Central European Media Enterprises Ltd. Reports Second Quarter and Half Year Results

Net revenues for the second quarter ended June 30, 2013 were US$ 180.2 million compared to US$ 211.2 million for the second quarter of 2012. OIBDA* for the quarter ended June 30, 2013 was US$ 7.0 million compared to US$ 47.1 million for the three months ended June 30, 2012. Operating loss for the three months ended June 30, 2013 was US$ (5.7) million compared to operating income of US$ 23.7 million for the same period in 2012. Net loss for the three months ended June 30, 2013 was US$ (41.1) million compared to net income of US$ 3.1 million for the same period in 2012. Fully diluted loss per share attributable to CME for the three months ended June 30, 2013 was US$ (0.34) compared to income per share of US$ 0.06 for three months ended June 30, 2012.

Net revenues for the six months ended June 30, 2013 were US$ 317.3 million compared to US$ 378.7 million for the same period in 2012. OIBDA for the six months ended June 30, 2013 was US$ (13.6) million compared to US$ 61.2 million for the same period in 2012. Operating loss for the six months ended June 30, 2013 was US$ (40.7) million compared to operating income of US$ 13.3 million in 2012. Net loss for the first half ended June 30, 2013 was US$ (150.1) million compared to US$ (10.7) million for the same period in 2012. Fully diluted loss per share attributable to CME for the six months ended June 30, 2013 was US$ (1.42) compared to US$ (0.14) for six months ended June 30, 2012.

Adrian Sarbu, President and Chief Executive Officer of CME, commented: "In the first half of 2013 we stood firm on the execution of our strategy. We secured double digit TV advertising price increases in the Czech Republic and single digit increases in the other countries on commitments signed. We raised carriage fees in Romania and Bulgaria which for the coming years are expected to more than double compared to 2012. We also repurchased EUR 206 million of debt with proceeds from our successful equity offerings during the quarter. Our products are performing better than last year.

Looking back, 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.

Looking forward, 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."

*OIBDA, which includes program rights amortization costs, is determined as operating income / (loss) before depreciation, amortization of intangible assets and impairments of assets as defined in "Segment Data" below.

For more details please see the attached press release.