BERMUDA
|
98-0438382
|
(State
or other jurisdiction of incorporation and organization)
|
(IRS
Employer Identification No.)
|
Clarendon
House, Church Street, Hamilton
|
HM
11 Bermuda
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer T
|
Accelerated
filer £
|
Non-accelerated
filer £
|
Smaller
reporting company £
|
Class
|
Outstanding as of October 24,
2008
|
Class
A Common Stock, par value $0.08
|
36,024,273
|
Class
B Common Stock, par value $0.08
|
6,312,839
|
Page
|
|
Part
I. Financial information
|
|
2
|
|
2
|
|
4
|
|
6
|
|
7
|
|
8
|
|
49
|
|
99
|
|
100
|
|
Part
II. Other Information
|
101
|
101
|
|
101
|
|
109
|
|
110
|
|
111
|
September
30,
2008
|
December
31,
2007
|
|||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 225,636 | $ | 142,826 | ||||
Accounts
receivable (net of allowance) (Note 6)
|
178,111 | 225,037 | ||||||
Program
rights, net
|
81,417 | 77,112 | ||||||
Other
current assets (Note 7)
|
112,938 | 84,849 | ||||||
Total
current assets
|
598,102 | 529,824 | ||||||
Non-current
assets
|
||||||||
Investments
|
16,559 | 16,559 | ||||||
Property,
plant and equipment, net (Note 8)
|
215,349 | 180,311 | ||||||
Program
rights, net
|
123,865 | 108,362 | ||||||
Goodwill
(Note 4)
|
1,446,893 | 1,114,347 | ||||||
Broadcast
licenses and other intangible assets, net (Note 4)
|
563,511 | 373,658 | ||||||
Other
non-current assets (Note 7)
|
22,667 | 15,374 | ||||||
Total
non-current assets
|
2,388,844 | 1,808,611 | ||||||
Total
assets
|
$ | 2,986,946 | $ | 2,338,435 |
September
30,
2008
|
December
31,
2007
|
|||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable and accrued liabilities (Note 9)
|
$ | 180,636 | $ | 203,528 | ||||
Credit
facilities and obligations under capital leases (Note 10)
|
19,217 | 15,090 | ||||||
Other
current liabilities (Note 11)
|
43,552 | 14,152 | ||||||
Total
current liabilities
|
243,405 | 232,770 | ||||||
Non-current
liabilities
|
||||||||
Credit
facilities and obligations under capital leases (Note 10)
|
6,259 | 5,862 | ||||||
Senior Debt
(Note 5)
|
1,039,969 | 581,479 | ||||||
Other
non-current liabilities (Note 11)
|
152,873 | 95,362 | ||||||
Total
non-current liabilities
|
1,199,101 | 682,703 | ||||||
Commitments
and contingencies (Note 18)
|
||||||||
Minority
interests in consolidated subsidiaries
|
98,296 | 23,155 | ||||||
SHAREHOLDERS'
EQUITY:
|
||||||||
Nil
shares of Preferred Stock of $0.08 each (December 31, 2007 –
nil)
|
- | - | ||||||
36,024,273
shares of Class A Common Stock of $0.08 each (December 31, 2007 –
36,003,198)
|
2,882 | 2,880 | ||||||
6,312,839
shares of Class B Common Stock of $0.08 each (December 31, 2007 –
6,312,839)
|
505 | 505 | ||||||
Additional
paid-in capital
|
1,017,360 | 1,051,336 | ||||||
Retained
earnings
|
66,301 | 53,619 | ||||||
Accumulated
other comprehensive income
|
359,096 | 291,467 | ||||||
Total
shareholders’ equity
|
1,446,144 | 1,399,807 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 2,986,946 | $ | 2,338,435 |
For
the Three Months Ended
September
30,
|
For
the Nine Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
revenues
|
$ | 201,009 | $ | 174,836 | $ | 729,870 | $ | 539,032 | ||||||||
Operating
costs
|
38,727 | 27,166 | 109,034 | 83,767 | ||||||||||||
Cost
of programming
|
97,042 | 65,909 | 309,405 | 215,035 | ||||||||||||
Depreciation
of station property, plant and equipment
|
14,227 | 8,768 | 39,745 | 23,347 | ||||||||||||
Amortization
of broadcast licenses and other intangibles (Note 4)
|
10,201 | 6,595 | 26,055 | 16,922 | ||||||||||||
Cost
of revenues
|
160,197 | 108,438 | 484,239 | 339,071 | ||||||||||||
Station
selling, general and administrative expenses
|
22,783 | 17,609 | 61,204 | 49,089 | ||||||||||||
Corporate
operating costs
|
11,902 | 20,396 | 35,627 | 42,613 | ||||||||||||
Operating
income
|
6,127 | 28,393 | 148,800 | 108,259 | ||||||||||||
Interest
income
|
2,127 | 1,180 | 8,088 | 4,326 | ||||||||||||
Interest
expense (Note 14)
|
(17,947 | ) | (11,883 | ) | (50,337 | ) | (42,717 | ) | ||||||||
Foreign
currency exchange gain / (loss), net
|
4,969 | (23,300 | ) | (5,580 | ) | (28,552 | ) | |||||||||
Change
in fair value of derivatives (Note 12)
|
9,868 | (8,555 | ) | (13,671 | ) | 3,497 | ||||||||||
Other
income / (expense)
|
290 | 44 | 1,615 | (746 | ) | |||||||||||
Income
/ (loss) before provision for income taxes and minority
interest
|
5,434 | (14,121 | ) | 88,915 | 44,067 | |||||||||||
Provision
for income taxes
|
(20,833 | ) | (131 | ) | (19,410 | ) | (18,609 | ) | ||||||||
(Loss)
/ income before minority interest
|
(15,399 | ) | (14,252 | ) | 69,505 | 25,458 | ||||||||||
Minority
interest in income or loss of consolidated subsidiaries
|
644 | (4,511 | ) | (1,761 | ) | (9,881 | ) | |||||||||
Net
(loss) / income
|
$ | (14,755 | ) | $ | (18,763 | ) | $ | 67,744 | $ | 15,577 | ||||||
Currency
translation adjustment, net
|
(217,905 | ) | 100,470 | 67,141 | 80,967 | |||||||||||
Obligation
to repurchase shares
|
- | - | 488 | - | ||||||||||||
Total
comprehensive income
|
$ | (232,660 | ) | $ | 81,707 | $ | 135,373 | $ | 96,544 |
For
the Three Months Ended
September
30,
|
For
the Nine Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
PER
SHARE DATA (Note 16):
|
||||||||||||||||
Net
income / (loss) per share:
|
||||||||||||||||
Net
income / (loss) – Basic
|
$ | (0.35 | ) | $ | (0.45 | ) | $ | 1.60 | $ | 0.38 | ||||||
Net
income / (loss) – Diluted
|
$ | (0.35 | ) | $ | (0.45 | ) | $ | 1.58 | $ | 0.37 | ||||||
Weighted
average common shares used in computing per share amounts
(000’s):
|
||||||||||||||||
Basic
|
42,335 | 41,489 | 42,324 | 41,077 | ||||||||||||
Diluted
|
42,335 | 41,489 | 42,773 | 41,553 |
Class
A Common Stock
|
Class
B Common Stock
|
|||||||||||||||||||||||||||||||
Number
of shares
|
Par
value
|
Number
of shares
|
Par
value
|
Additional
Paid-In Capital
|
Retained
Earnings
|
Accumulated
Other Comprehensive Income
|
Total
Shareholders' Equity
|
|||||||||||||||||||||||||
BALANCE,
December 31, 2007
|
36,003,198 | $ | 2,880 | 6,312,839 | $ | 505 | $ | 1,051,336 | $ | 53,619 | $ | 291,467 | $ | 1,399,807 | ||||||||||||||||||
Stock-based
compensation
|
- | - | - | - | 5,961 | - | - | 5,961 | ||||||||||||||||||||||||
Stock
options exercised
|
21,075 | 2 | - | - | 1,220 | - | - | 1,222 | ||||||||||||||||||||||||
Redeemable
Minority Interest (Note 18)
|
- | - | - | - | - | (32,901 | ) | - | (32,901 | ) | ||||||||||||||||||||||
Purchase
of capped call options (Note 5)
|
- | - | - | - | (63,318 | ) | - | - | (63,318 | ) | ||||||||||||||||||||||
Extinguishment
of capped call options (Note 5)
|
- | - | - | - | 22,161 | (22,161 | ) | - | - | |||||||||||||||||||||||
Net
income
|
- | - | - | - | - | 67,744 | - | 67,744 | ||||||||||||||||||||||||
Currency
translation adjustment
|
- | - | - | - | - | - | 67,141 | 67,141 | ||||||||||||||||||||||||
Obligation
to repurchase shares
|
- | - | - | - | - | - | 488 | 488 | ||||||||||||||||||||||||
BALANCE,
September 30, 2008
|
36,024,273 | $ | 2,882 | 6,312,839 | $ | 505 | $ | 1,017,360 | $ | 66,301 | $ | 359,096 | $ | 1,446,144 |
Class
A Common Stock
|
Class
B Common Stock
|
|||||||||||||||||||||||||||||||
Number
of shares
|
Par
value
|
Number
of shares
|
Par
value
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other Comprehensive Income / (Loss)
|
Total
Shareholders' Equity
|
|||||||||||||||||||||||||
BALANCE,
December 31, 2006
|
34,412,138 | $ | 2,753 | 6,312,839 | $ | 505 | $ | 931,108 | $ | (31,730 | ) | $ | 133,130 | $ | 1,035,766 | |||||||||||||||||
Impact
of adoption of FIN 48
|
- | - | - | - | - | (3,219 | ) | - | (3,219 | ) | ||||||||||||||||||||||
BALANCE,
upon the adoption of FIN 48
|
34,412,138 | $ | 2,753 | 6,312,839 | $ | 505 | $ | 931,108 | $ | (34,949 | ) | $ | 133,130 | $ | 1,032,547 | |||||||||||||||||
Stock-based
compensation
|
