(Repeats story published late on Wednesday)
* Three-month segment EBITDA $19.7 mln, above forecast
* Sees bottom to ad spend decline within a year
* Shares climb up to 10 pct on figures hitting forecasts
By Jason Hovet
PRAGUE, April 29 (Reuters) - Central European Media
Enterprises (CME) warned declining advertising spending will
persist in its emerging Europe markets even into early next year
after the broadcaster reported "its toughest quarter" ever.
CME <CETV.O> <> said on Wednesday its first-quarter
core profit plunged 74 percent to $19.7 million, while revenue,
which is booked in battered local currencies, fell 37 percent to
$141.2 million due also to a stronger dollar.
Both figures were in line with CME's guidance in March.
The Bermuda-registered broadcaster received a shot in the
arm last month when Time Warner <TWX.N> agreed to take a 31
percent stake for $241.5 million.
"Uncertainty about TV ad spending in 2009 will persist," CME
said in an investor presentation. "We believe the decline in TV
ad spend will reach bottom between the third quarter of 2009 and
first quarter of 2010."
Breaking tradition, the company declined to provide a more
detailed full-year guidance, only saying that conditions in the
second quarter would be similar to the first.
CME shares jumped as much as 10 percent in Prague and 9
percent on the Nasdaq by late afternoon as investors breathed a
sigh of relief that the results were not as bad as some feared.
The global downturn has pushed CME's seven markets in
central and eastern Europe such as Ukraine and the Czech
Republic to or near the brink of recession, squeezing the
advertising sales that makes up most of its stations' earnings.
"The results confirmed 2009 will be a tough year," Komercni
Banka analyst Josef Nemy said, noting double digit declines in
ad spending.
Core profit measured by segment EBITDA, or profit of
individual stations excluding interest, tax, depreciation,
amortisation and general corporate costs, fell to $19.7 million.
Analysts polled by Reuters gave an average estimate for
$18.8 million.
CME posted an attributable net loss of $44.4 million in the
first quarter, narrower than estimates and compared to profit of
$14.4 million a year ago.
"The first quarter of 2009 was the toughest in our history
across all markets," CME President and Chief Operating Officer
Adrian Sarbu said in a statement.
CME said its stations, most dominant in the Czech Republic
and Romania, gained market share on an annual basis.
It said the ad spending outlook remained grim as the
region's businesses suffer under falling consumer spending,
rising unemployment and lost orders from western customers.
CME shares are down 76.4 percent over the past 12 months,
underperforming a 46.5 percent fall in the Prague index <>.
But the stock has nearly doubled in price since the announcement
of the Time Warner deal on March 23.
Also on Wednesday, Time Warner Inc posted a quarterly profit
ahead of expectations as a rise in cable networks revenue helped
offset declines in advertising sales at its AOL Internet and
Time Inc publishing units. []
(Reporting by Jason Hovet; Editing by Chris Borowski and Andrew
Macdonald)
