BERMUDA
|
98-0438382
|
(State
or other jurisdiction of incorporation and organization)
|
(IRS
Employer Identification No.)
|
Clarendon
House, Church Street, Hamilton
|
HM
11 Bermuda
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer T
|
Accelerated
filer £
|
Non-accelerated
filer £
|
Class
|
Outstanding
as of October 30, 2007
|
Class
A Common Stock, par value $0.08
|
35,961,948
|
Class
B Common Stock, par value $0.08
|
6,312,839
|
Page
|
|||
Part
I. Financial information
|
|||
2
|
|||
4
|
|||
6
|
|||
7
|
|||
8
|
|||
41
|
|||
84
|
|||
85
|
|||
Part
II. Other Information
|
|||
86
|
|||
89
|
|||
97
|
|||
97
|
|||
98
|
|||
99
|
September 30,
2007
|
December 31,
2006
|
|||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ |
192,569
|
$ |
145,904
|
||||
Restricted
cash (Note 6)
|
1,246
|
4,954
|
||||||
Accounts
receivable (net of allowance) (Note 7)
|
149,540
|
152,505
|
||||||
Income
taxes receivable
|
3,222
|
3,053
|
||||||
Program
rights, net
|
72,533
|
59,645
|
||||||
Other
current assets (Note 8)
|
70,288
|
47,555
|
||||||
Total
current assets
|
489,398
|
413,616
|
||||||
Non-current
assets
|
||||||||
Investments
|
16,563
|
19,214
|
||||||
Property,
plant and equipment, net (Note 9)
|
154,996
|
115,805
|
||||||
Program
rights, net
|
100,222
|
76,638
|
||||||
Goodwill
(Note 4)
|
1,025,544
|
905,580
|
||||||
Broadcast
licenses, net (Note 4)
|
230,224
|
198,730
|
||||||
Other
intangible assets, net (Note 4)
|
131,170
|
71,942
|
||||||
Other
non-current assets (Note 8)
|
19,420
|
17,475
|
||||||
Total
non-current assets
|
1,678,139
|
1,405,384
|
||||||
Total
assets
|
$ |
2,167,537
|
$ |
1,819,000
|
September 30,
2007
|
December 31,
2006
|
|||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable and accrued liabilities (Note 10)
|
$ |
169,624
|
$ |
119,717
|
||||
Duties
and other taxes payable
|
42,921
|
31,707
|
||||||
Income
taxes payable
|
12,531
|
12,434
|
||||||
Credit
facilities and obligations under capital leases (Note 11)
|
13,371
|
13,057
|
||||||
Dividends
payable to minority shareholders in subsidiaries
|
2,983
|
-
|
||||||
Deferred
consideration – Croatia
|
-
|
4,010
|
||||||
Deferred
consideration – Ukraine
|
-
|
200
|
||||||
Deferred
tax
|
4,213
|
1,836
|
||||||
Total
current liabilities
|
245,643
|
182,961
|
||||||
Non-current
liabilities
|
||||||||
Credit
facilities and obligations under capital leases (Note 11)
|
5,886
|
6,359
|
||||||
Senior
Notes (Note 5)
|
560,045
|
487,291
|
||||||
Income
taxes payable
|
4,719
|
3,000
|
||||||
Deferred
tax
|
76,614
|
58,092
|
||||||
Other
non-current liabilities
|
11,819
|
19,342
|
||||||
Total
non-current liabilities
|
659,083
|
574,084
|
||||||
Commitments
and contingencies (Note 18)
|
||||||||
Minority
interests in consolidated subsidiaries
|
15,780
|
26,189
|
||||||
SHAREHOLDERS'
EQUITY:
|
||||||||
Nil
shares of Preferred Stock of $0.08 each (December 31, 2006 –
nil)
|
-
|
-
|
||||||
35,916,948
shares of Class A Common Stock of $0.08 each (December 31, 2006 –
34,412,138)
|
2,877
|
2,753
|
||||||
6,312,839
shares of Class B Common Stock of $0.08 each (December 31, 2006 –
6,312,839)
|
505
|
505
|
||||||
Additional
paid-in capital
|
1,048,924
|
931,108
|
||||||
Accumulated
deficit
|
(19,372 | ) | (31,730 | ) | ||||
Accumulated
other comprehensive income
|
214,097
|
133,130
|
||||||
Total
shareholders’ equity
|
1,247,031
|
1,035,766
|
||||||
Total
liabilities and shareholders’ equity
|
$ |
2,167,537
|
$ |
1,819,000
|
For
the Three Months Ended
September
30,
|
For
the Nine Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
revenues
|
$ |
174,836
|
$ |
112,482
|
$ |
539,032
|
$ |
388,825
|
||||||||
Operating
costs
|
27,166
|
22,073
|
83,767
|
71,087
|
||||||||||||
Cost
of programming
|
65,909
|
47,920
|
215,035
|
149,188
|
||||||||||||
Depreciation
of station property, plant and equipment
|
8,768
|
6,080
|
23,347
|
17,841
|
||||||||||||
Amortization
of broadcast licenses and other intangibles (Note 4)
|
6,595
|
5,015
|
16,922
|
13,967
|
||||||||||||
Cost
of revenues
|
108,438
|
81,088
|
339,071
|
252,083
|
||||||||||||
Station
selling, general and administrative expenses
|
17,609
|
16,481
|
49,089
|
45,188
|
||||||||||||
Corporate
operating costs
|
13,839
|
8,342
|
30,087
|
24,019
|
||||||||||||
Impairment
charge
|
-
|
-
|
-
|
748
|
||||||||||||
Operating
income
|
34,950
|
6,571
|
120,785
|
66,787
|
||||||||||||
Interest
income
|
1,180
|
1,554
|
4,326
|
4,748
|
||||||||||||
Interest
expense
|
(11,883 | ) | (11,066 | ) | (42,717 | ) | (32,921 | ) | ||||||||
Foreign
currency exchange (loss) / gain, net
|
(23,300 | ) |
6,018
|
(28,552 | ) | (25,469 | ) | |||||||||
Change
in fair value of derivatives (Note 12)
|
(8,555 | ) | (881 | ) |
3,497
|
(2,757 | ) | |||||||||
Other
expense
|
(6,513 | ) | (412 | ) | (13,272 | ) | (793 | ) | ||||||||
(Loss)
/ income before provision for income taxes, minority interest, equity
in
loss of unconsolidated affiliates and discontinued
operations
|
(14,121 | ) |
1,784
|
44,067
|
9,595
|
|||||||||||
Provision
for income taxes
|
(131 | ) | (1,235 | ) | (18,609 | ) | (8,811 | ) | ||||||||
(Loss)
/ income before minority interest, equity in loss of unconsolidated
affiliates and discontinued operations
|
(14,252 | ) |
549
|
25,458
|
784
|
|||||||||||
Minority
interest in income of consolidated subsidiaries
|
(4,511 | ) | (461 | ) | (9,881 | ) | (7,178 | ) | ||||||||
Equity
in loss of unconsolidated affiliates
|
-
|
-
|
-
|
(730 | ) | |||||||||||
Gain
on sale of unconsolidated affiliate
|
-
|
6,179
|
-
|
6,179
|
||||||||||||
Net
(loss) / income from continuing
operations
|
(18,763 | ) |
6,267
|
15,577
|
(945 | ) | ||||||||||
Discontinued
operations (Note 17):
|
||||||||||||||||
Tax
on disposal of discontinued operations (Czech Republic)
|
-
|
(2,333 | ) |
-
|
(4,863 | ) | ||||||||||
Net
loss from discontinued operations
|
-
|
(2,333 | ) |
-
|
(4,863 | ) | ||||||||||
Net
(loss) / income
|
$ | (18,763 | ) | $ |
3,934
|
$ |
15,577
|
$ | (5,808 | ) | ||||||
Currency
translation adjustment, net
|
100,470
|
3,507
|
80,967
|
80,672
|
||||||||||||
Total
comprehensive income
|
$ |
81,707
|
$ |
7,441
|
$ |
96,544
|
$ |
74,864
|
For
the Three Months Ended
September 30,
|
For
the Nine Months Ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
PER
SHARE DATA (Note 15):
|
||||||||||||||||
Net
income / (loss) per share:
|
||||||||||||||||
Continuing
operations – Basic
|
$ | (0.45 | ) | $ |
0.15
|
$ |
0.38
|
$ | (0.02 | ) | ||||||
Continuing
operations – Diluted
|
(0.45 | ) |
0.15
|
0.37
|
(0.02 | ) | ||||||||||
Discontinued
operations – Basic
|
0.00
|
(0.06 | ) |
0.00
|
(0.12 | ) | ||||||||||
Discontinued
operations – Diluted
|
0.00
|
(0.06 | ) |
0.00
|
(0.12 | ) | ||||||||||
Net
income / (loss) – Basic
|
(0.45 | ) |
0.09
|
0.38
|
(0.14 | ) | ||||||||||
Net
income / (loss) – Diluted
|
$ | (0.45 | ) | $ |
0.09
|
$ |
0.37
|
$ | (0.14 | ) | ||||||
Weighted
average common shares used in computing per share amounts
(000’s):
|
||||||||||||||||
Basic
|
41,489
|
40,651
|
41,077
|
39,792
|
||||||||||||
Diluted
|
41,489
|
41,188
|
41,553
|
39,792
|
Class
A Common Stock
|
Class
B Common Stock
|
|||||||||||||||||||||||||||||||
Number
of shares
|
Par
value
|
Number
of shares
|
Par
value
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other Comprehensive Income / (Loss)
|
Total
Shareholders' Equity
|
|||||||||||||||||||||||||
BALANCE,
December 31,
2006
|
34,412,138
|
$ |
2,753
|
6,312,839
|
$ |
505
|
$ |
931,108
|
$ | (31,730 | ) | $ |
133,130
|
$ |
1,035,766
|
|||||||||||||||||
Impact
of adoption of FIN 48
|
-
|
-
|
-
|
-
|
-
|
(3,219 | ) |
-
|
(3,219 | ) | ||||||||||||||||||||||
BALANCE,
upon the adoption of FIN 48
|
34,412,138
|
$ |
2,753
|
6,312,839
|
$ |
505
|
$ |
931,108
|
$ | (34,949 | ) | $ |
133,130
|
$ |
1,032,547
|
|||||||||||||||||
Stock-based
compensation
|
-
|
-
|
-
|
-
|
4,610
|
-
|
-
|
4,610
|
||||||||||||||||||||||||
Shares
issued, net of fees
|
1,275,227
|
102
|
-
|
-
|
109,751
|
-
|
-
|
109,853
|
||||||||||||||||||||||||
Stock
options exercised
|
274,583
|
22
|
-
|
-
|
3,455
|
-
|
-
|
3,477
|
||||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
15,577
|
-
|
15,577
|
|||||||||||||||||||||||||
Currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
80,967
|
80,967
|
|||||||||||||||||||||||||
BALANCE,
September 30,
2007
|
35,961,948
|
$ |
2,877
|
6,312,839
|
$ |
505
|
$ |
1,048,924
|
$ | (19,372 | ) | $ |
214,097
|
$ |
1,247,031
|
Class
A Common Stock
|
Class
B Common Stock
|
|||||||||||||||||||||||||||||||
Number
of Shares
|
Par
Value
|
Number
of Shares
|
Par
Value
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other Comprehensive Income / (Loss)
|
Total
Shareholders' Equity
|
|||||||||||||||||||||||||
BALANCE,
December 31,
2005
|
31,032,994
|
$ |
2,482
|
6,966,533
|
$ |
558
|
$ |
754,061
|
$ | (52,154 | ) | $ | (24,394 | ) | $ |
680,553
|
||||||||||||||||
Stock-based
compensation
|
-
|
-
|
-
|
-
|
2,385
|
-
|
-
|
2,385
|
||||||||||||||||||||||||
Stock
options exercised
|
95,450
|
8
|
100,000
|
8
|
3,608
|
-
|
-
|
3,624
|
||||||||||||||||||||||||
Shares
issued, net of fees
|
2,530,000
|
202
|
-
|
-
|
168,397
|
-
|
-
|
168,599
|
||||||||||||||||||||||||
Conversion
of Class B to Class A Common Shares
|
753,694
|
61
|
(753,694 | ) | (61 | ) |
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(5,808 | ) |
-
|
(5,808 | ) | ||||||||||||||||||||||
Currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
80,672
|
80,672
|
||||||||||||||||||||||||
BALANCE,
September 30,
2006
|
34,412,138
|
$ |
2,753
|
6,312,839
|
$ |
505
|
$ |
928,451
|
$ | (57,962 | ) | $ |
56,278
|
$ |
930,025
|
For
the Nine Months Ended
September 30,
|
||||||||
2007
|
2006
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income / (loss)
|
$ |
15,577
|
$ | (5,808 | ) | |||
Adjustments
to reconcile net income / (loss) to net cash generated from operating
activities:
|
||||||||
Loss
from discontinued operations (Note 17)
|
-
|
4,863
|
||||||
Equity
in loss of unconsolidated affiliates, net of dividends
received
|
-
|
730
|
||||||
Gain
on sale of unconsolidated affiliate
|
-
|
(6,179 | ) | |||||
Depreciation
and amortization
|
165,889
|
111,443
|
||||||
Impairment
charge
|
-
|
748
|
||||||
Loss
on disposal of fixed asset
|
-
|
1,503
|
||||||
Stock-based
compensation (Note 14)
|
4,098
|
2,385
|
||||||
Minority
interest in income of consolidated subsidiaries
|
9,881
|
7,178
|
||||||
Change
in fair value of derivative instruments
|
(3,497 | ) |
2,757
|
|||||
Foreign
currency exchange loss, net
|
28,552
|
25,469
|
||||||
Net
change in (net of effects of acquisitions and disposals of
businesses):
|
||||||||
Accounts
receivable
|
11,616
|
15,248
|
||||||
Program
rights
|
(170,610 | ) | (110,315 | ) | ||||
Other
assets
|
(7,430 | ) | (987 | ) | ||||
Accounts
payable and accrued liabilities
|
27,319
|
8,371
|
||||||
Income
taxes payable
|
557
|
(5,663 | ) | |||||
Deferred
taxes
|
4,202
|
4,600
|
||||||
VAT
and other taxes payable
|
9,735
|
11,564
|
||||||
Net
cash generated from continuing operating
activities
|
95,889
|
67,907
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase
of property, plant and equipment
|
(46,277 | ) | (31,767 | ) | ||||
Proceeds
from disposal of property, plant and equipment
|
123
|
19
|
||||||
Investments
in subsidiaries and unconsolidated affiliates
|
(142,709 | ) | (69,470 | ) | ||||
Repayment
of loans and advances to related parties
|
400
|
400
|
||||||
Net
cash used in continuing investing activities
|
(188,463 | ) | (100,818 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from credit facilities
|
177,515
|
35,878
|
||||||
Payment
of credit facilities and capital leases
|
(182,391 | ) | (74,773 | ) | ||||
Net
proceeds from issuance of Senior Notes
|
199,400
|
-
|
||||||
Redemption
of Senior Notes
|
(169,010 | ) |
-
|
|||||
Proceeds
from exercise of stock options
|
3,477
|
3,624
|
||||||
Issuance
of shares of Class A Common Stock
|
109,853
|
168,599
|
||||||
Excess
tax benefits from share-based payment arrangements
|
512
|
-
|
||||||
Dividends
paid to minority shareholders
|
(2,910 | ) | (1,101 | ) | ||||
Net
cash received from continuing financing
activities
|
136,446
|
132,227
|
||||||
NET
CASH USED IN DISCONTINUED OPERATIONS – OPERATING
ACTIVITIES
|
(2,164 | ) | (1,690 | ) | ||||
Impact
of exchange rate fluctuations on cash
|
4,957
|
(4,782 | ) | |||||
Net
increase in cash and cash equivalents
|
46,665
|
92,844
|
||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
145,904
|
71,658
|
||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ |
192,569
|
$ |
164,502
|
Company
Name
|
Effective
Voting Interest
|
Jurisdiction
of Organization
|
Type
of Affiliate (1)
|
Nova
TV d.d. (“Nova TV (Croatia)”)
|
100.0%
|
Croatia
|
Subsidiary
|
Media
House d.o.o.