- | - | - | - | 4,610 | - | - | 4,610 | ||||||||||||||||||||||||
Shares
issued, net of fees
|
1,275,227 | 102 | - | - | 109,751 | - | - | 109,853 | ||||||||||||||||||||||||
Stock
options exercised
|
274,583 | 22 | - | - | 3,455 | - | - | 3,477 | ||||||||||||||||||||||||
Net
income
|
- | - | - | - | 15,577 | - | 15,577 | |||||||||||||||||||||||||
Currency
translation adjustment
|
- | - | - | - | - | 80,967 | 80,967 | |||||||||||||||||||||||||
BALANCE,
September 30, 2007
|
35,961,948 | $ | 2,877 | 6,312,839 | $ | 505 | $ | 1,048,924 | $ | (19,372 | ) | $ | 214,097 | $ | 1,247,031 |
For
the Nine Months Ended September 30,
|
||||||||
2008
|
2007
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income
|
$ | 67,744 | $ | 15,577 | ||||
Adjustments
to reconcile net income to net cash generated from operating
activities:
|
||||||||
Depreciation
and amortization
|
237,050 | 165,889 | ||||||
Profit
on disposal of fixed asset
|
(134 | ) | - | |||||
Stock-based
compensation (Note 15)
|
5,540 | 4,098 | ||||||
Minority
interest in income of consolidated subsidiaries
|
1,761 | 9,881 | ||||||
Change
in fair value of derivative instruments
|
13,671 | (3,497 | ) | |||||
Foreign
currency exchange loss, net
|
5,580 | 28,552 | ||||||
Net
change in (net of effects of acquisitions and disposals of
businesses):
|
||||||||
Accounts
receivable
|
43,562 | 11,616 | ||||||
Program
rights
|
(210,663 | ) | (170,610 | ) | ||||
Other
assets
|
(18,474 | ) | (7,430 | ) | ||||
Accounts
payable and accrued liabilities
|
49,412 | 27,319 | ||||||
Income
taxes payable
|
(22,480 | ) | 557 | |||||
Deferred
taxes
|
1,963 | 4,202 | ||||||
VAT
and other taxes payable
|
(3,567 | ) | 9,735 | |||||
Net
cash generated from continuing operating activities
|
170,965 | 95,889 | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase
of property, plant and equipment
|
(59,623 | ) | (46,277 | ) | ||||
Proceeds
from disposal of property, plant and equipment
|
302 | 123 | ||||||
Investments
in subsidiaries and unconsolidated affiliates
|
(401,768 | ) | (142,709 | ) | ||||
Repayment
of loans and advances to related parties
|
1,990 | 400 | ||||||
Net
cash used in continuing investing activities
|
(459,099 | ) | (188,463 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net
proceeds from issuance of Convertible Notes
|
463,595 | - | ||||||
Purchase
of capped call option
|
(63,318 | ) | - | |||||
Proceeds
from credit facilities
|
- | 177,515 | ||||||
Payment
of credit facilities and capital leases
|
(13,381 | ) | (182,391 | ) | ||||
Net
proceeds from issuance of Senior Notes
|
- | 199,400 | ||||||
Redemption
of Senior Notes
|
- | (169,010 | ) | |||||
Proceeds
from exercise of stock options
|
1,222 | 3,477 | ||||||
Issuance
of shares of Class A Common Stock
|
- | 109,853 | ||||||
Excess
tax benefits from share-based payment arrangements
|
421 | 512 | ||||||
Dividends
paid to minority shareholders
|
(2,460 | ) | (2,910 | ) | ||||
Net
cash received from continuing financing activities
|
386,079 | 136,446 | ||||||
NET
CASH USED IN DISCONTINUED OPERATIONS – OPERATING
ACTIVITIES
|
(1,973 | ) | (2,164 | ) | ||||
Impact
of exchange rate fluctuations on cash
|
(13,162 | ) | 4,957 | |||||
Net
increase in cash and cash equivalents
|
82,810 | 46,665 | ||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
142,826 | 145,904 | ||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ | 225,636 | $ | 192,569 |
Company
Name
|
Effective
Voting
Interest
|
Jurisdiction
of
Organization
|
Type
of Affiliate
|
Top
Tone Media S.A. (“Top Tone”)
|
80.0%
|
Luxembourg
|
Subsidiary
|
TV
2 EOOD (“TV2”)
|
80.0%
|
Bulgaria
|
Subsidiary
|
Top
Tone Media Bulgaria EOOD
|
80.0%
|
Bulgaria
|
Subsidiary
|
Asteos
EOOD
|
80.0%
|
Bulgaria
|
Subsidiary
|
Zopal
S.A. (“Zopal”)
|
80.0%
|
Luxembourg
|
Subsidiary
|
LG
Consult EOOD
|
80.0%
|
Bulgaria
|
Subsidiary
|
RING
SV AD (“Ring TV”)
|
80.0%
|
Bulgaria
|
Subsidiary
|
Nova
TV d.d. (“Nova TV (Croatia)”)
|
100.0%
|
Croatia
|
Subsidiary
|
Operativna
Kompanija d.o.o.
|
100.0%
|
Croatia
|
Subsidiary
|
Media
House d.o.o.
|
100.0%
|
Croatia
|
Subsidiary
|
Internet
Dnevnik d.o.o.
|
76.0%
|
Croatia
|
Subsidiary
|
CET
21 spol. s.r.o. (“CET 21”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
MEDIA
CAPITOL, a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
HARTIC
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
Galaxie
sport, s. r.o. (“Galaxie Sport”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
Jyxo,
s.r.o. (“Jyxo”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
BLOG
Internet, s.r.o. (“Blog“)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
CME
Romania B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
Media
Pro International S.A. (“MPI”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Vision S.R.L (“Media Vision”)
|
95.0%
|
Romania
|
Subsidiary
|
MPI
Romania B.V.
|
95.0%
|
Netherlands
|
Subsidiary
|
Music
Television System S.R.L. (“MTS”)
|
95.0%
|
Romania
|
Subsidiary
|
Pro
TV S.A. (“Pro TV”)
|
95.0%
|
Romania
|
Subsidiary
|
Sport
Radio TV Media S.R.L (“Sport.ro”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Pro Management S.A. (“Media Pro”)
|
8.7%
|
Romania
|
Cost
investment
|
Company
Name
|
Effective
Voting
Interest
|
Jurisdiction
of
Organization
|
Type
of Affiliate
|
Media
Pro B.V.
|
10.0%
|
Netherlands
|
Cost
investment
|
CME
Slovak Holdings B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
A.R.J.,
a.s.
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
Markiza-Slovakia
spol. s.r.o. (“Markiza”)
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
GAMATEX
spol. s. r.o.
|
100.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
A.D.A.M.
a.s.
|
100.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
Media
Invest, spol. s.r.o.
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
PMT,
s.r.o.
|
31.5%
|
Slovak
Republic
|
Cost
investment
|
MMTV
1 d.o.o.
|
100.0%
|
Slovenia
|
Subsidiary
|
Produkcija
Plus d.o.o. (“Pro Plus”)
|
100.0%
|
Slovenia
|
Subsidiary
|
POP
TV d.o.o. (“Pop TV”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Kanal
A d.o.o. (“Kanal A”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Euro
3 TV d.o.o.
|
42.0%
|
Slovenia
|
Equity-Accounted
Affiliate
|
Fit
& Fun d.o.o.
|
100.0%
|
Slovenia
|
Subsidiary
|
Televideo
d.o.o. (trading as TV Pika)
|
20.0%
|
Slovenia
|
Equity-Accounted
Affiliate
|
International
Media Services Ltd. (“IMS”)
|
90.0%
|
Bermuda
|
Subsidiary
|
CME
Ukraine Holding GmbH
|
100.0%
|
Austria
|
Subsidiary
|
Innova
Film GmbH (“Innova”)
|
83.4%
|
Germany
|
Subsidiary
|
CME
Cyprus Holding Ltd.
|
100.0%
|
Cyprus
|
Subsidiary
|
TV
Media Planet Ltd. (“TV Media Planet”)
|
90.0%
|
Cyprus
|
Subsidiary
|
1+1
Production
|
83.4%
|
Ukraine
|
Subsidiary
|
Studio
1+1 LLC (“Studio 1+1”)
|
90.0%
|
Ukraine
|
Subsidiary
|
Ukrainian
Media Services LLC (“UMS”)
|
99.9%
|
Ukraine
|
Subsidiary
|
Grizard
Investments Limited. (“Grizard”)
|
100.0%
|
Cyprus
|
Subsidiary
|
CME
Ukraine Holding B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
Ukrpromtorg-2003
LLC (“Ukrpromtorg”)
|
65.5%
|
Ukraine
|
Subsidiary
|
Gravis
LLC (“Gravis”)
|
60.4%
|
Ukraine
|
Subsidiary
|
Delta
JSC
|
60.4%
|
Ukraine
|
Subsidiary
|
Nart
LLC
|
65.5%
|
Ukraine
|
Subsidiary
|
TV
Stimul LLC (“TV Stimul”)
|
64.2%
|
Ukraine
|
Subsidiary
|
Tor
LLC (“Tor”)
|
60.4%
|
Ukraine
|
Subsidiary
|
Zhysa
LLC (“Zhysa”)
|
60.4%
|
Ukraine
|
Subsidiary
|
Company
Name
|
Effective
Voting
Interest
|
Jurisdiction
of
Organization
|
Type
of Affiliate
|
Central
European Media Enterprises N.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
Central
European Media Enterprises II B.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
CME
Media Enterprises B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Development Corporation
|
100.0%
|
Delaware
(USA)
|
Subsidiary
|
CME
SR d.o.o.
