Central European Media Enterprises Ltd. (CME) today announced financial results for the three and nine months ended September 30, 2017.

“Following the previously announced sale of our Croatia and Slovenia operations, these businesses are classified as held for sale and presented as discontinued operations for all periods. The discussion in this release relates to our continuing operations in the four remaining operating segments.”

Third quarter operational and financial highlights:

TV advertising revenues increased 10% at actual rates and 4% at constant rates.
Carriage fees and subscription revenues increased 20% at actual rates and 15% at constant rates.
OIBDA increased 30% at actual rates and 24% at constant rates, resulting in OIBDA margin expansion to 21% from 18%.
The increase in OIBDA improved operating income 40% at actual rates and 35% at constant rates.
Unlevered free cash flow for the nine months ended September 30, 2017 increased 14%.
Proceeds from the sale of our operations in Croatia and Slovenia, which is expected to close by the end of 2017 or early 2018, will be used to repay debt and this is expected to decrease our current cost of borrowing by an additional 150 basis points to 4.5%.

Michael Del Nin, Co-Chief Executive Officer, commented: "Our strong momentum from the first half of 2017 continued through the third quarter, positioning us very well as we head into the final months of the year, and providing a very solid base as we look to grow further in 2018. As a result of strong gains in OIBDA and unlevered free cash flow, we are able to raise our guidance for the full year, and with our net leverage ratio now below 6x, we will see our average borrowing cost decline by 125 basis points to 6.0%, its lowest level in eight years."

Christoph Mainusch, Co-Chief Executive Officer, added: "Our operations posted very strong results through the summer, culminating in one of the most successful launches to our fall season and contributing to higher audience shares so far this year in three out of four territories. We are investing in content because audiences continue to demand high quality local productions, but have mostly offset that with other savings to improve profitability."

Full details: http://www.cetv-net.com/company-news/press-releases/press-release-details/2017/Central-European-Media-Enterprises-Ltd-Reports-Results-for-the-Third-Quarter-and-Nine-Months-Ended-September-30-2017/default.aspx