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EARNINGS POLL-Broadcaster CME Q2 revenue likely down 35 percent

Published 07/27/2009, 11:12 AM
Updated 07/27/2009, 11:16 AM

*Central European Media Enterprises Q2

*Results due July 29

*EBITDA seen down 63 percent, revenue falling 35 percent

PRAGUE, July 27 (Reuters) - A slump in advertising spending in Central European Media Enterprises' (CME) main markets probably cut the broadcaster's second-quarter revenue by 35.2 percent, a Reuters poll of analysts showed on Monday.

Ten analysts gave an average estimate for revenue of $198 million in the three months to end-June, down from $305.4 million in the same period a year ago, with a stronger dollar against central Europe's battered currencies also weighing.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were expected to fall 62.9 percent to $44.3 million, according to the average of nine analyst estimates, as falling ad spending outpaced cost cutting.

CME operates television stations in seven central and eastern European countries, including the Czech Republic and Romania.

It reported its "toughest quarter" ever with a 37 percent revenue fall in the first three months of 2009, warning the ad slowdown would persist into next year due to the global economic downturn.

U.S. media group Time Warner completed a $241.5 million investment into the Bermuda-registered CME in May, taking a 31 percent stake.

The following is a summary of analysts' estimates for Q2 in the Reuters poll (in $ millions): Q2/09 Average Median Range Q2/08 Revenue 198.0 194.0 178.2-223.7 305.4 EBITDA 44.3 42.1 34.3-56.9 119.4 EBIT 28.7 27.0 17.9-41.0 98.0 Net profit (1.6) (11.1) (30.2)-61.2 67.6

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The following banks and equity houses took part in the poll: Atlantik FT, BH Securities, Cyrrus, Erste Bank/Ceska Sporitelna, JP Morgan, KBC Securities/Patria Finance, Komercni Banka, Thomas Weisel Partners, UniCredit, Wood & Co. (Reporting by Jan Korselt; Editing by Rupert Winchester)

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