|
100.0%
|
Serbia
|
Subsidiary
|
For
the Three Months Ended
|
For
the Nine Months Ended
|
|||||||||||||||||||||||
US$ million
|
As
reported
|
Impact
of Adoption
|
As
Adjusted
|
As
reported
|
Impact
of Adoption
|
As
Adjusted
|
||||||||||||||||||
Consolidated
Statement of Operations:
|
||||||||||||||||||||||||
Interest
expense
|
(17.9 | ) | (4.2 | ) | (22.1 | ) | (50.3 | ) | (9.4 | ) | (59.7 | ) | ||||||||||||
As
at September 30, 2008
|
||||||||||||||||||||||||
US$ million
|
As
reported
|
Impact
of Adoption
|
As
Adjusted
|
|||||||||||||||||||||
Consolidated
balance sheet:
|
||||||||||||||||||||||||
Other
current assets
|
112.9 | (0.7 | ) | 112.2 | ||||||||||||||||||||
Other
non-current assets
|
22.7 | (1.7 | ) | 21.0 | ||||||||||||||||||||
Senior
Debt
|
1,040.0 | 101.0 | 1,141.0 | |||||||||||||||||||||
Additional
paid-in capital
|
1,017.4 | 108.1 | 1,125.5 | |||||||||||||||||||||
Retained
Earnings
|
66.3 | (9.4 | ) | 56.9 |
Fair
Value on Acquisition
|
||||
Cash
and cash equivalents
|
$ | 326 | ||
Other
net assets
|
(17,481 | ) | ||
Broadcasting
licenses subject to amortization (1)
|
95,114 | |||
Other
intangible assets subject to amortization (2)
|
8,161 | |||
Goodwill
(3)
|
75,585 | |||
Deferred
tax liability
|
(10,114 | ) | ||
Total
purchase price (4)
|
$ | 151,591 |
Fair
Value on Acquisition
|
||||
Cash
and cash equivalents
|
$ | 727 | ||
Other
net assets
|
618 | |||
Property,
plant and equipment
|
3,744 | |||
Intangible
assets not subject to amortization (1)
|
9,124 | |||
Contingent
consideration liability (2)
|
(160 | ) | ||
Deferred
tax liability
|
(2,462 | ) | ||
Total
purchase price (3)
|
$ | 11,591 |
Fair
Value on Acquisition
|
||||
Property,
plant and equipment
|
$ | 2,561 | ||
Intangible
assets not subject to amortization (1)
|
15,892 | |||
Goodwill
(2)
|
2,394 | |||
Total
purchase price (3)
|
$ | 20,847 |
Fair
Value on Acquisition
|
||||
Intangible
assets subject to amortization (1)
|
$ | 41,480 | ||
Intangible
assets not subject to amortization (2)
|
35,652 | |||
Goodwill
|
208,964 | |||
Deferred
tax liability
|
(19,284 | ) | ||
Minority
interests (3)
|
14,398 | |||
Total
purchase price (4)
|
$ | 281,210 |
Balance
December
31, 2007
|
Additions
/ Allocations
|
Foreign
currency movement
|
Balance
September
30, 2008
|
|||||||||||||
Bulgaria
|
$ | - | 75,585 | (6,498 | ) | $ | 69,087 | |||||||||
Croatia
|
773 | - | 5 | 778 | ||||||||||||
Czech
Republic
|
951,286 | - | 45,951 | 997,237 | ||||||||||||
Romania
(1)
|
74,667 | 1,869 | 2,447 | 78,983 | ||||||||||||
Slovak
Republic
|
57,635 | - | 4,804 | 62,439 | ||||||||||||
Slovenia
|
18,393 | - | (522 | ) | 17,871 | |||||||||||
Ukraine
(STUDIO 1+1)
|
4,096 | 208,964 | - | 213,060 | ||||||||||||
Ukraine
(KINO, CITI)
|
7,497 | (59 | ) | - | 7,438 | |||||||||||
Total
|
$ | 1,114,347 | 286,359 | 46,187 | $ | 1,446,893 |
Indefinite-Lived
Broadcast Licenses
|
Amortized
Broadcast Licenses
|
Trademarks
|
Customer
Relationships
|
Other
|
Total
|
|||||||||||||||||||
Balance,
December 31, 2007
|
$ | 50,748 | $ | 187,178 | $ | 60,084 | $ | 73,267 | $ | 2,381 | $ | 373,658 | ||||||||||||
Reallocation
(1)
|
- | - | - | - | 624 | 624 | ||||||||||||||||||
Additions
|
14,177 | 135,551 | 47,190 | 601 | 7,904 | 205,423 | ||||||||||||||||||
Amortization
|
- | (18,398 | ) | (581 | ) | (6,382 | ) | (694 | ) | (26,055 | ) | |||||||||||||
Foreign
currency movements
|
(322 | ) | 2,298 | 3,069 | 5,542 | (726 | ) | 9,861 | ||||||||||||||||
Balance,
September 30, 2008
|
64,603 | 306,629 | 109,762 | 73,028 | 9,489 | 563,511 |
September
30,
2008
|
December
31,
2007
|
|||||||
Gross
value
|
$ | 593,016 | $ | 388,614 | ||||
Accumulated
amortization
|
(94,108 | ) | (65,704 | ) | ||||
Net
book value of amortized intangible assets
|
$ | 498,908 | $ | 322,910 | ||||
Indefinite-lived
broadcast licenses
|
64,603 | 50,748 | ||||||
Total
broadcast licenses and other intangible assets, net
|
$ | 563,511 | $ | 373,658 |
Carrying
Value
|
Fair
Value
|
|||||||||||||||
September
30, 2008
|
December
31, 2007
|
September
30, 2008
|
December
31, 2007
|
|||||||||||||
EUR
245.0 million 8.25% Senior Notes
|
$ | 350,424 | $ | 360,664 | $ | 311,877 | $ | 366,976 | ||||||||
EUR
150.0 million Floating Rate Senior Notes
|
214,545 | 220,815 | 175,927 | 204,806 | ||||||||||||
USD
475.0 million 3.50% Senior Convertible Notes
|
475,000 | - | 403,750 | - | ||||||||||||
$ | 1,039,969 | $ | 581,479 | $ | 891,554 | $ | 571,782 |
From:
|
Fixed
Rate Notes
Redemption
Price
|
|||
May
15, 2009 to May 14, 2010
|
104.125 | % | ||
May
15, 2010 to May 14, 2011
|
102.063 | % | ||
May
15, 2011 and thereafter
|
100.000 | % |
From:
|
Floating
Rate Notes
Redemption
Price
|
|||
May
15, 2008 to May 14, 2009
|
101.000 | % | ||
May
15, 2009 and thereafter
|
100.000 | % |
Stock
Price
|
Shares
issued on conversion of Convertible Notes
|
Shares
received on exercise of capped call options
|
Net
shares issued
|
Value
of shares issued (US$ ‘000)
|
$105.00
and below
|
-
|
-
|
-
|
$
-
|
$
110.00
|
(205,628)
|
133,658
|
(71,970)
|
($7,917)
|
$
120.00
|
(565,476)
|
367,559
|
(197,917)
|
($23,750)
|
$
130.00
|
(869,963)
|
565,475
|
(304,488)
|
($39,583)
|
$
140.00
|
(1,130,951)
|
735,118
|
(395,833)
|
($55,417)
|
$
151.20
|
(1,382,274)
|
898,478
|
(483,796)
|
($73,150)
|
$
200.00
|
(2,148,807)
|
679,248
|
(1,469,559)
|
($293,912)
|
September
30,
2008
|
December
31,
2007
|
|||||||
Third-party
customers
|
$ | 182,434 | $ | 231,524 | ||||
Less:
allowance for bad debts and credit notes
|
(14,431 | ) | (13,935 | ) | ||||
Related
parties
|
10,127 | 8,165 | ||||||
Less:
allowance for bad debts and credit notes
|
(19 | ) | (717 | ) | ||||
Total
accounts receivable (net of allowance)
|
$ | 178,111 | $ | 225,037 |
September
30,
2008
|
December
31,
2007
|
|||||||
Current:
|
||||||||
Prepaid
programming
|
$ | 51,520 | $ | 50,914 | ||||
Other
prepaid expenses
|
18,474 | 11,785 | ||||||
Productions
in progress
|
17,639 | 5,724 | ||||||
VAT
recoverable
|
4,514 | 4,520 | ||||||
Deferred
tax
|
4,758 | 3,652 | ||||||
Capitalized
debt costs
|
5,254 | 3,104 | ||||||
Loan
to related party
|
- | 1,924 | ||||||
Restricted
cash
|
842 | 1,286 | ||||||
Income
taxes recoverable
|
9,068 | 1,234 | ||||||
Other
|
869 | 706 | ||||||
Total
other current assets
|
$ | 112,938 | $ | 84,849 | ||||
September
30,
2008
|
December
31, 2007
|
|||||||
Non-current:
|
||||||||
Capitalized
debt costs
|
$ | 16,139 | $ | 10,310 | ||||
Deferred tax
|
1,638 | 2,147 | ||||||
Other
|
4,890 | 2,917 | ||||||
Total
other non-current assets
|
$ | 22,667 | $ | 15,374 |
September
30,
2008
|
December
31,
2007
|
|||||||
Land
and buildings
|
$ | 99,617 | $ | 84,515 | ||||
Station
machinery, fixtures and equipment
|
204,959 | 173,123 | ||||||
Other
equipment
|
35,842 | 31,512 | ||||||
Software
licenses
|
28,994 | 21,517 | ||||||
Construction
in progress
|
11,959 | 11,406 | ||||||
Total
cost
|
381,371 | 322,073 | ||||||
Less: Accumulated
depreciation
|
(166,022 | ) | (141,762 | ) | ||||
Total
net book value
|
$ | 215,349 | $ | 180,311 | ||||
Assets
held under capital leases (included above)
|
||||||||
Land
and buildings
|
$ | 6,017 | $ | 6,193 | ||||
Station
machinery, fixtures and equipment
|
2,171 | 800 | ||||||
Total
cost
|
8,188 | 6,993 | ||||||
Less:
Accumulated depreciation
|
(2,005 | ) | (1,368 | ) | ||||
Net
book value
|
$ | 6,183 | $ | 5,625 |
September
30,
2008
|
December
31,
2007
|
|||||||
Accounts
payable
|
$ | 27,690 | $ | 37,977 | ||||
Programming
liabilities
|
37,200 | 49,457 | ||||||
Duties
and other taxes payable
|
33,066 | 29,945 | ||||||
Accrued
staff costs
|
27,574 | 29,202 | ||||||
Income
taxes payable
|
3,957 | 27,705 | ||||||
Accrued
production costs
|
8,589 | 4,982 | ||||||
Accrued
interest payable
|
17,510 | 5,930 | ||||||
Accrued
legal costs
|
2,592 | 2,475 | ||||||
Accrued
rent costs
|
953 | 999 | ||||||
Authors’
rights
|
5,554 | 5,522 | ||||||
Other
accrued liabilities
|
15,951 | 9,334 | ||||||
Total
accounts payable and accrued liabilities
|
$ | 180,636 | $ | 203,528 |
September
30,
2008
|
December
31,
2007
|
||||||||
Credit
facilities:
|
|||||||||
Corporate
|
(a)
– (b)
|
$ | - | $ | - | ||||
Czech
Republic
|
(c)
– (e)
|
14,497 | 13,829 | ||||||
Romania
|
(f)
|
- | 683 | ||||||
Slovak
Republic
|
(g)
|
3,898 | - | ||||||
Slovenia
|
(h)
|
- | - | ||||||
Ukraine
(KINO, CITI)
|
(i)
|
1,700 | 1,700 | ||||||
Total
credit facilities
|
$ | 20,095 | $ | 16,212 | |||||
Capital
leases:
|
|||||||||
Bulgaria
operations, net of interest
|
$ | 901 | $ | - | |||||
Romania
operations, net of interest
|
379 | 242 | |||||||
Slovak
Republic operations, net of interest
|
48 | 86 | |||||||
Slovenia
operations, net of interest
|
4,053 | 4,412 | |||||||
Total
capital leases
|
$ | 5,381 | $ | 4,740 | |||||
Total
credit facilities and capital leases
|
$ | 25,476 | $ | 20,952 | |||||
Less
current maturities
|
(19,217 | ) | ( 15,090 | ) | |||||
Total
non-current maturities
|
$ | 6,259 | $ | 5,862 |
2008
|
18,395 | |||
2009
|
1,700 | |||
2010
|
- | |||
2011
|
- | |||
2012
|
350,424 | |||
2013
and thereafter
|
689,545 | |||
Total
|
$ | 1,060,064 |
2008
|
$ | 580 | ||
2009
|
1,227 | |||
2010
|
708 | |||
2011
|
847 | |||
2012
|
480 | |||
2013
and thereafter
|
3,481 | |||
7,323 | ||||
Less:
amount representing interest
|
(1,942 | ) | ||
Present
value of net minimum lease payments
|
$ | 5,381 |
September
30,
2008
|
December
31,
2007
|
|||||||
Current:
|
||||||||
Deferred
revenue
|
$ | 33,638 | $ | 7,126 | ||||
Consideration
payable – Bulgaria
|
4,500 | - | ||||||
Consideration
payable - Romania
|
1,073 | 2,208 | ||||||
Dividends
payable to minority shareholders in subsidiaries
|
1,419 | 1,226 | ||||||
Onerous
contracts
|
2,493 | 2,832 | ||||||
Deferred
tax
|
429 | 272 | ||||||
Obligation
to repurchase shares
|
- | 488 | ||||||
Total
other current liabilities
|
$ | 43,552 | $ | 14,152 | ||||
September
30,
2008
|
December
31,
2007
|
|||||||
Non-current:
|
||||||||
Deferred
tax
|
$ | 107,616 | $ | 73,340 | ||||
Income
taxes payable
|
1,735 | 2,495 | ||||||
Fair
value of derivatives
|
29,913 | 16,242 | ||||||
Consideration
payable – Czech Republic
|
1,566 | - | ||||||
Other
|
12,043 | 3,285 | ||||||
Total
other non-current liabilities
|
$ | 152,873 | $ | 95,362 |
Level
1
|
Unadjusted
quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted
instruments.
