Central European Media Enterprises announced its Q1 results yesterday. Net revenues for the three months ended March 31, 2013 were US$ 137.0 million compared to US$ 167.4 million for the same period in 2012. OIBDA1 for the three months ended March 31, 2013 was US$ (20.7) million compared to US$ 14.1 million for the first quarter in 2012.

Operating loss for the three months ended March 31, 2013 was US$ 35.0 million compared to US$ 10.3 million in 2012. Net loss for the quarter ended March 31, 2013 was US$ 109.0 million compared to US$ 13.8 million for the same period in 2012. Fully diluted loss per share for the three months ended March 31, 2013 was US$ 1.22 compared to US$ 0.21 for three months ended March 31, 2012.

CME plans to raise around $400 million gross, mostly from top shareholder Time Warner, to cut debt amid plunging advertising revenues. CME, which owns television channels in six central and eastern European markets, said on Monday it had started a public offering of shares to raise around $174 million gross and that Time Warner had committed to buying 49.9 percent of the class A stock to maintain its stake at that level.

CME said it also planned to sell around $200 million of class B preferred stock to Time Warner in a private placement.

CME, which said it made a net loss of $109 million in the first quarter, is struggling as weak local economies have blunted advertisers' willingness to spend and cash-strapped consumers have balked at its attempt to raise prices.

The broadcaster said revenue was likely to dip this year to $750-770 million from $772.1 million in 2012. Operating income before depreciation and amortization (OIBDA) was likely to fall to $100-120 million from $125.4 million, it added.

Time Warner bought a 31 percent stake in CME in 2009 and has gradually raised its holding in a company founded by billionaire Ronald Lauder in 1994. Last year it gave CME a cash injection.

CME Chief Executive Adrian Sarbu said the company would press ahead with price rises, such as double-digit percentage increases in the Czech Republic, its biggest market.

‘Our pricing actions in the Czech Republic and across our region will continue as we are determined to reverse the trend of declining TV advertising spending,’ he said.

CME's TV ad markets fell 12 percent in the first quarter, including an 18 percent drop in the Czech Republic.

In Romania, its second biggest market, revenues dropped with 30 million USD. In fact, Romania became the most-profitable market for CME in Q1 with revenues of 42 million USD vs. the 36 million in the Czech Republic where net revenues dropped sharply. In the CR CME’s ad share dropped from 67% to 47%.