|
100.0%
|
Croatia
|
Subsidiary
|
Internet
Dnevnik d.o.o.
|
76.0%
|
Croatia
|
Subsidiary
|
|
|||
CME
Media Investments, s.r.o.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
VILJA,
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
CET
21 spol., s r.o. (“CET 21”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
ERIKA
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
MEDIA
CAPITOL a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
HARTIC,
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
Galaxie
sport s r.o. (“Galaxie Sport”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
|
|||
Media
Pro International S.A. (“MPI”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Vision SRL (“Media Vision”)
|
95.0%
|
Romania
|
Subsidiary
|
MPI
Romania B.V.
|
95.0%
|
Netherlands
|
Subsidiary
|
Pro
TV S.A. (“Pro TV”)
|
95.0%
|
Romania
|
Subsidiary
|
Sport
Radio TV Media SRL (“Sport.ro”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Pro B.V.
|
10.0%
|
Netherlands
|
Cost
investment
|
Media
Pro Management S.A.
|
8.7%
|
Romania
|
Cost
investment
|
|
|||
A.R.J.
a.s.
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
Media
Invest s.r.o. (“Media Invest”)
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
MARKIZA-SLOVAKIA
spol. s r.o. (“Markiza”)
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
GAMATEX
spol. s r.o.
|
100.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
A.D.A.M.,
a.s.
|
100.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
|
|||
MMTV
1 d.o.o.
|
100.0%
|
Slovenia
|
Subsidiary
|
Produkcija
Plus d.o.o. (“Pro Plus”)
|
100.0%
|
Slovenia
|
Subsidiary
|
POP
TV d.o.o. (“Pop TV”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Kanal
A d.o.o. (“Kanal A”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Euro
3 TV d.o.o
|
42.0%
|
Slovenia
|
Equity-Accounted
Affiliate
|
MTC
Holding d.o.o.
|
24.0%
|
Slovenia
|
Equity-Accounted
Affiliate (in liquidation)
|
Company
Name
|
Effective
Voting Interest
|
Jurisdiction
of Organization
|
Type
of Affiliate (1)
|
Ukrainian
Media Services LLC (“UMS”)
|
99.9%
|
Ukraine
|
Subsidiary
|
International
Media Services Ltd. (“IMS”)
|
60.0%
|
Bermuda
|
Subsidiary
|
Innova
Film GmbH (“Innova”)
|
60.0%
|
Germany
|
Subsidiary
|
Foreign
Enterprise “Inter-Media” (“Inter-Media”)
|
60.0%
|
Ukraine
|
Subsidiary
|
TV
Media Planet Ltd.
|
60.0%
|
Cyprus
|
Subsidiary
|
Studio
1+1 LLC (“Studio 1+1”)
|
60.0%
|
Ukraine
|
Subsidiary
|
|
|||
Ukrpromtorg
-2003 LLC (“Ukrpromtorg”)
|
65.5%
|
Ukraine
|
Subsidiary
|
Gravis
LLC
|
60.4%
|
Ukraine
|
Subsidiary
|
Delta
JSC
|
60.4%
|
Ukraine
|
Subsidiary
|
Nart
LLC
|
65.5%
|
Ukraine
|
Subsidiary
|
TV
Stimul LLC
|
49.1%
|
Ukraine
|
Equity-Accounted
Affiliate
|
Tor
LLC (“Tor”)
|
60.4%
|
Ukraine
|
Subsidiary
|
Zhysa
LLC (“Zhysa”)
|
60.4%
|
Ukraine
|
Subsidiary
|
CME
Media Enterprises B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Czech Republic II B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Romania B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Slovak Holdings B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
Central
European Media Enterprises N.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
Central
European Media Enterprises II B.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
CME
SR d.o.o.
|
100.0%
|
Serbia
|
Subsidiary
(in liquidation)
|
CME
Ukraine Holding GmbH
|
100.0%
|
Austria
|
Subsidiary
|
CME
Cyprus Holding Ltd.
|
100.0%
|
Cyprus
|
Subsidiary
|
CME
Development Corporation
|
100.0%
|
Delaware
|
Subsidiary
|
(1)
|
All
subsidiaries have been consolidated in our Consolidated Financial
Statements. All equity-accounted affiliates have been accounted for
using
the equity method. All cost investments have been accounted for using
the
cost method.
|
Jurisdiction
|
Year
|
Croatia
|
2003
|
Czech
Republic
|
2002
|
Germany
|
2000
|
Netherlands
|
2004
|
Romania
|
2002
|
Slovak
Republic
|
2001
|
Slovenia
|
2001
|
Ukraine
|
2003
|
United
States
|
2001
|
Fair
Value on
Acquisition
|
||||
Property,
plant and equipment
|
$ |
35
|
||
Intangible
assets subject to amortization (1)
|
4,784
|
|||
Intangible
assets not subject to amortization (2)
|
8,974
|
|||
Other
assets
|
2,904
|
|||
Goodwill
|
2,311
|
|||
Deferred
tax liability
|
(1,575 | ) | ||
Other
liabilities
|
(6,398 | ) | ||
Total
purchase price
|
$ |
11,035
|
Fair
Value on
Acquisition
|
||||
Intangible
assets subject to amortization (1)
|
$ |
4,517
|
||
Intangible
assets not subject to amortization (2)
|
23,597
|
|||
Goodwill
|
23,974
|
|||
Deferred
tax liability
|
(4,498 | ) | ||
Minority
interests
|
4,029
|
|||
Total
purchase price
|
$ |
51,619
|
Fair
Value on
Acquisition
|
||||
Property
Plant and Equipment
|
2,590
|
|||
Intangible
assets subject to amortization (1)
|
46,906
|
|||
Intangible
assets not subject to amortization (2)
|
2,405
|
|||
Goodwill
(3)
|
26,334
|
|||
Deferred
tax liability
|
(9,860 | ) | ||
Minority
interest
|
10,268
|
|||
Total
purchase price (4)
|
$ |
78,643
|
Balance
December
31,
2006
|
Additions
|
Foreign
currency
movement
|
Balance
September
30,
2007
|
|||||||||||||
Croatia
|
$ |
-
|
$ |
712
|
$ |
40
|
$ |
752
|
||||||||
Czech
Republic
|
823,786
|
-
|
59,398
|
883,184
|
||||||||||||
Romania
|
31,130
|
26,285
|
-
|
57,415
|
||||||||||||
Slovak
Republic
|
25,483
|
26,335
|
2,928
|
54,746
|
||||||||||||
Slovenia
|
16,458
|
-
|
1,257
|
17,715
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
4,096
|
-
|
-
|
4,096
|
||||||||||||
Ukraine
(KINO, CITI)
|
4,627
|
3,009
|
-
|
7,636
|
||||||||||||
Total
|
$ |
905,580
|
$ |
56,341
|
$ |
63,623
|
$ |
1,025,544
|
Indefinite-Lived
Broadcast
Licenses
|
Amortized
Broadcast
Licenses
|
Total
|
||||||||||
Balance,
December 31, 2006
|
$ |
26,344
|
$ |
172,386
|
$ |
198,730
|
||||||
Additions
|
23,321
|
8,974
|
32,295
|
|||||||||
Amortization
|
-
|
(12,982 | ) | (12,982 | ) | |||||||
Foreign
currency movements
|
705
|
11,476
|
12,181
|
|||||||||
Balance,
September 30, 2007
|
$ |
50,370
|
$ |
179,854
|
$ |
230,224
|
September 30,
2007
|
December 31,
2006
|
|||||||
Gross
value
|
$ |
225,336
|
$ |
201,994
|
||||
Accumulated
amortization
|
(45,482 | ) | (29,608 | ) | ||||
Total
net book value
|
$ |
179,854
|
$ |
172,386
|
Trademarks
|
Customer
Relationships
|
Other
|
Total
|
|||||||||||||
Balance,
December 31, 2006
|
$ |
44,026
|
$ |
27,213
|
$ |
703
|
$ |
71,942
|
||||||||
Additions
|
12,192
|
46,554
|
425
|
59,171
|
||||||||||||
Amortization
|
(186 | ) | (3,363 | ) | (391 | ) | (3,940 | ) | ||||||||
Foreign
currency movements
|
2,010
|
1,938
|
49
|
3,997
|
||||||||||||
Balance,
September 30, 2007
|
$ |
58,042
|
$ |
72,342
|
$ |
786
|
$ |
131,170
|
September 30,
2007
|
December 31,
2006
|
|||||||
Gross
value
|
$ |
140,429
|
$ |
76,695
|
||||
Accumulated
amortization
|
(9,259 | ) | (4,753 | ) | ||||
Total
net book value
|
$ |
131,170
|
$ |
71,942
|
Carrying
Value
|
Fair
Value
|
|||||||||||||||
September 30,
2007
|
December 31,
2006
|
September 30,
2007
|
December 31,
2006
|
|||||||||||||
EUR
245.0 million 8.25% Senior Notes
|
$ |
347,370
|
$ |
322,666
|
$ |
363,002
|
$ |
353,722
|
||||||||
EUR
125.0 million Floating Rate Senior Notes
|
-
|
164,625
|
-
|
170,181
|
||||||||||||
EUR
150.0 million Floating Rate Senior Notes
|
212,675
|
-
|
202,042
|
-
|
||||||||||||
$ |
560,045
|
$ |
487,291
|
$ |
565,044
|
$ |
523,903
|
From:
|
Fixed
Rate Notes
Redemption
Price
|
May
15, 2009 to May 14, 2010
|
104.125%
|
May
15, 2010 to May 14, 2011
|
102.063%
|
May
15, 2011 and thereafter
|
100.000%
|
From:
|
2014
Floating Rate Notes
Redemption
Price
|
November
15, 2007 to May 14, 2008
|
102.000%
|
May
15, 2008 to May 14, 2009
|
101.000%
|
May
15, 2009 and thereafter
|
100.000%
|
September 30,
2007
|
December 31,
2006
|
|||||||
Croatia
|
$ |
417
|
$ |
4,183
|
||||
Slovenia
|
780
|
724
|
||||||
Ukraine
(STUDIO 1+1)
|
49
|
47
|
||||||
Total
restricted cash
|
$ |
1,246
|
$ |
4,954
|
September 30,
2007
|
December 31,
2006
|
|||||||
Trading:
|
||||||||
Third-party
customers
|
$ |
158,020
|
$ |
156,701
|
||||
Less:
allowance for bad debts and credit notes
|
(13,860 | ) | (11,472 | ) | ||||
Related
parties
|
5,522
|
7,655
|
||||||
Less:
allowance for bad debts and credit notes
|
(266 | ) | (798 | ) | ||||
Total
trading
|
$ |
149,416
|
$ |
152,086
|
||||
Other:
|
||||||||
Third-party
customers
|
$ |
240
|
$ |
359
|
||||
Less:
allowance for bad debts and credit notes
|
(116 | ) | (103 | ) | ||||
Related
parties
|
61
|
454
|
||||||
Less:
allowance for bad debts and credit notes
|
(61 | ) | (291 | ) | ||||
Total
other
|
$ |
124
|
$ |
419
|
||||
Total
accounts receivable
|
$ |
149,540
|
$ |
152,505
|
September 30,
2007
|
December 31,
2006
|
|||||||
Current:
|
||||||||
Prepaid
programming
|
$ |
40,832
|
$ |
23,072
|
||||
Other
prepaid expenses
|
14,737
|
13,177
|
||||||
Deferred
tax
|
1,966
|
2,124
|
||||||
VAT
recoverable
|
3,600
|
2,562
|
||||||
Loan
to related party
|
600
|
600
|
||||||
Capitalized
debt costs
|
3,077
|
2,908
|
||||||
Other
|
5,476
|
3,112
|
||||||
Total
other current assets
|
$ |
70,288
|
$ |
47,555
|
||||
Non-current:
|
||||||||
Capitalized
debt costs
|
$ |
11,023
|
$ |
11,264
|
||||
Loan
to related party
|
1,334
|
1,603
|
||||||
Deferred
tax
|
4,557
|
3,443
|
||||||
Other
|
2,506
|
1,165
|
||||||
Total
other non-current assets
|
$ |
19,420
|
$ |
17,475
|
September 30,
2007
|
December 31,
2006
|
|||||||
Land
and buildings
|
$ |
74,753
|
$ |
56,212
|
||||
Station
machinery, fixtures and equipment
|
140,644
|
115,238
|
||||||
Other
equipment
|
28,580
|
21,980
|
||||||
Software
licenses
|
18,581
|
15,495
|
||||||
Construction
in progress
|
19,487
|
4,070
|
||||||
Total
cost
|
282,045
|
212,995
|
||||||
Less: Accumulated
depreciation
|
(127,049 | ) | (97,190 | ) | ||||
Total
net book value
|
$ |
154,996
|
$ |
115,805
|
||||
Assets
held under capital leases (included above)
|
||||||||
Land
and buildings
|
$ |
5,965
|
$ |
5,541
|
||||
Station
machinery, fixtures and equipment
|
1,344
|
2,330
|
||||||
Total
cost
|
7,309
|
7,871
|
||||||
Less:
Accumulated depreciation
|
(1,698 | ) | (1,877 | ) | ||||
Net
book value
|
$ |
5,611
|
$ |
5,994
|
September 30,
2007
|
December 31,
2006
|
|||||||
Accounts
payable
|
$ |
24,155
|
$ |
47,447
|
||||
Programming
liabilities
|
40,111
|
32,316
|
||||||
Accrued
interest payable
|
15,902
|
5,375
|
||||||
Deferred
income
|
26,368
|
3,212
|
||||||
Accrued
staff costs
|
21,950
|
12,947
|
||||||
Accrued
production costs
|
5,385
|
7,435
|
||||||
Accrued
legal costs
|
15,769
|
3,619
|
||||||
Accrued
rent costs
|
1,184
|
1,163
|
||||||
Authors’
rights
|
4,767
|
943
|
||||||
Onerous
contracts
|
1,804
|
-