|
Level
2
|
Quoted
prices in markets that are not considered to be active or valuations of
financial instruments for which all significant inputs are observable,
either directly or indirectly.
|
Level
3
|
Prices
or valuations that require inputs that are both significant to the fair
value measurement and unobservable.
|
For
the Three Months
Ended
September 30,
|
For
the Nine Months
Ended
September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Interest
on Senior Notes
|
$ | 11,232 | $ | 10,084 | $ | 34,191 | $ | 30,782 | ||||||||
Interest
on Convertible Notes
|
4,156 | - | 9,282 | - | ||||||||||||
Loss
on redemption of Senior Notes
|
- | - | - | 6,853 | ||||||||||||
Amortization
of capitalized debt issuance costs
|
1,277 | 716 | 3,550 | 2,081 | ||||||||||||
Interest
on capital leases
|
94 | 90 | 295 | 264 | ||||||||||||
Other
interest and fees
|
1,188 | 993 | 3,019 | 2,737 | ||||||||||||
$ | 17,947 | $ | 11,883 | $ | 50,337 | $ | 42,717 |
For
the Three Months
Ended
September 30,
|
For
the Nine Months
Ended
September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Stock-based
compensation charged under SFAS 123(R)
|
$ | 1,736 | $ | 1,494 | $ | 5,540 | $ | 4,098 |
Date
of Option Grant
|
Number
of Options Granted
|
Risk-free
interest rate (%)
|
Expected
term (years)
|
Expected
volatility (%)
|
Dividend
yield (%)
|
Weighted-average
fair value ($/share)
|
||||||||||||||||||
April
1, 2008 (Class A)
|
12,500 | 2.65 | 5.25 | 34.98 | 0.00 | $ | 31.85 | |||||||||||||||||
June
3, 2008 (Class A)
|
40,000 | 2.75 | 3.0 | 31.70 | 0.00 | 26.03 | ||||||||||||||||||
June
3, 2008 (Class B)
|
5,000 | 2.75 | 3.0 | 31.70 | 0.00 | $ | 27.33 |
Shares
|
Weighted
Average Exercise Price per Share
|
Weighted
Average Remaining Contractual Term (years)
|
Aggregate
Intrinsic Value
|
|||||||||||||
Outstanding
at January 1, 2008
|
1,176,117 | $ | 56.72 | 7.04 | $ | 69,693 | ||||||||||
Granted
|
57,500 | 101.37 | - | - | ||||||||||||
Exercised
|
(21,075 | ) | 57.97 | - | - | |||||||||||
Forfeited
|
(18,625 | ) | 80.22 | - | - | |||||||||||
Outstanding
at September 30, 2008
|
1,193,917 | $ | 58.48 | 6.17 | $ | 21,602 | ||||||||||
Vested
or expected to vest at September 30, 2008
|
1,108,039 | 57.63 | 6.44 | 20,703 | ||||||||||||
Exercisable
at September 30, 2008
|
613,292 | $ | 35.78 | 5.78 | $ | 19,567 |
For
the Three Months Ended September 30,
|
For
the Nine Months Ended September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
(loss) / income available for common shareholders
|
$ | (14,755 | ) | $ | (18,763 | ) | $ | 67,744 | $ | 15,577 | ||||||
Weighted
average outstanding shares of common stock (000’s)
|
42,335 | 41,489 | 42,324 | 41,077 | ||||||||||||
Dilutive
effect of employee stock options (000’s)
|
- | - | 449 | 476 | ||||||||||||
Common
stock and common stock equivalents (000’s)
|
42,335 | 41,489 | 42,773 | 41,553 | ||||||||||||
Net
loss/ income per share:
|
||||||||||||||||
Basic
|
$ | (0.35 | ) | $ | (0.45 | ) | $ | 1.60 | $ | 0.38 | ||||||
Diluted
|
$ | (0.35 | ) | $ | (0.45 | ) | $ | 1.58 | $ | 0.37 |
·
|
expenses
presented as corporate operating costs in our condensed consolidated
statements of operations and comprehensive
income;
|
·
|
stock-based
compensation charges;
|
·
|
foreign
currency exchange gains and losses;
|
·
|
changes
in fair value of derivatives; and
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments of assets or
investments).
|
For
the Three Months Ended September 30,
|
||||||||||||||||
Segment
Net Revenues (1)
|
Segment
EBITDA
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Country:
|
||||||||||||||||
Bulgaria
(TV2, RING TV) (2)
|
$ | 462 | $ | - | $ | (3,101 | ) | $ | - | |||||||
Croatia
(NOVA TV)
|
8,525 | 7,055 | (5,401 | ) | (2,981 | ) | ||||||||||
Czech
Republic (TV NOVA, NOVA SPORT, NOVA CINEMA)
|
72,602 | 51,140 | 31,405 | 25,989 | ||||||||||||
Romania
(3)
|
59,281 | 44,412 | 20,116 | 19,486 | ||||||||||||
Slovak
Republic (TV MARKIZA)
|
24,795 | 20,286 | 5,847 | 5,544 | ||||||||||||
Slovenia
(POP TV, KANAL A)
|
14,231 | 11,545 | 2,153 | 854 | ||||||||||||
Ukraine
(STUDIO 1+1)
|
20,052 | 39,582 | (7,359 | ) | 16,599 | |||||||||||
Ukraine
(KINO, CITI)
|
1,061 | 816 | (1,203 | ) | (1,339 | ) | ||||||||||
Total
segment data
|
$ | 201,009 | $ | 174,836 | $ | 42,457 | $ | 64,152 | ||||||||
Reconciliation
to condensed consolidated statement of operations:
|
||||||||||||||||
Consolidated
net revenues / (loss) / income before provision for income taxes and
minority interest
|
$ | 201,009 | $ | 174,836 | $ | 5,434 | $ | (14,121 | ) | |||||||
Corporate
operating costs
|
- | - | 11,902 | 20,396 | ||||||||||||
Depreciation
of station property, plant and equipment
|
- | - | 14,227 | 8,768 | ||||||||||||
Amortization
of broadcast licenses and other intangibles
|
- | - | 10,201 | 6,595 | ||||||||||||
Interest
income
|
- | - | (2,127 | ) | (1,180 | ) | ||||||||||
Interest
expense
|
- | - | 17,947 | 11,883 | ||||||||||||
Foreign
currency exchange loss/(gain), net
|
- | - | (4,969 | ) | 23,300 | |||||||||||
Change
in fair value of derivatives
|
- | - | (9,868 | ) | 8,555 | |||||||||||
Other
income
|
- | - | (290 | ) | (44 | ) | ||||||||||
Total
segment data
|
$ | 201,009 | $ | 174,836 | $ | 42,457 | $ | 64,152 |
For
the Nine Months Ended September 30,
|
||||||||||||||||
Segment
Net Revenues (1)
|
Segment
EBITDA
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Country:
|
||||||||||||||||
Bulgaria
(TV2, RING TV) (2)
|
$ | 462 | $ | - | $ | (3,101 | ) | $ | - | |||||||
Croatia
(NOVA TV)
|
38,153 | 24,701 | (6,448 | ) | (9,800 | ) | ||||||||||
Czech
Republic (TV NOVA, NOVA SPORT, NOVA CINEMA)
|
270,730 | 183,203 | 146,454 | 99,251 | ||||||||||||
Romania
(3)
|
197,119 | 135,978 | 81,785 | 57,152 | ||||||||||||
Slovak
Republic (TV MARKIZA)
|
88,126 | 68,615 | 28,958 | 23,012 | ||||||||||||
Slovenia
(POP TV, KANAL A)
|
58,392 | 44,309 | 17,359 | 12,243 | ||||||||||||
Ukraine
(STUDIO 1+1)
|
73,525 | 80,358 | (11,316 | ) | 14,794 | |||||||||||
Ukraine
(KINO, CITI)
|
3,363 | 1,868 | (3,464 | ) | (5,511 | ) | ||||||||||
Total
segment data
|
$ | 729,870 | $ | 539,032 | $ | 250,227 | $ | 191,141 | ||||||||
Reconciliation
to condensed consolidated statement of operations:
|
||||||||||||||||
Consolidated
net revenues / income before provision for income taxes and minority
interest
|
$ | 729,870 | $ | 539,032 | $ | 88,915 | $ | 44,067 | ||||||||
Corporate
operating costs
|
- | - | 35,627 | 42,613 | ||||||||||||
Depreciation
of station property, plant and equipment
|
- | - | 39,745 | 23,347 | ||||||||||||
Amortization
of broadcast licenses and other intangibles
|
- | - | 26,055 | 16,922 | ||||||||||||
Interest
income
|
- | - | (8,088 | ) | (4,326 | ) | ||||||||||
Interest
expense
|
- | - | 50,337 | 42,717 | ||||||||||||
Foreign
currency exchange loss, net
|
- | - | 5,580 | 28,552 | ||||||||||||
Change
in fair value of derivatives
|
- | - | 13,671 | (3,497 | ) | |||||||||||
Other
(income) / expense
|
- | - | (1,615 | ) | 746 | |||||||||||
Total
segment data
|
$ | 729,870 | $ | 539,032 | $ | 250,227 | $ | 191,141 |
For
the Three Months
Ended
September 30,
|
For
the Nine Months
Ended
September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Depreciation
of station property, plant and equipment and amortization of broadcast
licenses and other intangibles:
|
||||||||||||||||
Bulgaria
|
$ | 1,356 | $ | - | $ | 1,356 | $ | - | ||||||||
