consolidated EBITDA.”