|
||||||
Other
accrued liabilities
|
12,229
|
5,260
|
||||||
Total
accounts payable and accrued liabilities
|
$ |
169,624
|
$ |
119,717
|
September 30,
2007
|
December 31,
2006
|
||||||||
Credit
facilities:
|
|||||||||
Corporate
|
(a)
|
$ |
-
|
$ |
-
|
||||
Croatia
|
(b)
|
-
|
847
|
||||||
Czech
Republic
|
(c)
– (e)
|
12,839
|
11,975
|
||||||
Romania
|
(f)
|
-
|
-
|
||||||
Slovenia
|
(g)
|
-
|
-
|
||||||
Ukraine
(KINO, CITI)
|
(h)
|
1,700
|
1,703
|
||||||
Total
credit facilities
|
$ |
14,539
|
$ |
14,525
|
|||||
Capital
leases:
|
|||||||||
Croatia
operations, net of interest
|
$ |
-
|
$ |
19
|
|||||
Romania
operations, net of interest
|
300
|
495
|
|||||||
Slovak
Republic operations, net of interest
|
96
|
154
|
|||||||
Slovenia
operations, net of interest
|
4,322
|
4,223
|
|||||||
Total
capital leases
|
$ |
4,718
|
$ |
4,891
|
|||||
Total
credit facilities and capital leases
|
$ |
19,257
|
$ |
19,416
|
|||||
Less
current maturities
|
(13,371 | ) | (13,057 | ) | |||||
Total
non-current maturities
|
$ |
5,886
|
$ |
6,359
|
2007
|
$ |
12,839
|
||
2008
|
-
|
|||
2009
|
1,700
|
|||
2010
|
-
|
|||
2011
|
-
|
|||
2012
and thereafter
|
560,045
|
|||
Total
|
$ |
574,584
|
2007
|
$ |
679
|
||
2008
|
1,093
|
|||
2009
|
679
|
|||
2010
|
471
|
|||
2011
|
949
|
|||
2012
and thereafter
|
2,967
|
|||
$ |
6,838
|
|||
Less:
amount representing interest
|
(2,120 | ) | ||
Present
value of net minimum lease payments
|
$ |
4,718
|
For
the Three Months
Ended
September 30,
|
For
the Nine Months
Ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Stock-based
compensation charged under SFAS 123(R)
|
$ |
1,494
|
$ |
967
|
$ |
4,098
|
$ |
2,385
|
Date
of Option Grant
|
Number
of Options
Granted
|
Risk-free
interest rate
(%)
|
Expected
term
(years)
|
Expected
volatility
(%)
|
Dividend
yield
(%)
|
Weighted-average
fair value
($/share)
|
||||||||||||||||||
April
2, 2007
|
12,500
|
4.57 | % |
6.25
|
41.29 | % | 0 | % | $ |
42.25
|
||||||||||||||
June
5, 2007 (Class A)
|
35,000
|
4.92 | % |
3.00
|
32.38 | % | 0 | % | $ |
25.19
|
||||||||||||||
June
5, 2007 (Class B)
|
5,000
|
4.92 | % |
3.00
|
32.38 | % | 0 | % | $ |
23.35
|
Shares
|
Weighted
Average Exercise Price per Share
|
Weighted
Average Remaining Contractual Term (years)
|
Aggregate
Intrinsic Value
|
|||||||||||||
Outstanding
at December 31, 2006
|
1,288,575
|
$ |
35.51
|
7.45
|
$ |
44,443
|
||||||||||
Granted
|
52,500
|
89.77
|
||||||||||||||
Exercised
|
(274,583 | ) |
12.66
|
|||||||||||||
Forfeited
|
(21,625 | ) |
50.85
|
|||||||||||||
Expired
|
(20,000 | ) |
23.00
|
|||||||||||||
Outstanding
at September 30, 2007
|
1,024,867
|
$ |
44.33
|
7.06
|
$ |
48,569
|
||||||||||
Vested
or expected to vest at September 30, 2007
|
954,951
|
43.63
|
9.38
|
45,914
|
||||||||||||
Exercisable
at September 30, 2007
|
440,325
|
$ |
24.68
|
6.56
|
$ |
27,102
|
For
the Three Months
Ended
September 30,
|
For
the Nine Months
Ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
income / (loss) available for common shareholders
|
$ | (18,763 | ) | $ |
3,934
|
$ |
15,577
|
$ | (5,808 | ) | ||||||
Weighted
average outstanding shares of common stock
(000’s)
|
41,489
|
40,651
|
41,077
|
39,792
|
||||||||||||
Dilutive
effect of employee stock options (000’s)
|
-
|
537
|
476
|
-
|
||||||||||||
Common
stock and common stock equivalents (000’s)
|
41,489
|
41,188
|
41,553
|
39,792
|
||||||||||||
Net
income / (loss) per share:
|
||||||||||||||||
Basic
|
$ | (0.45 | ) | $ |
0.09
|
$ |
0.38
|
$ | (0.14 | ) | ||||||
Diluted
|
$ | (0.45 | ) | $ |
0.09
|
$ |
0.37
|
$ | (0.14 | ) |
·
|
expenses
presented as corporate operating costs in our consolidated statements
of
operations and comprehensive
income;
|
·
|
stock-based
compensation charges;
|
·
|
foreign
currency exchange gains and losses;
|
·
|
changes
in fair value of derivatives; and
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments on assets or
investments).
|
For
the Three Months Ended September 30,
|
||||||||||||||||
Segment
Net Revenues (1)
|
Segment
EBITDA
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Country:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
7,055
|
$ |
4,288
|
$ | (2,981 | ) | $ | (4,558 | ) | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
51,140
|
40,141
|
25,989
|
17,234
|
||||||||||||
Romania
(2)
|
44,412
|
29,298
|
19,486
|
11,719
|
||||||||||||
Slovak
Republic (MARKIZA TV)
|
20,286
|
13,895
|
5,544
|
2,408
|
||||||||||||
Slovenia
(POP TV, KANAL A)
|
11,545
|
9,101
|
854
|
1,225
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
39,582
|
15,578
|
16,599
|
(838 | ) | |||||||||||
Ukraine
(KINO, CITI)
|
816
|
181
|
(1,339 | ) | (1,182 | ) | ||||||||||
Total
segment data
|
$ |
174,836
|
$ |
112,482
|
$ |
64,152
|
$ |
26,008
|
Consolidated
net revenues / (loss) / income before provision for income taxes,
minority
interest and discontinued operations
|
$ |
174,836
|
$ |
112,482
|
$ | (14,121 | ) | $ |
1,784
|
|||||||
Corporate
operating costs
|
-
|
-
|
13,839
|
8,342
|
||||||||||||
Depreciation
of station property, plant and equipment
|
-
|
-
|
8,768
|
6,080
|
||||||||||||
Amortization
of broadcast licenses and other intangibles
|
-
|
-
|
6,595
|
5,015
|
||||||||||||
Interest
income
|
-
|
-
|
(1,180 | ) | (1,554 | ) | ||||||||||
Interest
expense
|
-
|
-
|
11,883
|
11,066
|
||||||||||||
Foreign
currency exchange loss/(gain), net
|
-
|
-
|
23,300
|
(6,018 | ) | |||||||||||
Change
in fair value of derivatives
|
-
|
-
|
8,555
|
881
|
||||||||||||
Other
income
|
-
|
-
|
6,513
|
412
|
||||||||||||
Total
segment data
|
$ |
174,836
|
$ |
112,482
|
$ |
64,152
|
$ |
26,008
|
For
the Nine Months Ended September 30,
|
||||||||||||||||
Segment
Net Revenues (1)
|
Segment
EBITDA
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Country:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
24,701
|
$ |
13,745
|
$ | (9,800 | ) | $ | (11,639 | ) | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
183,203
|
137,002
|
99,251
|
59,569
|
||||||||||||
Romania
(2)
|
135,978
|
96,938
|
57,152
|
39,756
|
||||||||||||
Slovak
Republic (MARKIZA TV)
|
68,615
|
45,147
|
23,012
|
9,258
|
||||||||||||
Slovenia
(POP TV, KANAL A)
|
44,309
|
34,883
|
12,243
|
10,688
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
80,358
|
62,117
|
14,794
|
16,183
|
||||||||||||
Ukraine
(KINO, CITI) (3)
|
1,868
|
754
|
(5,511 | ) | (1,736 | ) | ||||||||||
Total
segment data
|
$ |
539,032
|
$ |
390,586
|
$ |
191,141
|
$ |
122,079
|
Consolidated
net revenues / income before provision for income taxes, minority
interest, equity in income of unconsolidated affiliates and discontinued
operations
|
$ |
539,032
|
$ |
388,825
|
$ |
44,067
|
$ |
9,595
|
||||||||
Corporate
operating costs
|
-
|
-
|
30,087
|
24,019
|
||||||||||||
Depreciation
of station property, plant and equipment
|
-
|
-
|
23,347
|
17,841
|
||||||||||||
Amortization
of broadcast licenses and other intangibles
|
-
|
-
|
16,922
|
13,967
|
||||||||||||
Impairment
charge
|
-
|
-
|
-
|
748
|
||||||||||||
Unconsolidated
equity affiliates (4)
|
-
|
1,761
|
-
|
(1,283 | ) | |||||||||||
Interest
income
|
-
|
-
|
(4,326 | ) | (4,748 | ) | ||||||||||
Interest
expense
|
-
|
-
|
42,717
|
32,921
|
||||||||||||
Foreign
currency exchange loss, net
|
-
|
-
|
28,552
|
25,469
|
||||||||||||
Change
in fair value of derivatives
|
-
|
-
|
(3,497 | ) |
2,757
|
|||||||||||
Other
expense
|
-
|
-
|
13,272
|
793
|
||||||||||||
Total
segment data
|
$ |
539,032
|
$ |
390,586
|
$ |
191,141
|
$ |
122,079
|
For
the Three Months
Ended
September 30,
|
For
the Nine Months
Ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Depreciation
of station property, plant and equipment and amortization of broadcast
licenses and other intangibles:
|
||||||||||||||||
Croatia
|
$ |
918
|
$ |
793
|
$ |
2,650
|
$ |
2,224
|
||||||||
Czech
Republic
|
7,187
|
5,957
|
20,337
|
17,365
|
||||||||||||
Romania
|
2,703
|
1,659
|
6,630
|
4,023
|
||||||||||||
Slovak
Republic
|
2,350
|
791
|
4,484
|
3,139
|
||||||||||||
Slovenia
|
1,212
|
952
|
3,308
|
2,492
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
792
|
821
|
2,336
|
2,323
|
||||||||||||
Ukraine
(KINO, CITI)
|
201
|
122
|
524
|
419
|
||||||||||||
Total
|
$ |
15,363
|
$ |
11,095
|
$ |
40,269
|
$ |
31,985
|
Unconsolidated
equity affiliates
|
-
|
-
|
-
|
(177 | ) | |||||||||||
Total
consolidated depreciation and amortization
|
$ |
15,363
|
$ |
11,095
|
$ |
40,269
|
$ |
31,808
|
||||||||
Represented
as follows:
|
||||||||||||||||
Depreciation
of station property, plant & equipment
|
8,768
|
6,080
|
23,347
|
17,841
|
||||||||||||
Amortization
of broadcast licenses and other intangibles
|
6,595
|
5,015
|
16,922
|
13,967
|
Total
assets (1):
|
September 30,
2007
|
December 31,
2006
|
||||||
Croatia
|
$ |
35,640
|
$ |
30,394
|
||||
Czech
Republic
|
1,290,692
|
1,200,894
|
||||||
Romania
|
301,132
|
206,850
|
||||||
Slovak
Republic
|
190,542
|
86,872
|
||||||
Slovenia
|
79,168
|
67,919
|
||||||
Ukraine
(STUDIO 1+1)
|
89,442
|
75,020
|
||||||
Ukraine
(KINO, CITI)
|
18,481
|
13,293
|
||||||
Total
segment assets
|
$ |
2,005,097
|
$ |
1,681,242
|
||||
Reconciliation
to condensed consolidated balance sheets:
|
||||||||
Corporate
|
162,440
|
137,758
|
||||||
Total
assets
|
$ |
2,167,537
|
$ |
1,819,000
|
Long-lived
assets (1):
|
September 30,
2007
|
December 31,
2006
|
||||||
Croatia
|
$ |
9,215
|
$ |
6,804
|
||||
Czech
Republic
|
51,440
|
28,002
|
||||||
Romania
|
38,493
|
32,312
|
||||||
Slovak
Republic
|
24,699
|
19,498
|
||||||
Slovenia
|
17,788
|
15,595
|
||||||
Ukraine
(STUDIO 1+1)
|
7,402
|
7,965
|
||||||
Ukraine
(KINO, CITI)
|
4,459
|
3,674
|
||||||
Total
long-lived assets
|
$ |
153,496
|
$ |
113,850
|
||||
Reconciliation
to condensed consolidated balance sheets:
|
||||||||
Corporate
|
1,500
|
1,955
|
||||||
Total
long-lived assets
|
$ |
154,996
|
$ |
115,805
|
For
the Three Months
Ended
September 30,
|
For
the Nine Months
Ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Tax
on disposal of discontinued operations
|
-
|
(2,333 | ) |
-
|
(4,863 | ) | ||||||||||
Net
loss from discontinued operations
|
$ |
-
|
$ | (2,333 | ) | $ |
-
|
$ | (4,863 | ) |
September 30,
2007
|
||||
Croatia
|
$ |
12,245
|
||
Czech
Republic
|
46,697
|
|||
Romania
|
36,489
|
|||
Slovak
Republic
|
10,497
|
|||
Slovenia
|
4,221
|
|||
Ukraine
(STUDIO 1+1)
|
13,077
|
|||
Ukraine
(KINO, CITI)
|
192
|
|||
Total
|
$ |
123,418
|
September 30,
2007
|
||||
2007
|
$ |
593
|
||
2008
|
2,088
|
|||
2009
|
1,159
|
|||
2010
|
925
|
|||
2011
|
394
|
|||
2012
and thereafter
|
-
|
|||
Total
|
$ |
5,159
|
Croatia
|
The
license of NOVA TV (Croatia) expires in April
2010.