Croatia
|
1,667 | 918 | 4,774 | 2,650 | ||||||||||||
Czech
Republic
|
11,172 | 7,187 | 31,733 | 20,337 | ||||||||||||
Romania
|
4,214 | 2,703 | 11,581 | 6,630 | ||||||||||||
Slovak
Republic
|
2,941 | 2,350 | 8,396 | 4,484 | ||||||||||||
Slovenia
|
1,437 | 1,212 | 4,232 | 3,308 | ||||||||||||
Ukraine
(STUDIO 1+1)
|
1,362 | 792 | 2,920 | 2,336 | ||||||||||||
Ukraine
(KINO, CITI)
|
279 | 201 | 808 | 524 | ||||||||||||
Total
|
$ | 24,428 | $ | 15,363 | $ | 65,800 | $ | 40,269 | ||||||||
Represented
as follows:
|
||||||||||||||||
Depreciation
of station property, plant & equipment
|
$ | 14,227 | $ | 8,768 | $ | 39,745 | $ | 23,347 | ||||||||
Amortization
of broadcast licenses and other intangibles
|
$ | 10,201 | $ | 6,595 | $ | 26,055 | $ | 16,922 |
Total
assets (1):
|
September
30,
2008
|
December
31,
2007
|
||||||
Bulgaria
|
$ | 239,920 | $ | - | ||||
Croatia
|
49,295 | 44,787 | ||||||
Czech
Republic
|
1,493,293 | 1,429,256 | ||||||
Romania
|
394,777 | 360,144 | ||||||
Slovak
Republic
|
161,732 | 203,302 | ||||||
Slovenia
|
90,966 | 89,984 | ||||||
Ukraine
(STUDIO 1+1)
|
363,837 | 90,064 | ||||||
Ukraine
(KINO, CITI)
|
16,112 | 17,854 | ||||||
Total
segment assets
|
$ | 2,809,932 | $ | 2,235,391 | ||||
Reconciliation
to condensed consolidated balance sheets:
|
||||||||
Corporate
|
177,014 | 103,044 | ||||||
Total
assets
|
$ | 2,986,946 | $ | 2,338,435 |
Long-lived
assets (1):
|
September
30,
2008
|
December
31,
2007
|
||||||
Bulgaria
|
$ | 3,248 | $ | - | ||||
Croatia
|
15,238 | 12,144 | ||||||
Czech
Republic
|
67,696 | 58,809 | ||||||
Romania
|
54,337 | 44,808 | ||||||
Slovak
Republic
|
38,428 | 29,345 | ||||||
Slovenia
|
22,989 | 21,524 | ||||||
Ukraine
(STUDIO 1+1)
|
7,357 | 7,380 | ||||||
Ukraine
(KINO, CITI)
|
4,768 | 5,003 | ||||||
Total
long-lived assets
|
$ | 214,061 | $ | 179,013 | ||||
Reconciliation
to condensed consolidated balance sheets:
|
||||||||
Corporate
|
1,288 | 1,298 | ||||||
Total
long-lived assets
|
$ | 215,349 | $ | 180,311 |
September
30,
2008
|
||||
Bulgaria
|
$ | 34,699 | ||
Croatia
|
13,515 | |||
Czech
Republic
|
44,673 | |||
Romania
|
67,011 | |||
Slovak
Republic
|
13,040 | |||
Slovenia
|
4,452 | |||
Ukraine
(STUDIO 1+1)
|
11,048 | |||
Ukraine
(KINO, CITI)
|
54 | |||
Total
|
$ | 188,492 |
September
30,
2008
|
||||
2008
|
$ | 1,357 | ||
2009
|
4,729 | |||
2010
|
2,089 | |||
2011
|
618 | |||
2012
|
229 | |||
2013
and thereafter
|
623 | |||
Total
|
$ | 9,645 |
Bulgaria
|
The
license of TV2 expires in February 2010.
|
Croatia
|
The
license of NOVA TV (Croatia) expires in April 2010.
|
Czech
Republic
|
The
license of TV NOVA (Czech Republic) expires in January 2017. The GALAXIE
SPORT license expires in March 2014.
|
Romania
|
Licenses
expire on dates ranging from April 2009 to April 2017.
|
Slovak
Republic
|
The
license of TV MARKIZA in the Slovak Republic expires in September
2019.
|
Slovenia
|
The
licenses of POP TV and KANAL A expire in August 2012.
|
Ukraine
|
The
15-hour prime time and off prime time license of STUDIO 1+1 expires in
December 2016. The license to broadcast for the remaining nine hours in
off prime expires in August 2014. Licenses used for the KINO
and CITI channels expire on dates ranging from November 2008 to August
2018.
|
I.
|
Forward-looking
Statements
|
II.
|
Executive
Summary
|
III.
|
Analysis
of Segment Results
|
IV.
|
Analysis
of the Results of Consolidated Operations
|
V.
|
Liquidity
and Capital Resources
|
VI.
|
Critical
Accounting Policies and
Estimates
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Net
revenues
|
$ | 201,009 | $ | 174,836 | 15.0 | % | ||||||
Operating
income
|
6,127 | 28,393 | (78.4 | )% | ||||||||
Net
(loss)
|
$ | (14,755 | ) | $ | (18,763 | ) | 21.4 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Net
revenues
|
$ | 729,870 | $ | 539,032 | 35.4 | % | ||||||
Operating
income
|
148,800 | 108,259 | 37.5 | % | ||||||||
Net
income
|
$ | 67,744 | $ | 15,577 | 334.9 | % |
·
|
In
the three months ended September 30, 2008, we reported growth in Segment
Net Revenues of 15% compared to the three months ended September 30,
2007. Aside from our Ukraine (Studio 1+1) operations, which had
benefited from political advertising in the comparative period in 2007,
each of our stations showed growth in excess of 20%, with particularly
strong growth in the Czech Republic and
Romania.
|
·
|
Segment
EBITDA declined by 34% compared to the three months ended September 30,
2007, due to the costs of our start-up Bulgaria operations and the
continued poor performance of our Ukraine (Studio 1+1)
operations. We generated a Segment EBITDA margin of 21%
compared to the 37% margin reported in the three months ended September
30, 2007, (Segment EBITDA is defined and reconciled to our consolidated
results in Item 1, Note 17, “Segment
Data”.)
|
·
|
On
August 1, 2008, we acquired an 80% indirect interest in each of TV2, which
operates a national terrestrial network in Bulgaria, and Ring TV, which
operates a sports cable channel, for cash consideration of US$ 146.4
million. See Item 1, Note 3, “Acquisitions and Disposals – Bulgaria” for
further information.
|
·
|
On
September 18, 2008, we announced a multi-year licensing agreement with MTV
Networks International to launch a localized MTV channel in the Czech
Republic, with the opportunity to distribute the channel via cable and
satellite platforms in the Slovak Republic. We expect to launch the
channel during the first half of next
year.
|
·
|
On
September 22, 2008 we were awarded an International News Emmy from the
International Academy of Television Arts and Sciences for PRO TV’s report
“Any Idea What Your Kid Is Doing Right Now?” which focused on the issue of
child abandonment. This was the first International News Emmy awarded to
an Eastern European broadcaster.
|
·
|
On
October 17, 2008, we completed the acquisition of the remaining 10%
interest in the Studio 1+1 group held by our former partners, Alexander
Rodnyansky and Boris Fuchsmann for cash consideration of US$109.1
million.
|
·
|
Effective
October 22, 2008, Marina Williams, our Executive Vice President, resigned
to pursue other professional
opportunities.
|
|
·
|
improving
margins by leveraging expertise from our best-performing
operations;
|
|
·
|
optimizing
the cash generated from our existing operations by managing capital
expenditure and programming costs in order to provide liquidity and fund
future growth opportunities;
|
|
·
|
ensuring
that our leading position in our operating countries is secured during the
transition to digital terrestrial broadcasting and the anticipated growth
of DTH offerings;
|
|
·
|
launching
or acquiring additional channels in our markets in order to expand our
offerings, target niche audiences and increase our advertising inventory
when financially prudent;
|
|
·
|
developing
our Bulgaria and Ukraine operations in a controlled manner to secure
consistent performance and a leading position in those markets;
and
|
|
·
|
expanding
our capabilities in production and the development of local
content.
|
·
|
expenses
presented as corporate operating costs in our condensed consolidated
statements of operations and comprehensive
income;
|
·
|
stock-based
compensation charges;
|
·
|
foreign
currency exchange gains and losses;
|
·
|
change
in fair value of derivatives; and
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments of assets or
investments).
