Post on 04-Jun-2018
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Q3 2013Investor Presentation
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CAUTIONARY STATEMENT CONCERNING FORWARD LOOKINGSTATEMENTS AND NON GAAP FINANCIAL MEASURESThis presentation contains forward-looking statements, including those relating to our capital needs, business strategy, expectations and intentions.Statements that use the terms believe,anticipate,trend,expect,plan,estimate,forecast,intendand similar expressions of a future or forward-looking nature identify forward-looking statements for purposes of the U.S. federal securities laws or otherwise. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond ourcontrol and some of which might not even be anticipated. Forward-looking statements reflect our current views with respect to future events and because ourbusiness is subject to such risks and uncertainties, actual results, our strategic plan, our financial position, results of operations and cash flows could differmaterially from those described in or contemplated by the forward-looking statements contained in this report.
Important factors that contribute to such risks include, but are not limited to, those factors set forth under "Risk Factorsas well as the following: our ability toaccess external sources of capital in light of our current significant liquidity constraints and our poor financial performance; the impact of our efforts to increaseour revenues and recapture advertising market share in the Czech Republic; decreases in TV advertising spending and the rate of development of theadvertising markets in the countries in which we operate; the effect of the economic downturn and Eurozone instability in our markets and the extent andtiming of any recovery; our success in implementing our initiatives to diversify and enhance our revenue streams; the extent to which our debt serviceobligations restrict our business; our ability to make cost-effective investments in television broadcast operations, including investments in programming; our
ability to develop and acquire necessary programming and attract audiences; changes in the political and regulatory environments where we operate andapplication of relevant laws and regulations; and the timely renewal of broadcasting licenses and our ability to obtain additional frequencies and licenses.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that areincluded in our filings. For a more detailed description of these uncertainties and other features, please see the RiskFactorssection in our most recentQuarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on when theywere made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, futuredevelopments or otherwise.
Non-GAAP Financial Measures
CME reports its results in accordance with generally accepted accounting principles in the United States (GAAP). However, management believes thatcertain non-GAAP performance measures used in managing the business may provide meaningful information about underlying trends in our business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, CMEsreported results prepared in accordance with GAAP. Pleasesee the attached Financial Review appendix for a reconciliation to the most directly comparable GAAP financial measures. OIBDA, which includes programrights amortization costs, is determined as operating income before depreciation, amortization of intangible assets and impairment of assets.
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CME is a Leading Television Broadcaster in CEE
Czech RepublicPopulation: 10.6m
GDP/Capita: $18,884
Slovak Republic
Population: 5.5m
GDP/Capita: $17,149
RomaniaPopulation: 20.3mGDP/Capita: $8,739
BulgariaPopulation: 7.3mGDP/Capita: $7,023
Slovenia
Population: 2.0mGDP/Capita: $22,829
Croatia
Population: 4.3mGDP/Capita: $13,565
CME markets
CzechRepublic$349m
Romania$188m
SlovakRepublic$134m
Bulgaria$108m
Slovenia$76m
Croatia$98m
Combined population: approx. 50mCombined TV ad market size: approx. $953m
TV ad market size by geography
Source: IMF (2012)
Source: 2012 CME estimates
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Executive Summary
Managements priorities:- Improve advertising revenues, especially in the
Czech Republic
- Diversify revenues by increasing carriage fees- Reduce the cost base of the business
- Sharpen our focus on broadcast operations ineach country
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Q3 Performance Overview
37.4
27.131.4
21.7
31.638.9
32.728.4
36.1
25.0
35.1 37.0
0
10
20
30
40
50
Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia
Q3 All Day Audience Share
2012 2013
Source: Local TV data provider; all shares in main channel sales target group
-4.7
+1.3
+4.7
+3.3
+3.5 -1.9
41.5
31.036.2
26.5
33.5
47.0
37.133.9
41.0
30.1
38.143.7
0
10
20
30
40
50
Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia
Q3 Prime Time Audience Share
2012 2013
-4.4
+2.9+4.8
+3.6
+4.6
-3.3
Variance in percentage points
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YTD Performance Overview
Source: Local TV data provider; all shares in main channel sales target group. YTD represents average for JanuarySeptember.