|
Czech Republic
|
The
license of TV NOVA (Czech Republic) expires in January 2017. The
GALAXIE SPORT license expires in March
2014.
|
Romania
|
Licenses
expire on dates ranging from November 2007 to March
2016.
|
Slovak Republic
|
The
license of MARKIZA TV in the Slovak Republic expires in September
2019.
|
Slovenia
|
The
licenses of POP TV and KANAL A expire in August
2012.
|
Ukraine
|
The
15-hour prime time and off prime time license of STUDIO 1+1 expires
in
December 2016. The license to broadcast for the remaining nine
hours in
off prime expires in August 2014. Licenses used for the KINO
and CITI channels expire on dates ranging from June 2008 to July
2016.
|
I.
|
Forward-looking
Statements
|
II.
|
Executive
Summary
|
III.
|
Analysis
of Segment Results
|
IV.
|
Analysis
of the Results of Consolidated
Operations
|
V.
|
Liquidity
and Capital Resources
|
VI.
|
Critical
Accounting Policies and
Estimates
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Net
revenues
|
$ |
174,836
|
$ |
112,482
|
$ |
62,354
|
||||||
Operating
income
|
34,950
|
6,571
|
28,379
|
|||||||||
Net
(loss) / income from continuing operations
|
(18,763 | ) |
6,267
|
(25,030 | ) | |||||||
Net
(loss) / income
|
$ | (18,763 | ) | $ |
3,934
|
$ | (22,697 | ) | ||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Net
revenues
|
$ |
539,032
|
$ |
388,825
|
$ |
150,207
|
||||||
Operating
income
|
120,785
|
66,787
|
53,998
|
|||||||||
Net
income / (loss) from continuing operations
|
15,577
|
(945 | ) |
16,522
|
||||||||
Net
income / (loss)
|
$ |
15,577
|
$ | (5,808 | ) | $ |
21,385
|
|
·
|
In
the three months ended September 30, 2007, we reported growth in
Segment
Net Revenues of 55% and Segment EBITDA of 147% compared to the three
months ended September 30, 2006, delivering a Segment EBITDA margin
of 37%
compared to the 23% margin reported in the three months ended September
30, 2006 (Segment EBITDA is defined and reconciled to our consolidated
results in Part I, Item 1, Note
16).
|
|
·
|
Each
of our stations reported revenue growth in excess of 25% compared
to the
three months ended September 30, 2006, with particularly strong growth
reported in Ukraine as a result of the level of political advertising
ahead of the parliamentary elections on September 30,
2007.
|
|
·
|
On
July 13, 2007, we acquired an additional 20.0% interest in Markiza
for
aggregate consideration of SKK 1.9 billion (approximately US$ 78.5
million) and now own 100.0% of our Slovak Republic
operations.
|
|
·
|
On
August 22, 2007, we entered into a new facility with EBRD, ING and
CS in
the amount of EUR 50.0 million, while at the same time reducing the
interest payable on our existing EUR 100.0 facility to EURIBOR
+1.625% from the previous EURIBOR +
2.75%.
|
|
·
|
On
August 30, 2007 we issued 1,275,227 shares of our Class A Common
Stock to
Igor Kolomoisky for cash consideration of US$ 110.0
million. In connection with this investment,
Mr. Kolomoisky was appointed to our Board of
Directors.
|
|
·
|
On
August 30, 2007 we completed the registration of a 42% direct ownership
interest in Studio 1+1 via a Ukrainian subsidiary company,
thereby securing control over the Studio 1+1 broadcasting
licenses.
|
|
·
|
On
September 10, 2007, Standard & Poor’s upgraded our corporate credit
rating from BB- to BB.
|
|
·
|
On
October 17, 2007, we appointed Adrian Sarbu as our Chief Operating
Officer.
|
·
|
supporting
the growth of television advertising spending in our markets through
our
existing operations and through the launch or acquisition of additional
channels to expand our advertising inventory and target niche
audiences;
|
·
|
pursuing
sub-regional efficiencies, especially in the area of local programming
between Slovenia and Croatia and between the Czech and Slovak
Republics;
|
·
|
leveraging
our existing brands and assets to develop new revenue opportunities,
including in the creation and distribution of programming and in
the new
media sectors; and
|
·
|
continuing
to expand our footprint into additional Central and Eastern European
markets when financially prudent opportunities
arise.
|
·
|
additional
investment in Russian series and local programming by STUDIO 1+1,
which
have driven ratings historically, and in our other Ukraine channels
KINO
and CITI, which were launched in
2006;
|
·
|
further
development of our non-broadcast activities, particularly in new
media;
|
·
|
acquisition
of additional shares in our operations in Ukraine if the opportunity
arises; and
|
·
|
continuing
to invest in our Croatia
operations.
|
·
|
expenses
presented as corporate operating costs in our condensed consolidated
statement of operations and comprehensive
income;
|
·
|
stock-based
compensation charges;
|
·
|
foreign
currency exchange gains and losses;
|
·
|
change
in fair value of derivatives; and
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments of assets or
investments).
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||||||
2007
|
(1 | ) |
2006
|
(1 | ) | |||||||||||
Segment
Net Revenue
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
7,055
|
4 | % | $ |
4,288
|
4 | % | ||||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
51,140
|
29 | % |
40,141
|
36 | % | ||||||||||
Romania
(2)
|
44,412
|
25 | % |
29,298
|
26 | % | ||||||||||
Slovak
Republic (MARKIZA TV)
|
20,286
|
12 | % |
13,895
|
12 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
11,545
|
7 | % |
9,101
|
8 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
39,582
|
23 | % |
15,578
|
14 | % | ||||||||||
Ukraine
(KINO, CITI)
|
816
|
-
|
181
|
-
|
||||||||||||
Total
Segment Net Revenues
|
$ |
174,836
|
100 | % | $ |
112,482
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
173,991
|
100 | % | $ |
111,931
|
100 | % | ||||||||
Non-broadcast
operations
|
845
|
-
|
551
|
-
|
||||||||||||
Total
Segment Revenues
|
$ |
174,836
|
100 | % | $ |
112,482
|
100 | % | ||||||||
Segment
EBITDA
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ | (2,981 | ) | (5 | )% | $ | (4,558 | ) | (17 | )% | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
25,989
|
41 | % |
17,234
|
66 | % | ||||||||||
Romania
(2)
|
19,486
|
30 | % |
11,719
|
45 | % | ||||||||||
Slovak
Republic (MARKIZA TV)
|
5,544
|
9 | % |
2,408
|
9 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
854
|
1 | % |
1,225
|
5 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
16,599
|
26 | % | (838 | ) | (3 | )% | |||||||||
Ukraine
(KINO, CITI)
|
(1,339 | ) | (2 | )% | (1,182 | ) | (5 | )% | ||||||||
Total
Segment EBITDA
|
$ |
64,152
|
100 | % | $ |
26,008
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
65,805
|
103 | % | $ |
26,119
|
100 | % | ||||||||
Non-broadcast
operations
|
(1,653 | ) | (3 | )% | (111 | ) |
-
|
|||||||||
Total
Segment EBITDA
|
$ |
64,152
|
100 | % | $ |
26,008
|
100 | % | ||||||||
Segment
EBITDA Margin (3)
|
37 | % | 23 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||||||
2007
|
(1 | ) |
2006
|
(1 | ) | |||||||||||
Segment
Net Revenue
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
24,701
|
5 | % | $ |
13,745
|
3 | % | ||||||||
Czech
Republic (TV NOVA)
|
183,203
|
34 | % |
137,002
|
35 | % | ||||||||||
Romania
(2)
|
135,978
|
25 | % |
96,938
|
25 | % | ||||||||||
Slovak
Republic (MARKIZA TV) (3)
|
68,615
|
13 | % |
45,147
|
12 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
44,309
|
8 | % |
34,883
|
9 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
80,358
|
15 | % |
62,117
|
16 | % | ||||||||||
Ukraine
(KINO, CITI) (4)
|
1,868
|
-
|
754
|
-
|
||||||||||||
Total
Segment Net Revenues
|
$ |
539,032
|
100 | % | $ |
390,586
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
536,964
|
100 | % | $ |
388,906
|
100 | % | ||||||||
Non-broadcast
operations
|
2,068
|
-
|
1,680
|
-
|
||||||||||||
Total
Segment Revenues
|
$ |
539,032
|
100 | % | $ |
390,586
|
100 | % | ||||||||
Segment
EBITDA
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ | (9,800 | ) | (5 | )% | $ | (11,639 | ) | (10 | )% | ||||||
Czech
Republic (TV NOVA)
|
99,251
|
52 | % |
59,569
|
49 | % | ||||||||||
Romania
(2)
|
57,152
|
30 | % |
39,756
|
32 | % | ||||||||||
Slovak
Republic (MARKIZA TV) (3)
|
23,012
|
12 | % |
9,258
|
8 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
12,243
|
6 | % |
10,688
|
9 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
14,794
|
8 | % |
16,183
|
13 | % | ||||||||||
Ukraine
(KINO, CITI) (4)
|
(5,511 | ) | (3 | )% | (1,736 | ) | (1 | )% | ||||||||
Total
Segment EBITDA
|
$ |
191,141
|
100 | % | $ |
122,079
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
193,538
|
101 | % | $ |
122,035
|
100 | % | ||||||||
Non-broadcast
operations
|
(2,397 | ) | (1 | )% |
44
|
-
|
||||||||||
Total
Segment EBITDA
|
$ |
191,141
|
100 | % | $ |
122,079
|
100 | % | ||||||||
Segment
EBITDA Margin (5)
|
35 | % | 31 | % |
CROATIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
5,308
|
$ |
3,022
|
$ |
2,286
|
||||||
Non-spot
revenues
|
1,747
|
1,266
|
481
|
|||||||||
Segment
Net Revenues
|
$ |
7,055
|
$ |
4,288
|
$ |
2,767
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
6,976
|
$ |
4,284
|
$ |
2,692
|
||||||
Non-broadcast
operations
|
79
|
4
|
75
|
|||||||||
Segment
Net Revenues
|
$ |
7,055
|
$ |
4,288
|
$ |
2,767
|
||||||
Segment
EBITDA
|
$ | (2,981 | ) | $ | (4,558 | ) | $ |
1,577
|
||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (3,002 | ) | $ | (4,512 | ) | $ |
1,510
|
||||
Non-broadcast
operations
|
21
|
(46 | ) |
67
|
||||||||
Segment
EBITDA
|
$ | (2,981 | ) | $ | (4,558 | ) | $ |
1,577
|
||||
Segment
EBITDA Margin
|
(42 | )% | (106 | )% | 64 | % |
·
|
Segment
Net Revenues for the three months ended September 30, 2007
increased by US$ 2.8 million, or 65%, compared to the three months
ended
September 30, 2006. In local currency, Segment Net Revenues
increased by 52%. Spot revenues increased by US$ 2.3 million,
or 76%, as a result of significant increases in the volume of GRPs
sold
and the average revenue per rating point sold. Non-spot
revenues increased by US$ 0.5 million, or 38%, as a result of increased
levels of sponsorship.
|
·
|
Segment
EBITDA for the three months ended September 30, 2007 was a loss
of US$ 3.0 million compared to a loss of US$ 4.6 million in the three
months ended September 30, 2006, an improvement of 35%. In
local currency, Segment EBITDA improved by
40%.
|
CROATIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
18,812
|
$ |
10,773
|
$ |
8,039
|
||||||
Non-spot
revenues
|
5,889
|
2,972
|
2,917
|
|||||||||
Segment
Net Revenues
|
$ |
24,701
|
$ |
13,745
|
$ |
10,956
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
24,592
|
$ |
13,741
|
$ |
10,851
|
||||||
Non-broadcast
operations
|
109
|
4
|
105
|
|||||||||
Segment
Net Revenues
|
$ |
24,701
|
$ |
13,745
|
$ |
10,956
|
||||||
Segment
EBITDA
|
$ | (9,800 | ) | $ | (11,639 | ) | $ |
1,839
|
||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (9,769 | ) | $ | (11,593 | ) | $ |
1,824
|
||||
Non-broadcast
operations
|
(31 | ) | (46 | ) |
15
|
|||||||
Segment
EBITDA
|
$ | (9,800 | ) | $ | (11,639 | ) | $ |
1,839
|
||||
Segment
EBITDA Margin
|
(40 | )% | (85 | )% | 45 | % |
·
|
Segment
Net Revenues for the nine months ended September 30, 2007
increased by US$ 11.0 million, or 80%, compared to the nine months
ended
September 30, 2006. In local currency, Segment Net Revenues
increased by 67%. Spot revenues increased by US$ 8.0 million,
or 75%, as a result of a significant increase in the volume of GRPs
sold,
augmented by increased prices. Non-spot revenues increased by
US$ 2.9 million, or 98%, as a result of increased levels of
sponsorship.