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||||||
2008
|
2007
|
Change
|
Constant
Currency (4)
|
|||||||||||||
Segment
Net Revenue
|
||||||||||||||||
Bulgaria
(TV2, RING TV) (1)
|
$ | 462 | $ | - | nm(5 | ) |
nm(5
|
) | ||||||||
Croatia
(NOVA TV)
|
8,525 | 7,055 | 21 | % | 8 | % | ||||||||||
Czech
Republic (TV NOVA, NOVA SPORT, NOVA CINEMA)
|
72,602 | 51,140 | 42 | % | 15 | % | ||||||||||
Romania
(2)
|
59,281 | 44,412 | 34 | % | 35 | % | ||||||||||
Slovak
Republic (TV MARKIZA)
|
24,795 | 20,286 | 22 | % | 2 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
14,231 | 11,545 | 23 | % | 14 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
20,052 | 39,582 | (49 | )% | (49 | )% | ||||||||||
Ukraine
(KINO, CITI)
|
1,061 | 816 | 30 | % | 30 | % | ||||||||||
Total
Segment Net Revenues
|
$ | 201,009 | $ | 174,836 | 15 | % | 5 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ | 198,834 | $ | 173,991 | 14 | % | ||||||||||
Non-broadcast
operations
|
2,175 | 845 | 157 | % | ||||||||||||
Total
Segment Revenues
|
$ | 201,009 | $ | 174,836 | 15 | % | ||||||||||
Segment
EBITDA
|
||||||||||||||||
Bulgaria
(1)
|
$ | (3,101 | ) | $ | - | nm(5 | ) |
nm(5
|
) | |||||||
Croatia
(NOVA TV)
|
(5,401 | ) | (2,981 | ) | 81 | % | (63 | )% | ||||||||
Czech
Republic (TV NOVA, NOVA SPORT, NOVA CINEMA)
|
31,405 | 25,989 | 21 | % | 1 | % | ||||||||||
Romania
(2)
|
20,116 | 19,486 | 3 | % | 6 | % | ||||||||||
Slovak
Republic (TV MARKIZA)
|
5,847 | 5,544 | 6 | % | (9 | )% | ||||||||||
Slovenia
(POP TV, KANAL A)
|
2,153 | 854 | 152 | % | 162 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
(7,359 | ) | 16,599 | (144 | )% | (144 | )% | |||||||||
Ukraine
(KINO, CITI)
|
(1,203 | ) | (1,339 | ) | 10 | % | 10 | % | ||||||||
Total
Segment EBITDA
|
$ | 42,457 | $ | 64,152 | (34 | )% | (39 | )% | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ | 45,247 | $ | 65,805 | (31 | )% | ||||||||||
Non-broadcast
operations
|
(2,790 | ) | (1,653 | ) | (69 | )% | ||||||||||
Total
Segment EBITDA
|
$ | 42,457 | $ | 64,152 | (34 | )% | ||||||||||
Segment
EBITDA Margin (3)
|
21 | % | 37 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||||||
2008
|
2007
|
Change
|
Constant
Currency (4)
|
|||||||||||||
Segment
Net Revenue
|
||||||||||||||||
Bulgaria
(TV2 RING TV) (1)
|
$ | 462 | $ | - | nm(5 | ) |
nm(5
|
) | ||||||||
Croatia
(NOVA TV)
|
38,153 | 24,701 | 55 | % | 34 | % | ||||||||||
Czech
Republic (TV NOVA, NOVA SPORT, NOVA CINEMA)
|
270,730 | 183,203 | 48 | % | 16 | % | ||||||||||
Romania
(2)
|
197,119 | 135,978 | 45 | % | 41 | % | ||||||||||
Slovak
Republic (MARKIZA TV)
|
88,126 | 68,615 | 28 | % | 5 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
58,392 | 44,309 | 32 | % | 16 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
73,525 | 80,358 | (9 | )% | (9 | )% | ||||||||||
Ukraine
(KINO, CITI)
|
3,363 | 1,868 | 80 | % | 80 | % | ||||||||||
Total
Segment Net Revenues
|
$ | 729,870 | $ | 539,032 | 35 | % | 18 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ | 722,942 | $ | 536,964 | 35 | % | ||||||||||
Non-broadcast
operations
|
6,928 | 2,068 | 235 | % | ||||||||||||
Total
Segment Revenues
|
$ | 729,870 | $ | 539,032 | 35 | % | ||||||||||
Segment
EBITDA
|
||||||||||||||||
Bulgaria
(1)
|
$ | (3,101 | ) | $ | - | nm(5 | ) |
nm(5
|
) | |||||||
Croatia
(NOVA TV)
|
(6,448 | ) | (9,800 | ) | 34 | % | 43 | % | ||||||||
Czech
Republic (TV NOVA, NOVA SPORT, NOVA CINEMA)
|
146,454 | 99,251 | 48 | % | 16 | % | ||||||||||
Romania
(2)
|
81,785 | 57,152 | 43 | % | 40 | % | ||||||||||
Slovak
Republic (MARKIZA TV)
|
28,958 | 23,012 | 26 | % | 3 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
17,359 | 12,243 | 42 | % | 24 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
(11,316 | ) | 14,794 | (177 | )% | (177 | )% | |||||||||
Ukraine
(KINO, CITI)
|
(3,464 | ) | (5,511 | ) | 37 | % | 37 | % | ||||||||
Total
Segment EBITDA
|
$ | 250,227 | $ | 191,141 | 31 | % | 11 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ | 256,388 | $ | 193,538 | 33 | % | ||||||||||
Non-broadcast
operations
|
(6,161 | ) | (2,397 | ) | (157 | )% | ||||||||||
Total
Segment EBITDA
|
$ | 250,227 | $ | 191,141 | 31 | % | ||||||||||
Segment
EBITDA Margin (3)
|
34 | % | 35 | % |
For
the two months from acquisition to September 30, 2008
|
||||
All
day audience share
|
2.6 | % | ||
All
day ratings
|
0.2 | % | ||
Prime
time audience share
|
2.4 | % | ||
Prime
time ratings
|
0.6 | % |
BULGARIA
SEGMENT FINANICIAL INFORMATION
|
||||
For
the period from acquisition to September 30, 2008
|
||||
Spot
revenues
|
$ | 158 | ||
Non-spot
revenues
|
304 | |||
Segment
Net Revenues
|
$ | 462 | ||
Represented
by:
|
||||
Broadcast
operations
|
$ | 460 | ||
Non-broadcast
operations
|
2 | |||
Segment
Net Revenues
|
$ | 462 | ||
Segment
EBITDA
|
$ | (3,101 | ) | |
Represented
by:
|
||||
Broadcast
operations
|
$ | (3,031 | ) | |
Non-broadcast
operations
|
(70 | ) | ||
Segment
EBITDA
|
$ | (3,101 | ) | |
Segment
EBITDA Margin
|
(671 | )% |
·
|
Segment Net Revenues for
the two months from acquisition to September 30, 2008 were US$ 0.5
million. Spot revenues were US$ 0.2 million. Non-spot revenues were US$
0.3 million, primarily from cable
revenues.
|
·
|
Segment EBITDA losses
for the two months from acquisition to September 30, 2008 were US$ 3.1
million. We incurred programming costs of US$ 1.6 million, other operating
costs of US$ 1.2 million and selling, general and administrative costs of
US$ 0.8 million.
|
For
the Nine Months Ended September 30,
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
All
day audience share
|
22.6 | % | 18.7 | % | 3.9 | % | ||||||
All
day ratings
|
3.3 | % | 2.9 | % | 0.4 | % | ||||||
Prime
time audience share
|
25.7 | % | 20.0 | % | 5.7 | % | ||||||
Prime
time ratings
|
8.7 | % | 7.1 | % | 1.6 | % |
CROATIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 7,084 | $ | 5,308 | 33.4 | % | ||||||
Non-spot
revenues
|
1,441 | 1,747 | (17.5 | )% | ||||||||
Segment
Net Revenues
|
$ | 8,525 | $ | 7,055 | 20.9 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 8,430 | $ | 6,976 | 20.8 | % | ||||||
Non-broadcast
operations
|
95 | 79 | 20.3 | % | ||||||||
Segment
Net Revenues
|
$ | 8,525 | $ | 7,055 | 20.9 | % | ||||||
Segment
EBITDA
|
$ | (5,401 | ) | $ | (2,981 | ) | (81.2 | )% | ||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (4,547 | ) | $ | (3,002 | ) | (51.5 | )% | ||||
Non-broadcast
operations
|
(854 | ) | 21 | (4166.7 | )% | |||||||
Segment
EBITDA
|
$ | (5,401 | ) | $ | (2,981 | ) | (81.2 | )% | ||||
Segment
EBITDA Margin
|
(63 | )% | (42 | )% | (21 | )% |
·
|
Segment Net Revenues for
the three months ended September 30, 2008 increased by 21%, compared to
the three months ended September 30, 2007. In local currency,
Segment Net Revenues increased by 8%. Spot revenues for the
three months ended September 30, 2008 increased by 33% compared to the
same period in 2007 because our ratings improvement in 2007 and 2008 has
supported the sale of significantly higher volumes of
GRPs. Non-spot revenues decreased by 18%, primarily as a result
of decreased levels of sponsorship. We launched four new local
productions in the fall schedule, including the new game show “Moment of
Truth,” which has been particularly successful, with an average audience
share of 30%. Our Dnevnik.hr website enjoyed its most
successful month ever in September 2008, with the number of unique users
increasing by almost 60% from June
2008.
|
·
|
Segment EBITDA losses
for the three months ended September 30, 2008 increased by 81% compared to
the three months ended September 30, 2007. In local currency,
Segment EBITDA losses increased by
63%.
|
CROATIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 31,796 | $ | 18,812 | 69.0 | % | ||||||
Non-spot
revenues
|
6,357 | 5,889 | 8.0 | % | ||||||||
Segment
Net Revenues
|
$ | 38,153 | $ | 24,701 | 54.5 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 37,744 | $ | 24,592 | 53.5 | % | ||||||
Non-broadcast
operations
|
409 | 109 | 275.2 | % | ||||||||
Segment
Net Revenues
|
$ | 38,153 | $ | 24,701 | 54.5 | % | ||||||
Segment
EBITDA
|
$ | (6,448 | ) | $ | (9,800 | ) | 34.2 | % | ||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (4,977 | ) | $ | (9,769 | ) | 49.1 | % | ||||
Non-broadcast
operations
|
(1,471 | ) | (31 | ) | (4645.2 | )% | ||||||
Segment
EBITDA
|
$ | (6,448 | ) | $ | (9,800 | ) | 34.2 | % | ||||
Segment
EBITDA Margin
|
(17 | )% | (40 | )% | 23 | % |
·
|
Segment Net Revenues for
the nine months ended September 30, 2008 increased by 55%, compared to the
nine months ended September 30, 2007. In local currency,
Segment Net Revenues increased by 34%. Spot revenues for the
nine months ended September 30, 2008 increased by 69% compared to the same
period in 2007 because our ratings improvement in 2007 and 2008 has
supported the sale of significantly higher volumes of GRPs at increased
prices. Non-spot revenues increased by 8%, primarily as a
result of increased levels of non-broadcast
revenues.
