Market Analysis

Net income

media company Central European Media Enterprises Ltd. (CME), owner of the Ukrainian TV Studio 1 1 and Cinema , for April-June 2009 amounted to $ 3.218 million, that in 9,6 times less than for the same period of 2008.

As reported in the quarterly report of the holding company and its negative EBITDA in Ukraine declined to 6.6 times and amounted to $ 16.086 million, while operating loss increased 5.3 times - up to $ 17.053 million

the first quarter of 2009, CME has ceased to share the figures for individual channels and shows them extremely from country to country.

In general, on the basis of half the net income the assets of CME in Ukraine decreased in 6.7 times - up to UAH 8.119 million, EBITDA declined to a negative $ 28.366 million (in 5,5 times), while operating loss increased to 4.5 fold - to $ 30.25 million

The presentation of quarterly reports linking the fall of SME financial indicators with the overall decline in television advertising market, in which the holding company expects recovery in the fourth quarter of 2009.

CME welcomes the imminent accession to the group of TET and plans to achieve leadership positions in the audience in prime time in 2011. Ukrainian assets of the holding company must reach a positive rate of EBITDA, according to expectations in 2012.

Holding during 2008 consolidated 100% 1 1, bought the minority interest share and Alexander Rodnyansky and Boris Fuksmana. In February 2009, holding also completed a deal to buy 10% stake in term of media-holding Glavred Media, has increased the share of the TV Film to 100% in exchange for 60.4% of its other assets - TV City and money.

As reported, SME announced achieved with the co-owner of PrivatBank (Kiev), Igor Kolomoyskim, one of the soaktsionerov Holding agreement on the sale of shares in 1 1. Under the treaty, I. Kolomoysky receives 49% of Ukrainian SME assets for $ 100 million in cash and 100% of TET, which will be integrated into the group 1 1. Transaction should be completed before the end of the third quarter of 2009.

investment of $ 100 million will be invested in the development of TV 1 1, Movies and TET. In the future, TET will be developed under the Multi-Channel Strategies SME aimed at creating a niche media channels.

In addition, the agreement led Kolomoysky I. option to buy 51% share of SME for $ 300 million in cash.
CME

Company owns several leading broadcasters in seven countries of Central and Eastern Europe. This - Bulgaria (Pro.bg and Ring.bg), Croatia (NovaTV), Czech Republic (TVNova, NovaCinema, NovaSportand, MTVCzech), Romania (PROTV, PROTVInternational, Acasa, PROCinema, Sport.rota, MTVRomania), Slovakia (TVMarkiza, Doma, NovaSport), Slovenia (POPTVta KanalA) and Ukraine (Studio 1 1, 1 1 International , Cinema , and 10% of media holding Glavred Media ).