|
·
|
Segment
EBITDA for the nine months ended September 30, 2007 was a loss
of
US$ 9.8 million compared to a loss of US$ 11.6 million in the nine
months
ended September 30, 2006, an improvement of 16%. In local
currency, Segment EBITDA improved by
22%.
|
CZECH
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
45,541
|
$ |
35,757
|
$ |
9,784
|
||||||
Non-spot
revenues
|
5,599
|
4,384
|
1,215
|
|||||||||
Segment
Net Revenues
|
$ |
51,140
|
$ |
40,141
|
$ |
10,999
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
51,032
|
$ |
39,957
|
$ |
11,075
|
||||||
Non-broadcast
operations
|
108
|
184
|
(76 | ) | ||||||||
Segment
Net Revenues
|
$ |
51,140
|
$ |
40,141
|
$ |
10,999
|
||||||
Segment
EBITDA
|
$ |
25,989
|
$ |
17,234
|
$ |
8,755
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
26,258
|
$ |
17,202
|
$ |
9,056
|
||||||
Non-broadcast
operations
|
(269 | ) |
32
|
(301 | ) | |||||||
Segment
EBITDA
|
$ |
25,989
|
$ |
17,234
|
$ |
8,755
|
||||||
Segment
EBITDA Margin
|
51 | % | 43 | % | 8 | % |
·
|
Segment
Net Revenues for the three months ended September 30, 2007
increased by US$ 11.0 million, or 27%, compared to the three months
ended
September 30, 2006. In local currency, Segment Net Revenues
increased by 16%. Spot revenues increased by US$ 9.8 million,
or 27%, primarily due to increased average revenue per rating point
sold,
as well as small increase in the volume of GRPs sold. Non-spot revenue
increased by US$ 1.2 million, or 28%, primarily due to increased
sponsorship.
|
·
|
Segment
EBITDA for the three months ended September 30, 2007 increased
by
US$ 8.8 million, or 51%, compared to the three months ended September
30,
2006, resulting in an EBITDA margin of 51% compared to 43% in the
three
months ended September 30, 2006. In local currency, Segment
EBITDA increased by 36%. Costs charged in arriving at Segment
EBITDA for the three months ended September 30, 2007 increased by
US$ 2.2
million, or 10%, compared to the three months ended September 30,
2006. Cost of programming increased by US$ 2.6 million, or 23%,
due to increased investment in both local productions and syndicated
programming, particularly in July and August, in order to maintain
market
share. Other operating costs decreased by US$ 0.7 million, or
12%, due to lower salary and wage costs, partially offset by higher
transmission costs as a result of increased transmitter coverage
and also
higher music rights costs. Selling, general and administrative
expenses increased by US$ 0.3 million, or 5%, primarily due to increased
office running costs and marketing and research costs, partially
offset by
a reduction in consultancy fees.
|
CZECH
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
166,253
|
$ |
118,590
|
$ |
47,663
|
||||||
Non-spot
revenues
|
16,950
|
18,412
|
(1,462 | ) | ||||||||
Segment
Net Revenues
|
$ |
183,203
|
$ |
137,002
|
$ |
46,201
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
183,001
|
$ |
136,451
|
$ |
46,550
|
||||||
Non-broadcast
operations
|
202
|
551
|
(349 | ) | ||||||||
Segment
Net Revenues
|
$ |
183,203
|
$ |
137,002
|
$ |
46,201
|
||||||
Segment
EBITDA
|
$ |
99,251
|
$ |
59,569
|
$ |
39,682
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
100,017
|
$ |
59,521
|
$ |
40,496
|
||||||
Non-broadcast
operations
|
(766 | ) |
48
|
(814 | ) | |||||||
Segment
EBITDA
|
$ |
99,251
|
$ |
59,569
|
$ |
39,682
|
||||||
Segment
EBITDA Margin
|
54 | % | 43 | % | 11 | % |
·
|
Segment
Net Revenues for the nine months ended September 30, 2007
increased by US$ 46.2 million, or 34%, compared to the nine months
ended
September 30, 2006. In local currency, Segment Net Revenues
increased by 22%. Spot revenues increased by US$ 47.7 million,
or 40%, primarily due to an increase in the volume of GRPs sold,
particularly in the first half as well as increased average revenue
per
rating point sold. Non-spot revenue decreased by US$ 1.5 million,
or 8%,
primarily due to a reduction in the number of shows generating voting
revenue in the nine months ended September 30, 2007 compared to those
programs broadcast in the nine months ended September 30, 2006 and
a
reduction in votes in the shows that were broadcast, partially offset
by
increased sponsorship.
|
·
|
Segment
EBITDA for the nine months ended September 30, 2007 increased by
US$ 39.7 million, or 67%, compared to the nine months ended September
30,
2006, resulting in an EBITDA margin of 54% compared to 43% in the
nine
months ended September 30, 2006. In local currency, Segment
EBITDA increased by 52%. Costs charged in arriving at Segment
EBITDA for the nine months ended September 30, 2007 increased by
US$ 6.5
million, or 8%, compared to the nine months ended September 30,
2006. Cost of programming increased by US$ 2.7 million, or 6%,
due to a combination of the impact of price inflation on foreign
programming and increased investment in local
productions. Other operating costs increased by US$ 3.6
million, or 19%, primarily due to increased accruals for
performance-related bonus payments, as well as higher transmission
costs
as a result of increased transmitter coverage and also higher music
rights
costs. Selling, general and administrative expenses increased
by US$ 0.2 million, or 1%, due to increased office running costs
and
marketing and research costs, partially offset by a reduction in
consultancy fees.
|
ROMANIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
41,146
|
$ |
27,239
|
$ |
13,907
|
||||||
Non-spot
revenues
|
3,266
|
2,059
|
1,207
|
|||||||||
Segment
Net Revenues
|
$ |
44,412
|
$ |
29,298
|
$ |
15,114
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
44,326
|
$ |
29,298
|
$ |
15,028
|
||||||
Non-broadcast
operations
|
86
|
-
|
86
|
|||||||||
Segment
Net Revenues
|
$ |
44,412
|
$ |
29,298
|
$ |
15,114
|
||||||
Segment
EBITDA
|
$ |
19,486
|
$ |
11,719
|
$ |
7,767
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
19,613
|
$ |
11,733
|
$ |
7,880
|
||||||
Non-broadcast
operations
|
(127 | ) | (14 | ) | (113 | ) | ||||||
Segment
EBITDA
|
$ |
19,486
|
$ |
11,719
|
$ |
7,767
|
||||||
Segment
EBITDA Margin
|
44 | % | 40 | % | 4 | % |
·
|
Segment
Net Revenues for the three months ended September 30, 2007
increased by US$ 15.1 million, or 52%, compared to the three months
ended
September 30, 2006. Spot revenues increased by US$ 13.9 million,
or 51%,
driven primarily by increases in the average revenue per rating point
sold
in each of our channels, which more than offset a decline in the
volume of
GRPs sold. Non-spot revenues increased by US$ 1.2 million, or 59%,
primarily due to increased cable tariff revenue. The acquisition
of
Sport.ro added approximately US$ 1.9 million to our revenues for
the three
months ended September 30, 2007.
|
·
|
Segment
EBITDA for the three months ended September 30, 2007 increased
by
US$ 7.8 million, or 66%, compared to the three months ended September
30,
2006, resulting in an EBITDA margin of 44%, compared to 40% in the
three
months ended September 30, 2006. Costs charged in arriving at
Segment EBITDA for the three months ended September 30, 2007 increased
by
US$ 7.3 million, or 42%, compared to the three months ended September
30,
2006. Cost of programming grew by US$ 4.4 million, or 41%, due
partially to the inclusion of the salary-related costs of production
staff
within cost of programming rather than operating costs; excluding
the
impact of this change in classification, cost of programming increased
by
US$ 1.7 million, or 16%, as a result of increased market competition
and
investment in quality programming. Other operating costs
increased by US$ 1.5 million, or 30%, after the difference in
classification described above; excluding the impact of this change
in
classification, other operating costs increased by US$ 4.2 million,
or
83%, primarily due to the impact of a weaker dollar on local currency
denominated staffing costs and an increase in social security
costs. Selling, general and administrative expenses increased
by US$ 1.4 million, or 79%, primarily due to increased consultancy
fees,
increased office running costs and increased marketing and research
costs. The acquisition of Sport.ro added approximately US$ 0.3
million to our Segment EBITDA for the three months ended September
30,
2007.
|
ROMANIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
126,750
|
$ |
91,109
|
$ |
35,641
|
||||||
Non-spot
revenues
|
9,228
|
5,829
|
3,399
|
|||||||||
Segment
Net Revenues
|
$ |
135,978
|
$ |
96,938
|
$ |
39,040
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
135,836
|
$ |
96,938
|
$ |
38,898
|
||||||
Non-broadcast
operations
|
142
|
-
|
142
|
|||||||||
Segment
Net Revenues
|
$ |
135,978
|
$ |
96,938
|
$ |
39,040
|
||||||
Segment
EBITDA
|
$ |
57,152
|
$ |
39,756
|
$ |
17,396
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
57,512
|
$ |
39,770
|
$ |
17,742
|
||||||
Non-broadcast
operations
|
(360 | ) | (14 | ) | (346 | ) | ||||||
Segment
EBITDA
|
$ |
57,152
|
$ |
39,756
|
$ |
17,396
|
||||||
Segment
EBITDA Margin
|
42 | % | 41 | % | 1 | % |
·
|
Segment
Net Revenues for the nine months ended September 30, 2007
increased by US$ 39.0 million, or 40%, compared to the nine months
ended
September 30, 2006. Spot revenues increased by US$ 35.6 million,
or 39%,
driven primarily by increases in the average revenue per rating point
sold
in each of our channels, which more than offset a decline in the
volume of
GRPs sold, particularly in the first half. Non-spot revenues increased
by
US$ 3.4 million, or 58%, primarily due to increased cable tariff
revenue.
The acquisition of Sport.ro added approximately US$ 4.8 million to
our
revenues for the nine months ended September 30,
2007.
|
SLOVAK
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
19,344
|
$ |
12,735
|
$ |
6,609
|
||||||
Non-spot
revenues
|
942
|
1,160
|
(218 | ) | ||||||||
Segment
Net Revenues
|
$ |
20,286
|
$ |
13,895
|
$ |
6,391
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
20,183
|
$ |
13,880
|
$ |
6,303
|
||||||
Non-broadcast
operations
|
103
|
15
|
88
|
|||||||||
Segment
Net Revenues
|
$ |
20,286
|
$ |
13,895
|
$ |
6,391
|
||||||
Segment
EBITDA
|
$ |
5,544
|
$ |
2,408
|
$ |
3,136
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
5,656
|
$ |
2,460
|
$ |
3,196
|
||||||
Non-broadcast
operations
|
(112 | ) | (52 | ) | (60 | ) | ||||||
Segment
EBITDA
|
$ |
5,544
|
$ |
2,408
|
$ |
3,136
|
||||||
Segment
EBITDA Margin
|
27 | % | 17 | % | 10 | % |
·
|
Segment
Net Revenues for the three months ended September 30, 2007
increased by US$ 6.4 million, or 46%, compared to the three months
ended
September 30, 2006. In local currency, Segment Net Revenues
increased by 19%. The increase in Segment Net Revenues was due
to an increase of US$ 6.6 million, or 52%, in spot revenues, offset
by a
decrease of US$ 0.2 million, or 19%, in non-spot revenues. The
increase in spot revenues is mainly due to an increase in the average
revenue per rating point sold, as well as a slight increase in the
volume
of GRPs sold.
|
·
|
Segment
EBITDA for the three months ended September 30, 2007 increased
by
US$ 3.1 million, or 130%, compared to the three months ended September
30,
2006, resulting in an EBITDA margin of 27%, compared to 17% in the
three
months ended September 30, 2006. In local currency, Segment
EBITDA increased by 88%. Costs charged in arriving at Segment
EBITDA for the three months ended September 30, 2007 increased by
US$ 3.3
million, or 29%, compared to the three months ended September 30,
2006. Cost of programming increased by US$ 2.4 million, or 45%,
primarily due to increased investment in local productions such as
a local
version of Pop Idol, which was launched in September 2007, and syndicated
programming. Other operating costs increased by US$ 0.9
million, or 22%, primarily due to increased salary and wage costs
and
increased broadcast and operating expenses. Selling, general
and administrative expenses were in line with the three months ended
September 30, 2006.
|
SLOVAK
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
65,913
|
$ |
42,231
|
$ |
23,682
|
||||||
Non-spot
revenues
|
2,702
|
2,916
|
(214 | ) | ||||||||
Segment
Net Revenues
|
$ |
68,615
|
$ |
45,147
|
$ |
23,468
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
68,408
|
$ |
45,126
|
$ |
23,282
|
||||||
Non-broadcast
operations
|
207
|
21
|
186
|
|||||||||
Segment
Net Revenues
|
$ |
68,615
|
$ |
45,147
|
$ |
23,468
|
||||||
Segment
EBITDA
|
$ |
23,012
|
$ |
9,258
|
$ |
13,754
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
23,409
|
$ |
9,329
|
$ |
14,080
|
||||||
Non-broadcast
operations
|
(397 | ) | (71 | ) | (326 | ) | ||||||
Segment
EBITDA
|
$ |
23,012
|
$ |
9,258
|
$ |
13,754
|
||||||
Segment
EBITDA Margin
|
34 | % | 21 | % | 13 | % |
·
|
Segment
Net Revenues for the nine months ended September 30, 2007
increased by US$ 23.5 million, or 52%, compared to the nine months
ended
September 30, 2006. In local currency, Segment Net Revenues
increased by 31%. The increase in Segment Net Revenues was due
to an increase of US$ 23.7 million, or 56%, in spot revenues, partially
offset by a decrease of US$ 0.2 million in non-spot
revenues. The increase in spot revenues is mainly due to an
increase in the average revenue per rating point sold as well as
an
increase in the volume of GRPs sold. Our advertising revenues
benefited from the launch of a new mobile phone operator during the
nine
months ended September 30, 2007, as well as increased spending from
existing customers, particularly in the pharmaceutical
sector. Segment Net Revenues for the nine months ended
September 30, 2006 included approximately US$ 1.8 million in respect
of
the period prior to January 23, 2006 when Markiza was accounted for
as an
equity affiliate.