|
·
|
Segment EBITDA
losses for the nine
months ended September 30, 2008 decreased by 34% compared to the nine
months ended September 30, 2007. In local currency, Segment
EBITDA losses decreased by 43%.
|
For
the Nine Months Ended September 30,
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
All
day audience share
|
41.1 | % | 43.1 | % | (2.0 | )% | ||||||
All
day ratings
|
4.5 | % | 4.6 | % | (0.1 | )% | ||||||
Prime
time audience share
|
45.3 | % | 46.8 | % | (1.5 | )% | ||||||
Prime
time ratings
|
13.1 | % | 13.8 | % | (0.7 | )% |
CZECH
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 66,607 | $ | 45,541 | 46.3 | % | ||||||
Non-spot
revenues
|
5,995 | 5,599 | 7.1 | % | ||||||||
Segment
Net Revenues
|
$ | 72,602 | $ | 51,140 | 42.0 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 71,813 | $ | 51,032 | 40.7 | % | ||||||
Non-broadcast
operations
|
789 | 108 | 630.6 | % | ||||||||
Segment
Net Revenues
|
$ | 72,602 | $ | 51,140 | 42.0 | % | ||||||
Segment
EBITDA
|
$ | 31,405 | $ | 25,989 | 20.8 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 33,044 | $ | 26,258 | 25.8 | % | ||||||
Non-broadcast
operations
|
(1,639 | ) | (269 | ) | (509.3 | %) | ||||||
Segment
EBITDA
|
$ | 31,405 | $ | 25,989 | 20.8 | % | ||||||
Segment
EBITDA Margin
|
43 | % | 51 | % | (8 | )% |
·
|
Segment Net Revenues for
the three months ended September 30, 2008 increased by 42%, compared to
the three months ended September 30, 2007. In local currency,
Segment Net Revenues increased by 15%. Spot revenues increased
by 46%, with an increase in the average revenue per GRP sold. Non-spot
revenue increased by 7%, primarily due to increased
sponsorship. Our fall schedule includes several local fiction
formats, including the fourth series of “Insuring
Happiness”. Both the new and longer-running formats have
enjoyed strong initial ratings which is encouraging for the fourth
quarter. Our policy of encouraging advertisers to shift their
spending towards the cheaper low season has continued to prove attractive
to clients seeking to optimize budgets, but has had less impact than in
the first quarter.
|
·
|
Segment EBITDA for the three months ended September 30, 2008
increased by 21%, compared to the three months ended September 30, 2007,
resulting in an EBITDA margin of 43% compared to 51% in the three months
ended September 30, 2007. In local currency, Segment EBITDA
increased 1%.
|
CZECH
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 248,279 | $ | 166,253 | 49.3 | % | ||||||
Non-spot
revenues
|
22,451 | 16,950 | 32.5 | % | ||||||||
Segment
Net Revenues
|
$ | 270,730 | $ | 183,203 | 47.8 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 269,236 | $ | 183,001 | 47.1 | % | ||||||
Non-broadcast
operations
|
1,494 | 202 | 639.6 | % | ||||||||
Segment
Net Revenues
|
$ | 270,730 | $ | 183,203 | 47.8 | % | ||||||
Segment
EBITDA
|
$ | 146,454 | $ | 99,251 | 47.6 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 149,337 | $ | 100,017 | 49.3 | % | ||||||
Non-broadcast
operations
|
(2,883 | ) | (766 | ) | 276.4 | % | ||||||
Segment
EBITDA
|
$ | 146,454 | $ | 99,251 | 47.6 | % | ||||||
Segment
EBITDA Margin
|
54 | % | 54 | % | - |
·
|
Segment Net Revenues for
the nine months ended September 30, 2008 increased by 48%, compared to the
nine months ended September 30, 2007. In local currency,
Segment Net Revenues increased by 16%. Spot revenues increased
by 49%, with an increase in the average revenue per GRP sold. Non-spot
revenue increased by 33%, primarily due to increased
sponsorship. Our long running series such as Ordinace (Rose
Garden Medical Centre) and Ulice (Street) continue to perform
strongly.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2008 increased by 48%, compared to the
nine months ended September 30, 2007, resulting in an unchanged EBITDA
margin of 54% compared to the nine months ended September 30,
2007. In local currency, Segment EBITDA increased by
16%.
|
For
the Nine Months Ended September 30,
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
All
day audience share
|
28.8 | % | 29.4 | % | (0.6 | )% | ||||||
All
day ratings
|
4.5 | % | 4.0 | % | 0.5 | % | ||||||
Prime
time audience share
|
31.9 | % | 31.5 | % | 0.4 | % | ||||||
Prime
time ratings
|
10.4 | % | 9.1 | % | 1.3 | % |
ROMANIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 54,720 | $ | 41,146 | 33.0 | % | ||||||
Non-spot
revenues
|
4,561 | 3,266 | 39.7 | % | ||||||||
Segment
Net Revenues
|
$ | 59,281 | $ | 44,412 | 33.5 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 59,044 | $ | 44,326 | 33.2 | % | ||||||
Non-broadcast
operations
|
237 | 86 | 175.6 | % | ||||||||
Segment
Net Revenues
|
$ | 59,281 | $ | 44,412 | 33.5 | % | ||||||
Segment
EBITDA
|
$ | 20,116 | $ | 19,486 | 3.2 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 20,413 | $ | 19,613 | 4.1 | % | ||||||
Non-broadcast
operations
|
(297 | ) | (127 | ) | (133.9 | )% | ||||||
Segment
EBITDA
|
$ | 20,116 | $ | 19,486 | 3.2 | % | ||||||
Segment
EBITDA Margin
|
34 | % | 44 | % | (10 | )% |
·
|
Segment Net
Revenues for the three months ended September 30, 2008
increased by 34%, compared to the three months ended September 30,
2007. The functional currency of our Romanian operations
changed from the US dollar to the New Romanian lei with effect from
January 1, 2008; for comparative purposes Segment Net Revenues increased
by 35% in New Romanian lei for the three months ended September 30, 2008
compared to the three months ended September 30, 2007. Spot
revenues increased by 33%, driven by increases in the average revenue per
GRP sold. In addition US$ 1.6 million of spot revenue was
generated from RADIO PRO, acquired on April 17, 2008, and US$ 0.7 million
was generated from MTV ROMANIA. Non-spot revenues increased by
40%, primarily due to increased cable tariff revenue generated by SPORT.RO
and MTV
ROMANIA.
|
·
|
Segment EBITDA for the
three months ended September 30, 2008 increased by 3%, compared to the
three months ended September 30, 2007, resulting in an EBITDA margin of
34%, compared to 44% in the three months ended September 30, 2007.
In local currency, Segment EBITDA increased by
6%.
|
ROMANIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 181,616 | $ | 126,750 | 43.3 | % | ||||||
Non-spot
revenues
|
15,503 | 9,228 | 68.0 | % | ||||||||
Segment
Net Revenues
|
$ | 197,119 | $ | 135,978 | 45.0 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 196,072 | $ | 135,836 | 44.3 | % | ||||||
Non-broadcast
operations
|
1,047 | 142 | 637.3 | % | ||||||||
Segment
Net Revenues
|
$ | 197,119 | $ | 135,978 | 45.0 | % | ||||||
Segment
EBITDA
|
$ | 81,785 | $ | 57,152 | 43.1 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 82,163 | $ | 57,512 | 42.9 | % | ||||||
Non-broadcast
operations
|
(378 | ) | (360 | ) | (5.0 | )% | ||||||
Segment
EBITDA
|
$ | 81,785 | $ | 57,152 | 43.1 | % | ||||||
Segment
EBITDA Margin
|
41 | % | 42 | % | (1 | )% |
·
|
Segment Net Revenues for the nine months ended September 30, 2008
increased by 45%, compared to the nine months ended September 30,
2007. The functional currency of our Romanian operations
changed from the US dollar to the New Romanian lei with effect from
January 1, 2008; for comparative purposes Segment Net Revenues increased
by 41% in New Romanian lei for the nine months ended September 30, 2008
compared to the nine months ended September 30,
2007. Spot revenues increased by 43%, driven by increases
in the average revenue per GRP sold. In addition US$ 3.1
million of spot revenue was generated from RADIO PRO, acquired on April
17, 2008 and US$ 2.4 million was generated from MTV
ROMANIA. Non-spot revenues increased by 68%, primarily due to
increased cable tariff revenue generated by SPORT.RO and MTV
ROMANIA.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2008 increased by 43%, compared to the
nine months ended September 30, 2007, resulting in an EBITDA margin of
41%, compared to 42% in the nine months ended September 30, 2007. In
local currency, Segment EBITDA increased by
40%.
|
For
the Nine Months Ended September 30,
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
All
day audience share
|
35.1 | % | 34.7 | % | 0.4 | % | ||||||
All
day ratings
|
4.4 | % | 4.5 | % | (0.1 | )% | ||||||
Prime
time audience share
|
37.2 | % | 38.1 | % | (0.9 | )% | ||||||
Prime
time ratings
|
13.0 | % | 13.9 | % | (0.9 | )% |
SLOVAK
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 23,391 | $ | 19,344 | 20.9 | % | ||||||
Non-spot
revenues
|
1,404 | 942 | 49.0 | % | ||||||||
Segment
Net Revenues
|
$ | 24,795 | $ | 20,286 | 22.2 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 24,749 | $ | 20,183 | 22.6 | % | ||||||
Non-broadcast
operations
|
46 | 103 | (55.3 | )% | ||||||||
Segment
Net Revenues
|
$ | 24,795 | $ | 20,286 | 22.2 | % | ||||||
Segment
EBITDA
|
$ | 5,847 | $ | 5,544 | 5.5 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 6,269 | $ | 5,656 | 10.8 | % | ||||||
Non-broadcast
operations
|
(422 | ) | (112 | ) | (276.8 | )% | ||||||
Segment
EBITDA
|
$ | 5,847 | $ | 5,544 | 5.5 | % | ||||||
Segment
EBITDA Margin
|
24 | % | 27 | % | (3 | )% |
·
|
Segment Net Revenues for
the three months ended September 30, 2008 increased by 22%, compared to
the three months ended September 30, 2007. In local currency,
Segment Net Revenues increased by 2%. The increase in Segment
Net Revenues was due to increases of 21% in spot revenues and 49% in
non-spot revenues. The increase in spot revenues is mainly due
to an increase in the average revenue per GRP sold, offsetting a slight
decrease in the volume of GRPs sold. The increase in non-spot revenues was
due to increased sponsorship from the show ‘Slovakia’s Got
Talent’.
