Broadcast group Central European Media Enterprises (CME) reported a 14.7% year-on-year drop in revenues and swung to a net loss of US$41 million (€30.9 million) in Q2 after a poor performance in the Czech Republic.
Revenues for the three months ending June 30 were US$180 million, down from US$211 million for the same period last year. The double digit net loss compares to net profits of US$3.14 million in Q2 2012.
Core earnings – operating income before depreciation and amortisation (OIBDA) – dropped 85% year-on-year to US$7.05 million.
Commenting on the results, CME president and CEO Adrian Sarbu said: “lower revenues in the Czech Republic impacted our financial results in the second quarter and first half of 2013 as certain key advertisers have only recently accepted our higher prices.”
However, he remained upbeat about the firm’s future prospects. Sarbu said: “We expect the declining trend of TV advertising spending to reverse in the fall of 2013 building on our pricing initiatives. We believe the successful execution of our strategy puts the company back on the path to growth in 2014.”
The results follow a poor Q1 for CME, which is part owned by Time Warner, with revenues plummeting and losses widening as its OIBDA went into the red.