|
·
|
Segment
EBITDA for the nine months ended September 30, 2007 increased by
US$ 13.8 million, or 149%, compared to the nine months ended September
30,
2006, resulting in an EBITDA margin of 34% compared to 21% in the
nine
months ended September 30, 2006. In local currency, Segment
EBITDA increased by 81%. Costs charged in arriving at Segment
EBITDA for the nine months ended September 30, 2007 increased by
US$ 9.7
million, or 27%, compared to the nine months ended September 30,
2006. Cost of programming increased by US$ 5.6 million, or 30%,
due to increased investment in local productions and syndicated
programming; the amount charged in the nine months ended September
30,
2006 included a charge of US$ 0.7 million to write off an unsuccessful
show. Other operating costs increased by US$ 3.2 million, or
28%, due to increase salary and wage costs, increased accruals for
performance-related bonus payments, increased broadcast and operating
expenses and increased music right costs. Selling, general and
administrative expenses increased by US$ 0.9 million, or 16%, primarily
due to increased consultancy and increased marketing and research
costs,
in addition to increased office running costs. Costs charged in
arriving at Segment EBITDA for the nine months ended September 30,
2006
included US$ 1.7 million of programming costs, US$ 0.9 million of
other
operating costs and US$ 0.4 million of selling, general and administrative
expenses in respect of the period prior to January 23, 2006, when
Markiza
was accounted for as an equity
affiliate.
|
SLOVENIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
10,413
|
$ |
8,637
|
$ |
1,776
|
||||||
Non-spot
revenues
|
1,132
|
464
|
668
|
|||||||||
Segment
Net Revenues
|
$ |
11,545
|
$ |
9,101
|
$ |
2,444
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
11,076
|
$ |
8,753
|
$ |
2,323
|
||||||
Non-broadcast
operations
|
469
|
348
|
121
|
|||||||||
Segment
Net Revenues
|
$ |
11,545
|
$ |
9,101
|
$ |
2,444
|
||||||
Segment
EBITDA
|
$ |
854
|
$ |
1,225
|
$ | (371 | ) | |||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
1,869
|
$ |
1,256
|
$ |
613
|
||||||
Non-broadcast
operations
|
(1,015 | ) | (31 | ) | (984 | ) | ||||||
Segment
EBITDA
|
$ |
854
|
$ |
1,225
|
$ | (371 | ) | |||||
Segment
EBITDA Margin
|
7 | % | 13 | % | (6 | )% |
·
|
Segment
Net Revenues for the three months ended September 30, 2007
increased by US$ 2.4 million, or 27%, compared to the three months
ended
September 30, 2006. Spot revenues increased by US$ 1.8 million,
or 21%, as our operations benefited from an increase in the average
revenue per GRP sold, which more than offset a slight decline in
volume. Non-spot revenues increased by US$ 0.7 million, or
144%, due to increased short message service (“SMS”) revenues and also
increased sponsorship.
|
·
|
Segment
EBITDA for the three months ended September 30, 2007 decreased
by
US$ 0.4 million, or 30%, compared to the three months September 30,
2006,
resulting in an EBITDA margin of 7% compared to 13% in the three
months
ended September 30, 2006. Costs charged in arriving at Segment
EBITDA for the three months ended September 30, 2007 increased by
US$ 2.8
million, or 36%, compared to the three months ended September 30,
2006. Cost of programming grew by US$ 2.7 million, or 83%, due
to increased investment in programming in a more competitive market
environment. We expect to continue to increase our investment in
programming in order to maintain our market leading
position. Other operating costs decreased by US$ 0.4 million,
or 13%, primarily due to lower salary and freelance
costs. Selling, general and administrative expenses increased
by US$ 0.5 million, or 34%, primarily due to higher consultancy fees,
in
addition to higher office running
costs.
|
SLOVENIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
39,173
|
$ |
33,312
|
$ |
5,861
|
||||||
Non-spot
revenues
|
5,136
|
1,571
|
3,565
|
|||||||||
Segment
Net Revenues
|
$ |
44,309
|
$ |
34,883
|
$ |
9,426
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
42,901
|
$ |
33,779
|
$ |
9,122
|
||||||
Non-broadcast
operations
|
1,408
|
1,104
|
304
|
|||||||||
Segment
Net Revenues
|
$ |
44,309
|
$ |
34,883
|
$ |
9,426
|
||||||
Segment
EBITDA
|
$ |
12,243
|
$ |
10,688
|
$ |
1,555
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
12,752
|
$ |
10,561
|
$ |
2,191
|
||||||
Non-broadcast
operations
|
(509 | ) |
127
|
(636 | ) | |||||||
Segment
EBITDA
|
$ |
12,243
|
$ |
10,688
|
$ |
1,555
|
||||||
Segment
EBITDA Margin
|
28 | % | 31 | % | (3 | )% |
·
|
Segment
Net Revenues for the nine months ended September 30, 2007
increased by US$ 9.4 million, or 27%, compared to the nine months
ended
September 30, 2006. Spot revenues increased by US$ 5.9 million,
or 18%, as our operations benefited from an increase in the average
revenue per rating point sold, which more than offset a slight decline
in
the volume of GRPs sold. Non-spot revenues increased by US$ 3.6
million, or 227%, due to an increased level of sponsorship, and increased
SMS revenues.
|
·
|
Segment
EBITDA for the nine months ended September 30, 2007 increased
by
US$ 1.6 million, or 15%, compared to the nine months ended September
30,
2006, resulting in an EBITDA margin of 28% compared to 31% in the
nine
months ended September 30, 2006. Costs charged in arriving at
Segment EBITDA for the nine months ended September 30, 2007 increased
by
US$ 7.9 million, or 33%, compared to the nine months ended September
30,
2006. Cost of programming grew by US$ 7.5 million, or 71%, due
to increased investment in programming in a more competitive market
environment. Other operating costs decreased by US$ 1.1
million, or 12%, primarily due to lower salary and freelance costs,
partially offset by higher music rights costs and higher transmitter
and
associated maintenance costs. Selling, general and
administrative expenses increased by US$ 1.5 million, or 38%, primarily
due to higher marketing and research costs, higher consultancy fees
and
higher office running costs.
|
UKRAINE
(STUDIO 1+1) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
34,461
|
$ |
14,413
|
$ |
20,048
|
||||||
Non-spot
revenues
|
5,121
|
1,165
|
3,956
|
|||||||||
Segment
Net Revenues
|
$ |
39,582
|
$ |
15,578
|
$ |
24,004
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
39,582
|
$ |
15,578
|
$ |
24,004
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
Net Revenues
|
$ |
39,582
|
$ |
15,578
|
$ |
24,004
|
||||||
Segment
EBITDA
|
$ |
16,599
|
$ | (838 | ) | $ |
17,437
|
|||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
16,750
|
$ | (838 | ) | $ |
17,588
|
|||||
Non-broadcast
operations
|
(151 | ) |
-
|
(151 | ) | |||||||
Segment
EBITDA
|
$ |
16,599
|
$ | (838 | ) | $ |
17,437
|
|||||
Segment
EBITDA Margin
|
42 | % | (5 | )% | 47 | % |
·
|
Segment
Net Revenues for the three months ended September 30, 2007
increased by US$ 24.0 million, or 154%, compared to the three months
ended
September 30, 2006. Spot revenues increased by US$ 20.0 million,
or 139%,
primarily due to an estimated US$ 16.5 million of political advertising
generated from the elections held on September 30, 2007. We achieved
a
very strong increase in the average revenue per rating point sold
as well
as a slight increase in the volume of GRPs sold Non-spot
revenues increased by US$ 4.0 million, or 340%, primarily due to
increased
sponsorship, including US$ 1.5 million in political advertising,
and the
sale of surplus programming.
|
·
|
Segment
EBITDA for the three months ended September 30, 2007 increased
by
US$ 17.4 million, compared to the three months ended September 30,
2006,
resulting in an EBITDA margin of 42% compared to a (5)% Segment EBITDA
margin loss in the three months ended September 30, 2006. Costs
charged in arriving at Segment EBITDA for the three months ended
September
30, 2007 increased by US$ 6.6 million, or 40%, compared to the three
months ended September 30, 2006. Cost of programming grew by
US$ 6.5 million, or 67%, with the increase reflecting continued price
inflation for Russian programming, which drives strong ratings in
the
market, as well as increased investment in such programming to improve
our
programming schedule and boost ratings following disappointing ratings
earlier in the year. Other operating costs increased by US$ 1.6
million, or 45%, primarily due to increased salary costs in addition
to
increased broadcast operating expenses. Selling, general and
administrative expenses decreased by US$ 1.5 million, or 45%, primarily
due to decreased taxes, partially offset by higher office running
costs.
|
UKRAINE
(STUDIO 1+1) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
67,567
|
$ |
54,988
|
$ |
12,579
|
||||||
Non-spot
revenues
|
12,791
|
7,129
|
5,662
|
|||||||||
Segment
Net Revenues
|
$ |
80,358
|
$ |
62,117
|
$ |
18,241
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
80,358
|
$ |
62,117
|
$ |
18,241
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
Net Revenues
|
$ |
80,358
|
$ |
62,117
|
$ |
18,241
|
||||||
Segment
EBITDA
|
$ |
14,794
|
$ |
16,183
|
$ | (1,389 | ) | |||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
15,128
|
$ |
16,183
|
$ | (1,055 | ) | |||||
Non-broadcast
operations
|
(334 | ) |
-
|
(334 | ) | |||||||
Segment
EBITDA
|
$ |
14,794
|
$ |
16,183
|
$ | (1,389 | ) | |||||
Segment
EBITDA Margin
|
18 | % | 26 | % | (8 | )% |
·
|
Segment
Net Revenues for the nine months ended September 30, 2007
increased by US$ 18.2 million, or 29%, compared to the nine months
ended
September 30, 2006. Spot revenues increased by US$ 12.6 million,
or 23%,
primarily due to an estimated US$ 16.5 million of political advertising
generated from the elections held on September 30, 2007. This
offset a decline in revenues from a decrease in the volume of GRPs
sold in
the first half as our ratings declined due to the poor performance
of
certain series on Studio 1+1 and increased competition from other
broadcasters. In the nine months ended September 30, 2006, we
received US$ 8.4 million of political advertising revenue ahead of
the
parliamentary elections in March 2006 and benefited from the extraordinary
ratings success of the Russian series Ugly Betty, which ran until
July
2006. Non-spot revenues increased by US$ 5.7 million, or 79%, primarily
due to the sale of surplus programming and increased sponsorship,
including political advertising.
|
·
|
Segment
EBITDA for the nine months ended September 30, 2007 decreased by
US$ 1.4 million, or 9%, compared to the nine months ended September
30,
2006, resulting in an EBITDA margin of 18% compared to an EBITDA
margin of
26% in the nine months ended September 30, 2006. Costs charged
in arriving at Segment EBITDA for the nine months ended September
30, 2007
increased by US$ 19.6 million, or 43%, compared to the nine months
ended
September 30, 2006. Cost of programming grew by US$ 19.4
million, or 72%, including a charge of US$ 2.7 million in the first
half
to write off poorly performing programming, principally second runs
of
American series. The increase in cost of programming reflects
continued price inflation for Russian programming, which drives strong
ratings in the market, as well as increased investment in such programming
to improve our programming schedule and boost ratings following
disappointing ratings earlier in the year in comparison with unusually
strong programming on Inter. Other operating costs increased by
US$ 3.1 million, or 30%, due to increased salary costs and increased
broadcast operating expenses. Selling, general and
administrative expenses decreased by US$ 2.9 million, or 34%, primarily
due to decreased taxes and reduced bad debt expense, partially offset
by
higher office running costs.
|
UKRAINE
(KINO, CITI) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
305
|
$ |
41
|
$ |
264
|
||||||
Non-spot
revenues
|
511
|
140
|
371
|
|||||||||
Segment
Net Revenues
|
$ |
816
|
$ |
181
|
$ |
635
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
816
|
$ |
181
|
$ |
635
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
Net Revenues
|
$ |
816
|
$ |
181
|
$ |
635
|
||||||
Segment
EBITDA
|
$ | (1,339 | ) | $ | (1,182 | ) | $ | (157 | ) | |||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (1,339 | ) | $ | (1,182 | ) | $ | (157 | ) | |||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
EBITDA
|
$ | (1,339 | ) | $ | (1,182 | ) | $ | (157 | ) | |||
Segment
EBITDA Margin
|
(164 | )% | (653 | )% | 489 | % |
·
|
Segment
Net Revenues for the three months ended September 30, 2007
increased by US$ 0.6 million, or 351%, compared to the three months
ended
September 30, 2006. Spot revenues increased by US$ 0.3 million, or
644%. Non-spot revenues increased by US$ 0.4 million, or 265%,
primarily due to increased program
sponsorship.
|
·
|
Segment
EBITDA for the three months ended September 30, 2007 decreased
by
US$ 0.2 million, or 13%, compared to the three months ended September
30,
2006. Costs charged in arriving at Segment EBITDA for the three
months ended September 30, 2007 increased by US$ 0.8 million, or
57%,
compared to the three months ended September 30, 2006 as we continued
to
develop the channels. Cost of programming grew by US$ 0.2
million, or 23%. Other operating costs increased by US$ 0.6
million. Selling, general and administrative expenses were in
line with the three months ended September 30,
2006.