Variance in percentage points
40.1
27.5
33.5
23.5
32.3
40.8
33.628.2
35.8
25.4
33.637.2
0
10
20
30
40
50
Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia
YTD All Day Audience Share
2012 2013
-6.5
+0.7
+2.3
+1.9
+1.3-3.6
46.2
33.338.1
29.335.3
49.4
38.434.3
41.1
31.336.2
45.6
0
10
20
30
40
50
Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia
YTD Prime Time Audience Share
2012 2013
-7.8
+1.0+3.0
+2.0+0.9
-3.8
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Historically High Power Ratios
0%
20%
40%
60%
80%
100%
Sl ov en ia Sl ova kRepublic
CzechRepublic
Romania Croatia Bulgaria
2.4x
2012 All Day Audience Share and MarketShare
0%
20%
40%
60%
80%
100%
Slo ve ni a Sl ov akRepublic
CzechRepublic
Romania Croatia Bulgaria
Audienceshare
Market sharePower ratio = /
2013 Year-to-Date All DayAudience Shareand Market Share
2x
Sources: TNS and GARB (Bulgaria), ATO Mediaresearch (Czech Republic), AGB Nielsen Media Research (Croatia), Kantar Media (Romania), PMT TNS (Slovak Republic) andAGB Nielsen Media Research (Slovenia) for audience share; CME estimates for market share. Year-to-date represents January-September.
Our strong content and leadership positions enable us to generate more revenues from TVadvertising
Power ratio indicates a companys ability to convert ratings to revenue
2012 Year-to-Date All DayAudience Share andMarket Share
0%
20%
40%
60%
80%
100%
Slo ven ia Sl ova kRepublic
CzechRepublic
Romania Croatia Bulgaria
1.9x
1.8x
1.9x
2.5x
1.8x
1.8x2.0x
2.0x 2.1x
1.8x
1.3x1.9x
2.0x
2.0x
2.6x
1.9x
1.6x
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Increasing Carriage Fees
Increases in carriage fee revenues reflects the strength of our channels.
Geographical split of carriage fees and subscription revenues
We concluded key carriage fees deals in Bulgaria and Romania in 2013.
The negotiations with the remaining cable and satellite operators in Romania are taking longer than
expected so increases in 2013 may be lower than previously estimated.
Negotiations of carriage fees for our main channel in the Czech Republic are unlikely to be concluded
before the end of 2013.
5
1
8
15
0
2
11
1
8
17
12
0
5
10
15
20
B ulgaria Croatia Czec h
Republic
Roman ia Slovak
Republic
Slovenia
Nine months 2012 and 2013
Total 9M 2012: US$ 31.8 Total 9M 2013: US$ 41.5
(US$ m)
8
1
11
20
1
3
0
5
10
15
20
25
B ulg ar ia Cr oa tia C zec h
Republic
Roman ia Slovak
republic
Slovenia
Full year 2012
Total: US$ 43.4
(US$ m)
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Reducing Costs through Reduction of Headcount
Czech Republic
From January 1, 2013, we manage our
business on a geographical basis with
six operating segments: Bulgaria,
Croatia, the Czech Republic, Romania,
the Slovak Republic and Slovenia.
The restructuring activities that will
primarily streamline central and
divisional resources are expected to be
completed by year-end.
Geographic segments
The restructuring is expected to bring annual cash savings of approximately US$ 30 million compared to2012 once complete.
Slovak Republic
Slovenia
Croatia
Romania
Bulgaria
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Liquidity Needs
Components of free cash flow
US$ m
Nine months 2012 Nine months 2013 Variance
OIBDA 65 (46) (111)
Change in working capital 25 76 51
Net investment in programming (61) 4 65
Interest, taxes, and other (86) (90) (4)
Capex (21) (21) (0)
Total (78) (77) 1
Full year 2012
125
(6)
(45)
(104)
(32)
(62)
As of October 30, 2013; not a reaffirmation of guidance.
Expected 2013 Free Cash Flow: approximately US$ (140) million
Expected December 31, 2013 Cash Balance: approximately US$ 60 million
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1
Questions andAnswers
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What are the macro economic trends?
