Romania, Czech bolster CME recovery

Central European Media Enterprises (CME)-owned networks in Romania and Czech Republic are helping the broadcast group to recover from stinging financial losses suffered over the past 18 months.

CME reported second quarter revenue had risen to US$205m, up from $176m on this time last year.

The group, in which US giant Time Warner holds a majority stake, operates channels across Central and Eastern Europe (CEE) including bTV in Bulgaria, Nova TV in Croatia and the Czech Republic, and Romania’s Pro TV.

Romania was the firm’s best market and helped operating income to rise to $23m for the three months ending June 30, compared to a loss of $5m in 2013.

Christoph Mainusch, co-CEO, said: “We reduced content costs while maintaining our audience share leadership, despite competition from the FIFA World Cup. This is proof of the strength of our content.”

Michael Del Nin, co-CEO, added that the results demonstrated “the continuing significant improvement in the company’s financial position and provide further evidence that our turnaround is well underway.”

CME suffered an advertising collapse in its key markets that threatened the future of the firm last year and saw both Del Nin and Mainusch brought in to turn the company around.

The firm also agreed a deal with major shareholder Time Warner, which helped to allay fears that the company’s future could be in doubt and saw the US firm’s stake rise to 75.1%.