|
UKRAINE
(KINO, CITI) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006(1)
|
Movement
|
||||||||||
Spot
revenues
|
$ |
783
|
$ |
362
|
$ |
421
|
||||||
Non-spot
revenues
|
1,085
|
392
|
693
|
|||||||||
Segment
Net Revenues
|
$ |
1,868
|
$ |
754
|
$ |
1,114
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
1,868
|
$ |
754
|
$ |
1,114
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
Net Revenues
|
$ |
1,868
|
$ |
754
|
$ |
1,114
|
||||||
Segment
EBITDA
|
$ | (5,511 | ) | $ | (1,736 | ) | $ | (3,775 | ) | |||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (5,511 | ) | $ | (1,736 | ) | $ | (3,775 | ) | |||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
EBITDA
|
$ | (5,511 | ) | $ | (1,736 | ) | $ | (3,775 | ) | |||
Segment
EBITDA Margin
|
(295 | )% | (230 | )% | (65 | )% |
·
|
Segment
Net Revenues for the nine months ended September 30, 2007
increased by US$ 1.1 million, or 148%, compared to the nine months
ended
September 30, 2006. Spot revenues increased by US$ 0.4 million, or
116%. Non-spot revenues increased by US$ 0.7 million, or 177%,
primarily due to increased program
sponsorship.
|
·
|
Segment
EBITDA for the nine months ended September 30, 2007 decreased by
US$ 3.8 million, or 217%, compared to the nine months ended September
30,
2006. Costs charged in arriving at Segment EBITDA for the nine
months ended September 30, 2007 increased by US$ 4.9 million, or
195%,
compared to the nine months ended September 30, 2006 as we continued
to
develop the channels. Cost of programming grew by US$ 3.2
million, or 255%. Other operating costs increased by US$ 1.2
million, or 169%. Selling, general and administrative expenses
increased by US$ 0.5 million, or
89%.
|
For
the Three Months
Ended
September 30,
(US$
000’s)
|
For
the Nine Months
Ended
September 30,
(US$
000’s)
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Production
expenses
|
$ |
27,257
|
$ |
22,932
|
$ |
95,590
|
$ |
71,952
|
||||||||
Program
amortization
|
38,652
|
24,988
|
119,445
|
77,236
|
||||||||||||
Cost
of programming
|
$ |
65,909
|
$ |
47,920
|
$ |
215,035
|
$ |
149,188
|
|
·
|
US$
1.0 million reduction in programming costs from our Croatia
operations;
|
|
·
|
US$
2.7 million of additional programming costs from our Czech Republic
operations.
|
|
·
|
US$
4.4 million of additional programming costs from our Romania
operations;
|
|
·
|
US$
2.4 million of additional programming costs from our Slovak Republic
operations;
|
|
·
|
US$
2.8 million of additional programming costs from our Slovenia
operations;
|
|
·
|
US$
6.5 million of additional programming costs from our Ukraine (STUDIO
1+1)
operations; and
|
|
·
|
US$
0.2 million of additional programming costs from our Ukraine (KINO,
CITI)
operations;
|
|
·
|
US$
6.8 million of additional programming costs from our Croatia
operations;
|
|
·
|
US$
2.8 million of additional programming costs from our Czech Republic
operations;
|
|
·
|
US$
18.8 million of additional programming costs from our Romania
operations;
|
|
·
|
US$
7.3 million of additional programming costs from our Slovak Republic
operations, which have been consolidated for the entire nine-month
period
in 2007;
|
|
·
|
US$
7.5 million of additional programming costs from our Slovenia
operations;
|
|
·
|
US$
19.5 million of additional programming costs from our Ukraine (STUDIO
1+1)
operations; and
|
|
·
|
US$
3.2 million of additional programming costs from our Ukraine (KINO,
CITI)
operations;
|
For
the Three Months
Ended
September 30,
(US$
000’s)
|
For
the Nine Months
Ended
September 30,
(US$
000’s)
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Program
amortization: (1)
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
3,142
|
$ |
2,640
|
$ |
13,777
|
$ |
9,530
|
||||||||
Czech
Republic (TV NOVA)
|
6,730
|
5,263
|
20,581
|
19,152
|
||||||||||||
Romania
(PRO TV, ACASA, PRO CINEMA, PRO TV INTERNATIONAL and
SPORT.RO)
|
8,314
|
5,809
|
27,649
|
19,599
|
||||||||||||
Slovak
Republic (MARKIZA TV) (post-acquisition)
|
4,391
|
2,301
|
10,567
|
6,379
|
||||||||||||
Slovenia
(POP TV and KANAL A)
|
2,342
|
1,418
|
6,784
|
4,623
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
13,076
|
7,139
|
37,566
|
19,149
|
||||||||||||
Ukraine
(KINO, CITI)
|
657
|
418
|
2,521
|
539
|
||||||||||||
$ |
38,652
|
$ |
24,988
|
$ |
119,445
|
$ |
78,971
|
Cash
paid for programming:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
5,484
|
$ |
4,341
|
$ |
16,391
|
$ |
11,939
|
||||||||
Czech
Republic (TV NOVA)
|
6,814
|
2,941
|
17,662
|
19,154
|
||||||||||||
Romania
(PRO TV, ACASA, PRO CINEMA, PRO TV INTERNATIONAL and
SPORT.RO)
|
19,875
|
15,786
|
42,852
|
33,181
|
||||||||||||
Slovak
Republic (MARKIZA TV)
|
3,585
|
2,831
|
11,750
|
8,373
|
||||||||||||
Slovenia
(POP TV and KANAL A)
|
3,568
|
2,373
|
8,220
|
5,872
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
16,509
|
13,241
|
43,023
|
26,923
|
||||||||||||
Ukraine
(KINO, CITI)
|
375
|
273
|
1,537
|
388
|
||||||||||||
$ |
56,210
|
$ |
41,786
|
$ |
141,435
|
$ |
105,830
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
7,055
|
$ |
4,288
|
$ |
2,767
|
||||||
Czech
Republic
|
51,140
|
40,141
|
10,999
|
|||||||||
Romania
|
44,414
|
29,298
|
15,116
|
|||||||||
Slovak
Republic
|
20,284
|
13,895
|
6,389
|
|||||||||
Slovenia
|
11,545
|
9,101
|
2,444
|
|||||||||
Ukraine
(STUDIO 1+1)
|
39,582
|
15,578
|
24,004
|
|||||||||
Ukraine
(KINO, CITI)
|
816
|
181
|
635
|
|||||||||
Total
Consolidated Net Revenues
|
$ |
174,836
|
$ |
112,482
|
$ |
62,354
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
24,701
|
$ |
13,745
|
$ |
10,956
|
||||||
Czech
Republic
|
183,203
|
137,002
|
46,201
|
|||||||||
Romania
|
135,978
|
96,938
|
39,040
|
|||||||||
Slovak
Republic *
|
68,615
|
43,386
|
25,229
|
|||||||||
Slovenia
|
44,309
|
34,883
|
9,426
|
|||||||||
Ukraine
(STUDIO 1+1)
|
80,358
|
62,117
|
18,241
|
|||||||||
Ukraine
(KINO, CITI)
|
1,868
|
754
|
1,114
|
|||||||||
Total
Consolidated Net Revenues
|
$ |
539,032
|
$ |
388,825
|
$ |
150,207
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
costs
|
$ |
27,166
|
$ |
22,073
|
$ |
5,093
|
||||||
Cost
of programming
|
65,909
|
47,920
|
17,989
|
|||||||||
Depreciation
of station property, plant and equipment
|
8,768
|
6,080
|
2,688
|
|||||||||
Amortization
of broadcast licenses and other intangibles
|
6,595
|
5,015
|
1,580
|
|||||||||
Total
Consolidated Cost of Revenues
|
$ |
108,438
|
$ |
81,088
|
$ |
27,350
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
costs
|
$ |
83,767
|
$ |
71,087
|
$ |
12,680
|
||||||
Cost
of programming
|
215,035
|
149,188
|
65,847
|
|||||||||
Depreciation
of station property, plant and equipment
|
23,347
|
17,841
|
5,506
|
|||||||||
Amortization
of broadcast licenses and other intangibles
|
16,922
|
13,967
|
2,955
|
|||||||||
Total
Consolidated Cost of Revenues
|
$ |
339,071
|
$ |
252,083
|
$ |
86,988
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
2,691
|
$ |
2,202
|
$ |
489
|
||||||
Czech
Republic
|
5,595
|
5,317
|
278
|
|||||||||
Romania
|
3,224
|
1,806
|
1,418
|
|||||||||
Slovak
Republic
|
2,279
|
2,303
|
(24 | ) | ||||||||
Slovenia
|
1,821
|
1,356
|
465
|
|||||||||
Ukraine
(STUDIO 1+1)
|
1,814
|
3,265
|
(1,451 | ) | ||||||||
Ukraine
(KINO, CITI)
|
185
|
232
|
(47 | ) | ||||||||
Total
Consolidated Station Selling, General and Administrative
Expenses
|
$ |
17,609
|
$ |
16,481
|
$ |
1,128
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
6,430
|
$ |
4,991
|
$ |
1,439
|
||||||
Czech
Republic
|
15,596
|
15,383
|
213
|
|||||||||
Romania
|
8,568
|
6,616
|
1,952
|
|||||||||
Slovak
Republic
|
6,539
|
5,216
|
1,323
|
|||||||||
Slovenia
|
5,293
|
3,840
|
1,453
|
|||||||||
Ukraine
(STUDIO 1+1)
|
5,698
|
8,619
|
(2,921 | ) | ||||||||
Ukraine
(KINO, CITI)
|
965
|
523
|
442
|
|||||||||
Total
Consolidated Station Selling, General and Administrative
Expenses
|
$ |
49,089
|
$ |
45,188
|
$ |
3,901
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ |
12,345
|
$ |
7,375
|
$ |
4,970
|
||||||
Stock-based
compensation
|
1,494
|
967
|
527
|
|||||||||
Total
Corporate Operating Costs
|
$ |
13,839
|
$ |
8,342
|
$ |
5,497
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ |
25,989
|
$ |
21,634
|
$ |
4,355
|
||||||
Stock-based
compensation
|
4,098
|
2,385
|
1,713
|
|||||||||
Total
Corporate Operating Costs
|
$ |
30,087
|
$ |
24,019
|
$ |
6,068
|
·
|
increased
accruals for performance-related bonus
payments;
|
·
|
increased
business development expenses incurred in researching potential
acquisition targets, partly offset
by;
|
·
|
decreased
property-related costs, as the expense incurred in the nine months
ended
September 30, 2006 included a lease exit charge of approximately
US$ 1.6
million (including additional depreciation of US$ 0.3 million) incurred
following the relocation of our London office during the first quarter
of
2006; and
|
·
|
decreased
legal costs incurred in connection with legal proceedings in respect
of
our Ukraine operations.
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
Income
|
$ |
34,950
|
$ |
6,571
|
$ |
28,379
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
Income
|
$ |
120,785
|
$ |
66,787
|
$ |
53,998
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Interest
income
|
$ |
1,180
|
$ |
1,554
|
$ | (374 | ) | |||||
Interest
expense
|
(11,883 | ) | (11,066 | ) | (817 | ) | ||||||
Foreign
currency exchange (loss) / gain, net
|
(23,300 | ) |
6,018
|
(29,318 | ) | |||||||
Change
in fair value of derivatives
|
(8,555 | ) | (881 | ) | (7,674 | ) | ||||||
Other
expense
|
(6,513 | ) | (412 | ) | (6,101 | ) | ||||||
Provision
for income taxes
|
(131 | ) | (1,235 | ) |
1,104
|
|||||||
Minority
interest in income of consolidated subsidiaries
|
(4,511 | ) | (461 | ) | (4,050 | ) | ||||||
Gain
on sale of unconsolidated affiliate
|
-
|
6,179
|
(6,179 | ) | ||||||||
Discontinued
operations
|
$ |
-
|
$ | (2,333 | ) | $ |
2,333
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Interest
income
|
$ |
4,326
|
$ |
4,748
|
$ | (422 | ) | |||||
Interest
expense
|
(42,717 | ) | (32,921 | ) | (9,796 | ) | ||||||
Foreign
currency exchange gain loss, net
|
(28,552 | ) | (25,469 | ) | (3,083 | ) | ||||||
Change
in fair value of derivatives
|
3,497
|
(2,757 | ) |
6,254
|
||||||||
Other
expense
|
(13,272 | ) | (793 | ) | (12,479 | ) | ||||||
Provision
for income taxes
|
(18,609 | ) | (8,811 | ) | (9,798 | ) | ||||||
Minority
interest in income of consolidated subsidiaries
|
(9,881 | ) | (7,178 | ) | (2,703 | ) | ||||||
Equity
in income / (loss) of unconsolidated affiliates
|
-
|
(730 | ) |
730
|
||||||||
Gain
on sale of unconsolidated affiliate
|
-
|
6,179
|
(6,179 | ) | ||||||||
Discontinued
operations
|
$ |
-
|
$ | (4,863 | ) | $ |
4,863
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Romania
operations
|
$ |
-
|
$ |
7
|
$ | (7 | ) | |||||
Slovak
Republic operations
|
-
|
(737 | ) |
737
|
||||||||
Total
Equity in Income / (Loss) of Unconsolidated
Affiliates
|
$ |
-
|
$ | (730 | ) | $ |
730
|
September 30,
2007
|
December 31,
2006
|
Movement
|
||||||||||
Current
assets
|
$ |
489,398
|
$ |
413,616
|
$ |
75,782
|
||||||
Non-current
assets
|
1,678,139
|
1,405,384
|
272,755
|
|||||||||
Current
liabilities
|
245,643
|
182,961
|
62,682
|
|||||||||
Non-current
liabilities
|
659,083
|
574,084
|
84,999
|
|||||||||
Minority
interests in consolidated subsidiaries
|
15,780
|
26,189
|
(10,409 | ) | ||||||||
Shareholders’
equity
|
$ |
1,247,031
|
$ |
1,035,766
|
211,265
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||
2007
|
2006
|
|||||||
Net
cash generated from continuing operating activities
|
$ |
95,889
|
$ |
67,907
|
||||
Net
cash used in continuing investing activities
|
(188,463 | ) | (100,818 | ) | ||||
Net
cash received from financing activities
|
136,446
|
132,227
|
||||||
Net
cash used in discontinued operations – operating
activities
|
(2,164 | ) | (1,690 | ) | ||||
Net
increase in cash and cash equivalents
|
$ |
46,665
|
$ |
92,844
|
·
|
Payment
of SKK 1.9 billion (approximately US$ 78.5 million) in connection
with our
acquisition of the final 20% stake in our Slovak Republic operations
(for
further information, see Part I, Item 1, Note
3);
|
·
|
Payment
of US$ 51.6 million in connection with our acquisition of an additional
5%
stake in our Romania broadcasting operations and a 20% stake in our
Romanian production company (for further information, see Part I,
Item 1,
Note 3);
|
·
|
Payments
of EUR 6.7 million (approximately US$ 8.4 million) in connection
with our
acquisition of Sport.ro (for further information, see Part I, Item
1, Note
3);
|
·
|
Payments
of US$ 3.1 million in connection with our acquisition of a 60.4%
stake in
each of Tor and Zhysa (for further information, see Part I, Item
1, Note
3); and
|
·
|
Capital
expenditure of US$ 46.3 million.