Bulgaria
Real GDP* Real Private Consumption*
Real GDP*
Real GDP*
Real Private Consumption*
Real Private Consumption*
Croatia
CzechRepublic
TV Ad Market *
TV Ad Market *
TV Ad Market *
(2)% (1)%
(3)%
(1)%(1)%
Q3 Q4 Q1 Q2 Q3(3)% (3)%
(2)%(0)% (1)%
Q3 Q4 Q1 Q2 Q3
(7)%(4)%
(18)%
(10)%
(4)%
Q3 Q4 Q1 Q2 Q3
2012 2013 2012 2013
1% 1% 0% 0%0%
Q3 Q4 Q1 Q2 Q3
(3)%
(12)% (13)%
1%(2)%
Q3 Q4 Q1 Q2 Q3
(2)%(2)%
(2)%(1)% (1)%
Q3 Q4 Q1 Q2 Q3
2012 2013
(4)%(4)%
(3)%
1%(1)%
Q3 Q4 Q1 Q2 Q3
(9)% (9)%
(6)% (3)% (3)%
Q3 Q4 Q1 Q2 Q2
2012 2013
2012 2013 2012 2013
2012 2013 2012 2013 2012 2013
* Year-on-year percentage change. Sources: Real GDP & Real Private Consumption: Eurostat, Q3 2013 CME estimates. .TV Ad Market: CME internal estimates at constant currency exchange rates.
1% 0% 1% (0)% 1%
Q3 Q4 Q1 Q2 Q3
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What are the macro economic trends?
Romania
Real GDP* Real Private Consumption*
2012 2013
Real GDP*
Real GDP*
Real Private Consumption*
Real Private Consumption*
Slovakia
Slovenia
TV Ad Market *
TV Ad Market *
TV Ad Market *
(1)%
1%
2%2% 2%
Q3 Q4 Q1 Q2 Q3(1)%
1% (0)%
(0)%0%
Q3 Q4 Q1 Q2 Q3
(6)%
(3)%
(7)%
(2)%
5%
Q3 Q4 Q1 Q2 Q3
(3)% (3)%
(5)%
(2)% (2)%
Q3 Q4 Q1 Q2 Q3
(4)%
(6)% (5)%
(2)% (2)%
Q3 Q4 Q1 Q2 Q3
(14)%(10)%(10)%(11)%
1%
Q3 Q4 Q1 Q2 Q3
2%
1% 1% 1% 1%
Q3 Q4 Q1 Q2 Q3
(1)% (1)% (1)%
2%1%
Q3 Q4 Q1 Q2 Q3
(7)%
2%
(7)% (4)%(10)%
Q3 Q4 Q1 Q2 Q3
2012 20132012 2013
2012 2013 2012 2013 2012 2013
2012 20132012 20132012 2013
* Year-on-year percentage change. Sources: Real GDP & Real Private Consumption: Eurostat, Q3 2013 CME estimates. .TV Ad Market: CME internal estimates at constant currency exchange rates.
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What is your multichannel philosophy?
1Nova Sport (CZ) and MTV (CZ) are also broadcast in the Slovak Republic .
49 357
Main general
entertainmentTV channels
6 5 4
Other thematic
TV channels
7
28
SKROCZ BG SLO CRO
1
1
1
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What is the leading advertising medium in your markets?
47% 49% 50% 49% 50% 52%53%
5% 6% 7% 9%10% 11%
13%
32% 29% 26% 23%22% 20%
19%
16% 16% 17% 19% 18% 17% 15%
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010 2011 2012
Other
Internet
TV
Split of advertising expenditure among different media in CME markets
Source: Group M, December 2012.
TV continues to have the broadest reach and capture the highest share of advertisingbudgets in our markets.
1
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$69.9$59.2
$42.8 $47.3
$24.4$14.1
$35.4
$379.0
0
50
100
150
200
250
300
350
400
CzechRepublic
Slovenia Croatia SlovakRepublic
Bulgaria Romania CME average Developedmarketsaverage
There is significant room for convergence in our markets
What is the convergence potential of CMEs markets
Source: IMF, Group M and CME estimates.Developed markets are Austria, France, Germany, Spain, the UK and the US.
US$Total ad spend per capita 2012
1
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How is television distributed in CMEs markets
1Eurostat 2012. 2 CME estimates for the penetration of the primary source of viewing of TV households for 2012/ 2013 based on country data available.
