Central and eastern European broadcaster Central European Media Enterprises (CME) saw revenues fall 15% as it continues to deal with struggling advertising markets in CEE. This comes as the company cut its debt by US$185 million in July through its deal with US media firm Time Warner, which increased its stake in CME to 49.9%.
Revenue fell to US$211 million (€172 million) in its second quarter results, while core profit at the company, which runs networks in six countries across the region, fell 25% to US$47.1 million with net profit at US$4 million.
Adrian Sarbu, CME’s president and CEO, said: “By July 3, 2012 we had completed transactions with our major shareholders, Time Warner and Ronald Lauder, which reduced our debt by US$185 million. Despite a 7% decline in advertising spending for the first half, our revenues year-on-year were flat in constant currencies, driven by growth in Media Pro Entertainment and New Media, where Voyo became a leader in the subscription video-on-demand segment. In the second half of the year, we will continue to focus on deleveraging, maintaining our leading audience and market shares, expanding non-advertising revenues, and delivering positive free cash flow.”