|
Operating
segment (US$ 000’s)
|
September 30,
2007
|
December 31,
2006
|
||||||
Croatia
|
$ |
95,373
|
$ |
67,623
|
||||
Czech
Republic
|
420,814
|
434,897
|
||||||
Romania
|
52,613
|
25,620
|
||||||
Slovak
Republic
|
10,186
|
23,670
|
||||||
Slovenia
|
-
|
-
|
||||||
Ukraine
(STUDIO 1+1)
|
930
|
-
|
||||||
Ukraine
(KINO, CITI)
|
14,505
|
4,621
|
||||||
Total
|
$ |
594,421
|
$ |
556,431
|
Contractual
Obligations
|
Payments
due by period (US$ 000’s)
|
|||||||||||||||||||
Total
|
Less
than 1 year
|
1-3
years
|
3-5
years
|
More
than 5 years
|
||||||||||||||||
Long-Term
Debt – principal
|
$ |
574,584
|
$ |
12,839
|
$ |
1,700
|
$ |
-
|
$ |
560,045
|
||||||||||
Long-Term
Debt – interest
|
229,995
|
41,080
|
82,280
|
81,974
|
24,661
|
|||||||||||||||
Capital
Lease Obligations
|
6,838
|
860
|
1,591
|
1,420
|
2,967
|
|||||||||||||||
Operating
Leases
|
5,160
|
1,876
|
2,368
|
916
|
-
|
|||||||||||||||
Unconditional
Purchase Obligations
|
132,794
|
115,735
|
9,254
|
5,632
|
2,173
|
|||||||||||||||
Other
Long-Term Obligations
|
6,867
|
5,367
|
1,500
|
-
|
-
|
|||||||||||||||
Total
Contractual Obligations
|
$ |
956,238
|
$ |
177,757
|
$ |
98,693
|
$ |
89,942
|
$ |
589,846
|
September 30,
2007
(US$
000’s)
|
||||||
Corporate
|
(1)–(2)
|
$ |
560,045
|
|||
Croatia
operations
|
(3)
|
|
-
|
|||
Czech
Republic operations
|
(4)–(6)
|
|
12,839
|
|||
Romania
operations
|
(7)
|
-
|
||||
Slovenia
operations
|
(8)
|
-
|
||||
Ukraine
(KINO, CITI) operations
|
(9)
|
1,700
|
||||
Total
|
$ |
574,584
|
(1)
|
In
May 2005, we issued senior notes in the aggregate principal amount
of EUR
370.0 million (approximately US$ 524.6 million) consisting of
EUR 245.0 million (approximately US$ 347.4 million) of Fixed
Rate Notes, which bears interest at 8.25% and EUR 125.0 million
(approximately US$ 177.2 million) of 2012 Floating Rate Notes,
which bore interest at six-month Euro Inter-Bank Offered Rate (“EURIBOR”)
plus 5.50%. On May 15, 2007, we redeemed the 2012 Floating Rate
Notes.
|
(2)
|
On
July 21, 2006, we entered into a five-year revolving loan agreement
for
EUR 100.0 million (approximately US$ 141.8 million) arranged by EBRD
and
on August 22, 2007, we entered into a second revolving loan agreement
for
EUR 50.0 million (approximately US$ 70.9 million) also arranged by
EBRD.
ING and CS are participating in the facility for EUR 75.0 million
in
aggregate.
|
(3)
|
On
March 28, 2007, we repaid EUR 0.6 million (approximately US$ 0.9
million),
which was the total amount outstanding to our Croatia operations
under two
loan agreements with Hypo Alpe-Adria Bank d.d. Following this repayment,
the security held by the bank was
released.
|
(4)
|
CET
21 has a four-year credit facility of CZK 1.2 billion (approximately
US$
61.6 million) with CS. The final repayment date is October 31,
2009. This facility may, at the option of CET 21, be drawn in
CZK, US$ or EUR and bears interest at the three-month, six-month
or
twelve-month LIBOR, EURIBOR or PRIBOR rate plus 1.95%. This
facility is secured by a pledge of receivables, which are also subject
to
a factoring arrangement with Factoring Ceska Sporitelna, a.s., a
subsidiary of CS. As at September 30, 2007, there were no
drawings under this facility; however on July 10, 2007, CZK 860.0
million
(approximately US$ 44.2 million) was drawn down under this facility,
of
which CZK 260.0 million (approximately US$ 13.4 million) was repaid
on
July 31, 2007, and CZK 600.0 million (approximately US$ 30.8 million)
was
repaid on September 14, 2007.
|
(5)
|
CET
21 has a working capital credit facility of CZK 250.0 million
(approximately US$ 12.8 million) with CS. This working capital
facility bears interest at the three-month PRIBOR rate plus 1.65%
and is
secured by a pledge of receivables, which are also subject to a factoring
arrangement with Factoring Ceska Sporitelna, a.s. On September 30,
2007,
the full CZK 250.0 million (approximately US$ 12.8 million) was drawn
under this facility bearing interest at an aggregate 4.65% (three-month
PRIBOR effective for this loan was
3.5%).
|
(6)
|
As
at September 30, 2007, there were no drawings under a CZK 300.0 million
(approximately US$ 15.4 million) factoring facility with Factoring
Ceska
Sporitelna, a.s. This facility is available until September 30,
2010 and bears interest at the rate of one-month PRIBOR plus 1.40%
for the
period that actively assigned accounts receivable are
outstanding.
|
(7)
|
The
interest-free loan provided by one of the founding shareholders of
Sport.ro was repaid on August 31,
2007.
|
(8)
|
On
July 29, 2005, Pro Plus entered into a revolving five-year facility
agreement for up to EUR 37.5 million (approximately US$ 53.2 million)
in
aggregate principal amount with ING, Nova Ljubljanska Banka d.d.,
Ljubljana and Bank Austria Creditanstalt d.d., Ljubljana. The
facility availability declines by 10.0% each year for four years
commencing one year after signing, with 60.0% repayable after five
years. This facility is secured by a pledge of the bank
accounts of Pro Plus, the assignment of certain receivables, a pledge
of
our interest in Pro Plus and a guarantee of our wholly-owned subsidiary
CME Media Enterprises B.V. Loans drawn under this facility will
bear interest at a rate of EURIBOR for the period of drawing plus
a margin
of between 2.1% and 3.6% that varies according to the ratio of
consolidated net debt to consolidated broadcasting cash flow for
Pro
Plus. As at September 30, 2007, EUR 30.0 million (approximately
US$ 42.5 million) was available for drawing under this
revolving facility; there were no drawings
outstanding.
|
(9)
|
Our
Ukraine (KINO, CITI) operations have entered into a number of three-year
unsecured loans with Glavred-Media, LLC, the minority shareholder
in
Ukrpromtorg. As at September 30, 2007, the total value of loans
drawn was US$ 1.7 million. The loans are repayable between
August 2009 and December 2009 and bear interest at
9.0%.
|
Jurisdiction
|
Year
|
Croatia
|
2003
|
Czech
Republic
|
2002
|
Germany
|
2000
|
Netherlands
|
2004
|
Romania
|
2002
|
Slovak
Republic
|
2001
|
Slovenia
|
2001
|
Ukraine
|
2003
|
United
States
|
2001
|
Expected
Maturity Dates
|
2007
|
2008
|
2009
|
2010
|
2011
|
Thereafter
|
||||||||||||||||||
Total
debt in Euro (000's)
|
||||||||||||||||||||||||
Fixed
rate
|
-
|
-
|
-
|
-
|
-
|
245,000
|
||||||||||||||||||
Average
interest rate (%)
|
-
|
-
|
-
|
-
|
-
|
8.25 | % | |||||||||||||||||
Variable
rate
|
-
|
-
|
-
|
-
|
-
|
150,000
|
||||||||||||||||||
Average
interest rate (%)
|
-
|
-
|
-
|
-
|
-
|
5.80 | % | |||||||||||||||||
Total
debt in US$ (000's)
|
||||||||||||||||||||||||
Fixed
rate
|
-
|
-
|
1,700
|
-
|
-
|
-
|
||||||||||||||||||
Average
interest rate (%)
|
-
|
-
|
9.00 | % |
-
|
-
|
-
|
|||||||||||||||||
Total
debt in CZK (000's)
|
||||||||||||||||||||||||
Fixed
rate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Average
interest rate (%)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Variable
rate
|
250,000
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Average
interest rate (%)
|
5.15 | % |
-
|
-
|
-
|
-
|
-
|
Yearly
interest charge if interest rates increase by
(US$
000s):
|
||||||||||||||||||||||||||||
Value
of Debt as at September 30, 2007
(US$
000's)
|
Interest
Rate as at September 30, 2007
|
Yearly
Interest Charge
(US$
000’s)
|
1 | % | 2 | % | 3 | % | 4 | % | 5 | % | ||||||||||||||||
212,675
(EUR
150.0 million)
|
5.80 | % |
12,329
|
14,456
|
16,582
|
18,709
|
20,836
|
22,963
|
||||||||||||||||||||
12,839
(CZK
250.0 million)
|
5.15 | % |
661
|
790
|
918
|
1,046
|
1,175
|
1,303
|
||||||||||||||||||||
Total
|
12,990
|
15,246
|
17,500
|
19,755
|
22,011
|
24,266
|
|
·
|
Additional
demands placed on our senior management, who are also responsible
for
managing our existing operations;
|
|
·
|
Increased
overall operating complexity of our business, requiring greater personnel
and other resources;
|
|
·
|
Difficulties
of expanding beyond our core expertise, in the event that we acquire
content providers or other ancillary
businesses;
|
|
·
|
Significant
initial cash expenditures to acquire and integrate new businesses;
and
|
|
·
|
In
the event that debt is incurred to finance acquisitions, additional
debt
service costs related thereto as well as limitations that may arise
under
our Senior Notes and the EBRD Loan.
|
4.02
|
Subscription
Agreement between Central European Media Enterprises Ltd and Igor
Kolomoisky, dated August 24, 2007
|
4.03
|
Registration
Rights Agreement between Central European Media Enterprises Ltd and
Igor
Kolomoisky, dated as of August 24, 2007
|
10.68
|
Supplemental
Agreement Relating to the Loan Agreement dated 21 July, 2006 (as
amended
by an amending Letter Agreement dated 16 November, 2006) between
Central
European Media Enterprises Ltd and the European Bank for Reconstruction
and Development, dated August 22, 2007
|
10.69
|
Loan
Agreement between Central European Media Enterprises Ltd and the
European
Bank for Reconstruction and Development, dated August 22,
2007
|
10.70
|
Agreement
on Transfer of Participation Interest in Media Invest, spol. s.r.o
between
Mr Jan Kovàčik
and
CME Slovak Holdings B.V., dated July 13, 2007
|
10.71
|
Agreement
on Consideration between Mr Jan Kovàčik
and
CME Slovak Holdings B.V., dated July 13, 2007
|
31.01
|
Sarbanes-Oxley
Certification s. 302 CEO, dated November 1, 2007
|
31.02
|
Sarbanes-Oxley
Certification s. 302 CFO, dated November 1, 2007
|
32.01
|
Sarbanes-Oxley
Certification – CEO and CFO, dated November 1, 2007 (furnished
only)
|
Date:
November 1, 2007
|
/s/
Michael Garin
|
Michael Garin | |
Chief Executive Officer | |
(Duly Authorized Officer) | |
Date:
November 1, 2007
|
/s/
Wallace Macmillan
|
Wallace Macmillan | |
Chief Financial Officer | |
(Principal Financial Officer and Accounting Officer) |
Subscription
Agreement between Central European Media Enterprises Ltd and Igor
Kolomoisky, dated August 24, 2007
|
|
Registration
Rights Agreement between Central European Media Enterprises Ltd and
Igor
Kolomoisky, dated as of August 24, 2007
|
|
Supplemental
Agreement Relating to the Loan Agreement dated 21 July, 2006 (as
amended
by an amending Letter Agreement dated 16 November, 2006) between
Central
European Media Enterprises Ltd and the European Bank for Reconstruction
and Development, dated August 22, 2007.
|
|
Loan
Agreement between Central European Media Enterprises Ltd and the
European
Bank for Reconstruction and Development, dated August 22,
2007.
|
|
Agreement
on Transfer of Participation Interest in Media Invest, spol. s.r.o
between
Mr Jan Kovàčik
and
CME Slovak Holdings B.V., dated July 13, 2007.
|
|
Agreement
on Consideration between Mr Jan Kovàčik
and
CME Slovak Holdings B.V., dated July 13, 2007.
|
|
Sarbanes-Oxley
Certification s. 302 CEO, dated November 1, 2007.
|
|
Sarbanes-Oxley
Certification s. 302 CFO, dated November 1, 2007.
|
|
Sarbanes-Oxley
Certification – CEO and CFO, dated November 1, 2007 (furnished
only).
|