Multichannel penetration is increasing as new technologies develop
Households1Penetration 20132
DTT DTH Cable IPTV
Bulgaria 2.8 million - 38% 43% 3%
Croatia 1.7 million 60% 6% 10% 24%
CzechRepublic
4.5 million 51% 26% 20% 2%
Romania 7.4 million - 23% 73% -
Slovak
Republic1.8 million 9% 47% 35% 9%
Slovenia 0.8 million 16% 4% 41% 39%
1
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1
Segment Review
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Q3 2013 Financials
Czech Republic: performance in Q3 2013
USDmQ3
2012Q3
2013% Act % Lfl
TV advertising revenues 40.0 31.0 (23)% (24)%
Carriage fees &subscription revenues
2.8 2.7 (2)% (4)%
Other revenues 8.8 5.7 (35)% (37)%
Net revenues 51.6 39.4 (24)% (26)%
Total costs 40.4 43.2 7% 4%
OIBDA 11.2 (3.8) Nm Nm
1 Number not meaningfulSource: TV ad market share represents CMEs share of the TV advertising revenues
1
Q3 All Day Audience Share Q3 Prime Time Audience Share
36.2
41.0
32
34
36
38
40
42 +4.8
TV Ad Market Share66% 65% 64%
47% 44%
Q2 Q3 Q4 Q1 Q2
TV Ad Market Share
65% 64%
47% 44%51%
Q3 Q4 Q1 Q2 Q3
2012 2013
Q3 2013 TV Ad Market Share (%)
CMEGroup51%
PrimaGroup35%
CTGroup
5%
Others9%
Audience Share
Market Share
31.4
36.1
28
30
32
34
36
38
2012 2013
+4.7
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TV Ad Market Share
58% 58%65% 60% 61%
Q3 Q4 Q1 Q2 Q3
Romania: performance in Q3 2013Q3 2013 Financials
2012 2013
USDmQ3
2012Q3
2013% Act % Lfl
TV advertising revenues 19.4 23.0 19% 11%
Carriage fees &subscription revenues
4.8 6.8 42% 32%
Other revenues 15.6 16.0 2% (5)%
Net revenues 39.8 45.8 15% 7%
Total costs 35.9 49.5 38% 28%
OIBDA 3.9 (3.7) Nm Nm
2
1 Number not meaningfulSource: TV ad market share represents CMEs share of the TV advertising revenues
Q3 2013 TV Ad Market Share (%)
CMEGroup61%
IntactGroup24%
PrimaGroup
4%
Kanal D6%
Others4%
Market Share
Audience Share
Q3 Prime Time Audience ShareQ3 All Day Audience Share
26.5
30.1
24
25
26
27
28
29
30
31
21.7
25.0
20
21
22
23
24
25
26
2012 2013
+3.3 +3.6
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Q3 2013 Financials
Slovak Republic: performance in Q3 2013
TV Ad Market Share
65% 66% 62% 63% 60%
Q3 Q4 Q1 Q2 Q3
2012 2013
USDmQ3
2012Q3
2013% Act % Lfl
TV advertising revenues 14.4 12.5 (14)% (18)%
Carriage fees &subscription revenues
0.2 0.3 64% 54%
Other revenues 3.0 0.5 (82)% (83)%
Net revenues 17.6 13.3 (25)% (29)%
Total costs 20.7 19.4 (6)% (12)%
OIBDA (3.1) (6.1) (99)% (85)%
2
Q3 2013 TV Ad Market Share (%)
CMEGroup60%
JOJGroup40%
STVGroup
0%
Q3 Prime Time Audience ShareQ3 All Day Audience Share
33.5
38.1
30
32
34
36
38
40
Market Share
31.6
35.1
29
30
31
32
33
34
35
36
2012 2013
Audience Share
Source: TV ad market share represents CMEs share of the TV advertising revenues
+3.5 +4.6
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Bulgaria: performance in Q3 2013Q3 2013 Financials
TV Ad Market Share
2012 2013
66%71%
56%61% 63%
Q3 Q4 Q1 Q2 Q3
USDmQ3
2012Q3
2013% Act % Lfl
TV advertising revenues 12.3 12.2 (1)% (6)%
Carriage fees &subscription revenues
1.9 4.1 113% 101%
Other revenues 0.9 1.6 75% 66%
Net revenues 15.1 17.9 19% 12%
Total costs 14.6 16.3 12% 6%
OIBDA 0.5 1.6 Nm Nm
2
