UPDATE 1-Broadcaster CME Q3 gets Ukraine election lift

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By Gavin Haycock

Television broadcaster Central European Media Enterprises said demand for advertising in the run-up to Ukraine's general election helped lift third-quarter net revenue to a higher-than-forecast $174.8 million.

CME , whose stock trades in Prague and on the U.S. Nasdaq, said net revenue for the quarter ended Sept. 30 rose 55 percent from $112.5 million in the same quarter a year ago.

The revenue figure forecast by a Reuters survey of six analysts was $153.2 million, in a $138-161 million range.

At 1700 GMT, CME shares were up 8.9 percent at $119.5 on Nasdaq, while the Prague-traded shares ended up 1.8 percent, a marked recovery from the 5 percent fall seen earlier in the day.

Within Ukraine, revenues from CME's majority-owned Studio 1+1 station jumped to $39.6 million from $15.6 million a year earlier, while underlying earnings jumped to $16.6 million from a $838,000 loss.

Ukraine is the company's largest market among the six central European countries in which CME operates. In September, Ukraine businessman Igor Kolomoisky, invested $110 million for a stake of around 3 percent in CME and joined the board.

Chief Executive Michael Garin told analysts on a conference call the broadcaster launched numerous political shows before the September elections, generating strong advertising revenues.

"This could indicate that CME's difficulties in this country could largely be over," said Prague-based Atlantik FT analyst Patrick Vyroubal.

He said CME's results were stronger than forecast in Ukraine and in line with expectations in the business's other countries.

CME's third-quarter net income from continuing operations fell $25 million to an $18.8 million loss during the third quarter, while the diluted loss per share from continuing operations was 45 cents, against earnings of 15 cents a year ago.

CME Chief Financial Officer Wallace MacMillan said the declines were partly due to hit from the company having to translate euro-denominated debt back into dollars at the end of each quarter, and changes in the fair value of its derivatives.

[LONDON/Reuters/Finance.cz]