1 Number not meaningfulSource: TV ad market share represents CMEs share of the TV advertising revenues
Q3 2013 TV Ad Market Share (%)
CMEGroup63%
MTG
Group32%
BNTGroup
3%
Others1%
Market Share
Audience Share
41.5
37.1
34
35
36
37
38
39
40
41
42
37.4
32.7
30
32
34
36
38
2012 2013
Q3 All Day Audience Share Q3 Prime Time Audience Share
-4.7-4.4
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TV Ad Market Share
76% 81% 79% 77% 74%
Q3 Q4 Q1 Q2 Q3
2012 2013
Slovenia: performance in Q3 2013Q3 2013 Financials
USDmQ3
2012
Q3
2013
% Act % Lfl
TV advertising revenues 8.3 8.6 3% (2)%
Carriage fees &subscription revenues
1.0 0.8 (12)% (16)%
Other revenues 0.7 0.8 5% (1)%
Net revenues 10.0 10.2 2% (3)%
Total costs 11.6 14.2 (22)% (16)%
OIBDA (1.6) (4.0) (149)% (132)%
2
Q3 2013 TV Ad Market Share (%)
CMEGroup74%
PlanetTV
4%
RTVGroup18%
Others3%
47.0
43.7
42
43
44
45
46
47
48
38.9
37.0
36
36.5
37
37.5
38
38.5
39
39.5
2012 2013
Market Share
Q3 All Day Audience ShareQ3 Prime Time Audience Share
Audience Share
Source: TV ad market share represents CMEs share of the TV advertising revenues
-1.9-3.3
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TV Ad Market Share
52% 53% 54% 53%57%
Q3 Q4 Q1 Q2 Q3
Croatia: performance in Q3 2013Q3 2013 Financials
2012 2013
USDmQ3
2012
Q3
2013
% Act % Lfl
TV advertising revenues 8.6 9.5 11% 6%
Carriage fees &subscription revenues
0.2 0.4 57% 49%
Other revenues 1.0 1.0 0% (5)%
Net revenues 9.8 10.9 11% 6%
Total costs 10.5 10.9 4% (2)%
OIBDA (0.7) 0.0 Nm Nm
1 Number not meaningfulSource: TV ad market share represents CMEs share of the TV advertising revenues
2
Q3 2013 TV Ad Market Share (%)
CMEGroup57%
RTL
Group38%
HTVGroup
5%
31.0
33.9
29
30
31
32
33
34
35
27.1
28.4
26
26.5
27
27.5
28
28.5
20 12 2 013
Audience Share
Q3 Prime Time Audience ShareQ3 All Day Audience Share
Market Share
+1.3 +2.9
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2
Financial Review
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2
Q3 2013 CME Revenues by Segment
1 Like-for-Like currency growth reflects the impact of applying the current period average exchange rates to the prior period revenues.
2 Number is not meaningful.
US$ M
Net Revenues
Variance
Q3 2012 Q3 2013 Actual % Lf l %1
Bulgaria 15.1 17.9 19% 12%
Croatia 9.8 10.9 11% 6%
Czech Republic 51.6 39.4 (24)% (26)%
Romania 39.8 45.7 15% 7%
Slovak Republic 17.6 13.3 (25)% (29)%
Slovenia 10 10.2 2% (3)%
Intersegment revenues (3.8) (1.6) Nm Nm
Total net revenues 140.1 135.8 (3)% (8)%
The percentage growth figures have been derived from data included in our Form 10-Q for the period ended September 30, 2013.
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2
US$ m
OIBDA
Variat ions
Q3 2012 Q3 2013 Actual % Lf l %1
Bulgaria 0.5 1.6 Nm Nm
Croatia (0.7) 0.0 Nm Nm
Czech Republic 11.2 (3.8) Nm Nm
Romania 3.9 (3.7) Nm Nm
Slovak Republic (3.1) (6.1) (99)% (85)%
Slovenia (1.6) (4.0) (149)% (132)%
Eliminations (0.2) (0.1) Nm Nm
Operations sub-total 10.0 (16.1) Nm Nm
Central costs (6.5) (16.3) (150)% (141)%
Total 3.5 (32.4) Nm Nm
The percentage growth figures have been derived from data included in our Form 10-Q for the period ended September 30, 2013.
1 Like-for-Like currency growth reflects the impact of applying the current period average exchange rates to the prior period revenues and costs.
2 Number is not meaningful.
Summary Consolidated Statements of Operations
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2
US$ m
Three months endedSeptember 30,
Nine months endedSeptember 30,
2012 2013 2012 2013
Net revenues 140.1 135.8 518.7 453.1
Content costs 75.6 90.7 252.3 277.0
Other operating costs 33.3 34.2 101.1 104.6
Depreciation and amortization 21.9 12.5 69.8 39.6
Selling, general and administrative costs 27.7 39.2 100.6 108.7
Restructuring costs - 4.2 - 8.8
Operating loss (18.4) (45.0) (5.1) (85.6)
Net interest expense (32.3) (23.8) (94.8) (86.6)Gain / (loss) on extinguishment of debt - - 0.4 (23.1)
Foreign currency gain / (loss), net 16.8 43.8 (0.2) 9.0
Change in FV of derivatives 0.6 - 48.9 0.1
Other income / (expense) 0.1 (0.3) 0.2 (0.8)
Income tax credit 0.6 2.0 7.3 13.7
Net loss (32.6) (23.3) (43.3) (173.3)
Net loss attributable to noncontrolling interests 0.6 0.2 1.8 1.0
Net loss attributable to CME Ltd. (32.0) (23.1) (41.5) (172.3)
Net loss per share (0.36) (0.16) (0.57) (1.45)
Please refer to our Form 10-Q for the period ended September 30, 2013 for the full financial statements and related notes and disclosures.
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Summary Consolidated Statements of Operations
US$ m
Year endedDecember 31,
2012 2011
Net revenues 772.1 864.8
Cost of programming 377.9 399.8
Operating costs 175.2 182.1
Depreciation and amortization 88.4 87.9
Selling, general and administrative expenses 96.3 119.6
Impairment charge 522.5 68.7
Operating (loss) / income (488.2) 6.8
Net interest expense (127.1) (158.7)
Foreign currency exchange gain / (loss) 4.9 (31.1)
Change in FV of derivatives 49.0 7.3
Other income 0.9 -
Income tax credit / (provision) 14.1 (3.9)
Net loss (546.4) (179.6)
Net loss attributable to noncontrolling interests 10.7 5.0
Net loss attributable to CME Ltd. (535.7) (174.6)
Loss per share (6.96) (2.71)
Please refer to our Form 10-K for the period ended December 31, 2012 for the full financial statements and related notes and disclosures.
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Q3 2013 CME Consolidated Revenues by Type
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US$ m
Three months endedSeptember 30,
Nine months endedSeptember 30,
2012 2013 2012 2013
TV advertising revenues 103.0 96.8 407.4 339.9
Carriage fees & subscription revenues 10.9 15.2 31.8 41.9
Other revenues 26.2 23.8 79.5 71.3
Net revenues 140.1 135.8 518.7 453.1
Please refer to our Form 10-Q for the period September 30, 2013 for the full financial statements and related notes and disclosures.
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Summary Consolidated Balance Sheet
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US$ m
As atDecember 31,
As atSeptember 30,
2012 2013
Current assets 518.6 457.0
Non-current assets 1,656.1 1,662.7
Total assets 2,174.7 2,119.7
Current liabilities 291.4 313.3
Non-current liabilities 1,252.1 1,002.2
Total liabilities 1,543.5 1,315.5
Series B Convertible Redeemable Preferred Stock - 204.0
CME Ltd. shareholders' equity 626.1 596.2
Noncontrolling interests 5.1 3.9
Total liabilities and equity 2,174.7 2,119.7
Cash & cash equivalents
140.4 122.9Gross debt1 (1,217.6) (962.4)
Net debt (1,077.2) (839.5)
Please refer to our Form 10-Q for the period ended September 30, 2013 for the full financial statements and related notes and disclosures.1Gross debt as at September 30, 2013 shown is the full face value of all outstanding debt, which was US$ 14.3 million greater than the accounting value as at September 30, 2013. Gross debt asat December 31, 2012 shown is the full face value of all outstanding debt, which was US$ 17.1 million greater than the accounting value as at December 31, 2012.
Summary Cash Flow
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Nine months ended September 30,
US$ m 2012 2013
Net cash used in operating activities (56.9) (56.5)
Net cash used in investing activities (21.1) (20.7)
Net cash provided by financing activities 14.6 60.1
Impact of exchange rate fluctuations 2.7 (0.4)
Net decrease in cash and cash equivalents (60.7) (17.5)
Net cash used in operating activities (56.9) (56.5)
Capex additions, net of disposals (21.1) (20.7)
Free cash flow (78.0) (77.1)
Supplemental disclosure of cash flow information
Cash paid for interest (83.9) (87.2)
Cash paid for income taxes, net of refunds (5.9) (6.1)
Please refer to our Form 10-Q for the period ended September 30, 2013 for the full financial statements and related notes and disclosures.
Debt Maturity Profile
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3
261
369
324
0
200
400
600
2013 2014 2015 2016 2017
US$ m
Maturity profile as at September 30, 2013
Senior debt US$ 954 m
2016 Fixed Rate Notes 2017 Fixed Rate Notes2015 Convertible Notes
Indebtedness as at September 30, 2013
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As at September 30, 20131 Drawn Total facility LC Interestrate
Maturity
US$ m US$ m LC2millions
Corporate:
2015 Convertible Notes 261.0 261.0 261.0 USD 5.0% Nov 2015
2016 Fixed Rate Notes 368.6 368.6 273.0 EUR 11.63% Sep 2016
Station level:
Czech Republic2017 Fixed Rate Notes 324.1 324.1 240.0 EUR 9.0% Nov 2017
Other 5.0 5.0 Var. Var. Var.
Total debt3 958.7 958.7
Lease obligations 3.7
Total debt (consolidated)3 962.4
Less: Unrestricted cash (122.9)
Net debt 839.5
Weighted average interest rate of gross debt 8.92%1 Debt in currencies other than US$ are translated at FX rates as at September 30, 2013.2LC: local currency.3Total debt includes 2015 Convertible Notes, 2016 Fixed Rate Notes and 2017 Fixed Rate Notes at full face value, which was $14.3 million greater than the accounting value as at September 30,2013.
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Equity structure as at September 30, 2013
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Shares of Class ACommon Stock
Series AConvertible
Preferred Share1
Series BConvertibleRedeemable
Preferred Shares2
Ownership % ofShares of Class A
Common Stock
Voting interest3
Shares outstanding, excluding TimeWarner
73,081,410 - 54.3% 50.2%
Time Warner 61,407,775 1 200,000 45.7% 49.8%3
Total 134,489,185 1 200,000 100.0% 100.0%
1 The single share of Series A Convertible Preferred Stock is convertible into 11,211,449 shares of Class A common stock.
2The shares of Series B Convertible Redeemable Preferred Stock are non-voting perpetual stock, convertible after three years at the option of Time Warner at a conversion price of US$ 3.1625and redeemable after three years at the option of CME. The accretion rate is 7.5% for the first 3 years and 3.75% for the 4th and 5th year. Assuming conversion three years from issuance and noadjustments to the conversion price, Time Warner would be issued 79.0 million shares of Class A common stock upon conversion.
3Voting interest takes into account both the shares of Class A common stock and the share of Series A Convertible Preferred Stock, which is entitled to one vote for each of the 11,211,449 sharesof Class A common stock into which it is convertible. The Series B Convertible Redeemable Preferred Shares are non-voting, except in certain circumstances.
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OIBDA Reconciliation
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Please refer to our Form 10-Q for the period ended September 30, 2013 for the full financial statements and related notes and disclosures.
US$ m Three months endedSeptember 30,
Nine months endedSeptember 30,
2012 2013 2012 2013
Reconciliation to Consolidated Statements of Operations:
Operating loss (18.4) (45) (5.1) (85.6)
Depreciation of property, plant and equipment 11.7 8.6 34.4 27.8
Amortization of intangible assets 10.2 3.9 35.4 11.8
OIBDA 3.5 (32.4) 64.7 (46)
Contact information
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Prague Office
Keneckho nm. 1078/5152 00 Prague 5BarrandovCzech Republic
Mark Kobal
Head of Investor Relations
Email: mark.kobal@cme.net Telephone: +420 242 465 576
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