|
·
|
Segment EBITDA for the three months ended September 30, 2008
increased by 6%, compared to the three months ended September 30, 2007,
and the EBITDA margin decreased to 24% from 27% over comparable
periods. In local currency, Segment EBITDA decreased by
9%.
|
SLOVAK
REPUBLIC SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 81,593 | $ | 65,913 | 23.8 | % | ||||||
Non-spot
revenues
|
6,533 | 2,702 | 141.8 | % | ||||||||
Segment
Net Revenues
|
$ | 88,126 | $ | 68,615 | 28.4 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 87,955 | $ | 68,408 | 28.6 | % | ||||||
Non-broadcast
operations
|
171 | 207 | (17.4 | )% | ||||||||
Segment
Net Revenues
|
$ | 88,126 | $ | 68,615 | 28.4 | % | ||||||
Segment
EBITDA
|
$ | 28,958 | $ | 23,012 | 25.8 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 29,850 | $ | 23,409 | 27.5 | % | ||||||
Non-broadcast
operations
|
(892 | ) | (397 | ) | (124.7 | )% | ||||||
Segment
EBITDA
|
$ | 28,958 | $ | 23,012 | 25.8 | % | ||||||
Segment
EBITDA Margin
|
33 | % | 34 | % | (1 | )% |
·
|
Segment Net Revenues
for the nine months ended September 30,
2008 increased by 28%, compared to the nine months ended September 30,
2007. In local currency, Segment Net Revenues increased by
5%. The increase in Segment Net Revenues was due to increases
of 24% in spot revenues and 142% in non-spot revenues. The
increase in spot revenues is mainly due to an increase in the average
revenue per GRP sold, offsetting a slight decrease in the volume of GRPs
sold. The increase in non-spot revenues was due to increased
sponsorship revenue generated from the shows ‘Elan Je Elan’, ‘Let’s Dance’
and ‘Slovakia’s Got Talent’, with the comparable period in 2007 having
only one sponsorship generating show in
‘Bailando’.
|
·
|
Segment EBITDA for the nine months ended September 30, 2008
increased by 26%, compared to the nine months ended September 30, 2007,
resulting in an EBITDA margin of 33% compared to 34% in the nine months
ended September 30, 2007. In local currency, Segment EBITDA
increased by 3%.
|
For
the Nine Months Ended September 30,
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
All
day audience share
|
39.6 | % | 39.7 | % | (0.1 | )% | ||||||
All
day ratings
|
4.3 | % | 4.4 | % | (0.1 | )% | ||||||
Prime
time audience share
|
46.1 | % | 47.0 | % | (0.9 | ) % | ||||||
Prime
time ratings
|
11.0 | % | 11.2 | % | (0.2 | )% |
SLOVENIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 11,902 | $ | 10,413 | 14.3 | % | ||||||
Non-spot
revenues
|
2,329 | 1,132 | 105.7 | % | ||||||||
Segment
Net Revenues
|
$ | 14,231 | $ | 11,545 | 23.3 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 13,235 | $ | 11,076 | 19.5 | % | ||||||
Non-broadcast
operations
|
996 | 469 | 112.4 | % | ||||||||
Segment
Net Revenues
|
$ | 14,231 | $ | 11,545 | 23.3 | % | ||||||
Segment
EBITDA
|
$ | 2,153 | $ | 854 | 152.1 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 1,452 | $ | 1,869 | (22.3 | )% | ||||||
Non-broadcast
operations
|
701 | (1,015 | ) | 169.1 | % | |||||||
Segment
EBITDA
|
$ | 2,153 | $ | 854 | 152.1 | % | ||||||
Segment
EBITDA Margin
|
15 | % | 7 | % | 8 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2008 increased by 23%, compared to
the three months ended September 30, 2007. In local currency,
Segment Net Revenues increased by 14%. Spot revenues increased by 14%,
driven by increases in the average revenue per GRP sold which more than
offset a slight decline in volume of GRPs sold. Non-spot
revenues increased by 106% primarily due to increased levels of
non-broadcast advertising revenues as well as increased
sponsorship.
|
·
|
Segment EBITDA for the
three months ended September 30, 2008 increased by 152%, compared to the
three months September 30, 2007, resulting in an EBITDA margin of 15%
compared to 7% in the three months ended September 30, 2007. In
local currency, Segment EBITDA increased by
162%.
|
SLOVENIA
SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 49,720 | $ | 39,173 | 26.9 | % | ||||||
Non-spot
revenues
|
8,672 | 5,136 | 68.8 | % | ||||||||
Segment
Net Revenues
|
$ | 58,392 | $ | 44,309 | 31.8 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 54,646 | $ | 42,901 | 27.4 | % | ||||||
Non-broadcast
operations
|
3,746 | 1,408 | 166.1 | % | ||||||||
Segment
Net Revenues
|
$ | 58,392 | $ | 44,309 | 31.8 | % | ||||||
Segment
EBITDA
|
$ | 17,359 | $ | 12,243 | 41.8 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 17,227 | $ | 12,752 | 35.1 | % | ||||||
Non-broadcast
operations
|
132 | (509 | ) | 125.9 | % | |||||||
Segment
EBITDA
|
$ | 17,359 | $ | 12,243 | 41.8 | % | ||||||
Segment
EBITDA Margin
|
30 | % | 28 | % | 2 | % |
·
|
Segment Net Revenues for
the nine months ended September 30, 2008 increased by 32% compared to the
nine months ended September 30, 2007. In local currency,
Segment Net Revenues increased by 16%. Spot revenues increased by 27%
driven by increases in the average revenue per GRP
sold. Non-spot revenues increased by 69% primarily due to
increased levels of non-broadcast advertising revenues, as well as
increased sponsorship.
|
·
|
Segment EBITDA for the nine months ended September 30, 2008
increased by 42%, compared to the nine months September 30, 2007. This
resulted in the segment EBITDA margin growing to 30% from 28% in the nine
months ended September 30, 2007. In local currency, Segment
EBITDA increased by
24%.
|
For
the Nine Months Ended September 30,
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
All
day audience share
|
12.5 | % | 15.5 | % | (3.0 | )% | ||||||
All
day ratings
|
1.8 | % | 2.2 | % | (0.4 | )% | ||||||
Prime
time audience share
|
14.1 | % | 17.6 | % | (3.5 | )% | ||||||
Prime
time ratings
|
4.8 | % | 6.0 | % | (1.2 | )% |
UKRAINE
(STUDIO 1+1) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 19,130 | $ | 34,461 | (44.5 | )% | ||||||
Non-spot
revenues
|
922 | 5,121 | (82.0 | )% | ||||||||
Segment
Net Revenues
|
$ | 20,052 | $ | 39,582 | (49.3 | )% | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 20,042 | $ | 39,582 | (49.4 | )% | ||||||
Non-broadcast
operations
|
10 | - | - | |||||||||
Segment
Net Revenues
|
$ | 20,052 | $ | 39,582 | (49.3 | )% | ||||||
Segment
EBITDA
|
$ | (7,359 | ) | $ | 16,599 | (144.3 | )% | |||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (7,150 | ) | $ | 16,750 | (142.7 | )% | |||||
Non-broadcast
operations
|
(209 | ) | (151 | ) | (38.4 | )% | ||||||
Segment
EBITDA
|
$ | (7,359 | ) | $ | 16,599 | (144.3 | )% | |||||
Segment
EBITDA Margin
|
(37 | )% | 42 | % | (79 | )% |
·
|
Segment Net Revenues for
the three months ended September 30, 2008 decreased by 49%, compared to
the three months ended September 30, 2007. Spot revenues decreased by 45%,
primarily due to the comparable period having benefitted from the receipt
of an estimated US$ 16.5 million of political advertising by Studio 1+1
generated from the parliamentary elections held on September 30,
2007. Non-spot revenues decreased by 82% due to decreased
sponsorship, with the comparable period also having included US$ 1.5
million in political advertising. There was also a decrease in the sale of
surplus programming.
|
·
|
Segment EBITDA for the
three months ended September 30, 2008 decreased by 144% compared to the
three months ended September 30, 2007, resulting in an EBITDA margin loss
of (37)% compared to a 42% Segment EBITDA margin in the three months ended
September 30, 2007.
|
UKRAINE
(STUDIO 1+1) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 60,991 | $ | 67,567 | (9.7 | )% | ||||||
Non-spot
revenues
|
12,534 | 12,791 | (2.0 | )% | ||||||||
Segment
Net Revenues
|
$ | 73,525 | $ | 80,358 | (8.5 | )% | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 73,466 | $ | 80,358 | (8.6 | )% | ||||||
Non-broadcast
operations
|
59 | - | - | |||||||||
Segment
Net Revenues
|
$ | 73,525 | $ | 80,358 | (8.5 | )% | ||||||
Segment
EBITDA
|
$ | (11,316 | ) | $ | 14,794 | (176.5 | )% | |||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (10,717 | ) | $ | 15,128 | (170.8 | )% | |||||
Non-broadcast
operations
|
(599 | ) | (334 | ) | (79.3 | )% | ||||||
Segment
EBITDA
|
$ | (11,316 | ) | $ | 14,794 | (176.5 | )% | |||||
Segment
EBITDA Margin
|
(15 | )% | 18 | % | (33 | )% |
·
|
Segment Net Revenues for
the nine months ended September 30, 2008 decreased by 9%, compared to the
nine months ended September 30, 2007. Spot revenues decreased by 10%,
primarily due to the comparable period having benefitted from the receipt
of an estimated US$ 16.5 million of political advertising generated from
the parliamentary elections held on September 30,
2007. Non-spot revenues decreased by 2%, with the comparable
period also including US$ 1.5 million of political
advertising. Political advertising in connection with the
election of the Mayor of Kiev on May 25, 2008 contributed US$ 2.2 million
to Segment Net Revenues for the nine months ended September 30,
2008.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2008 decreased by 177% compared to the
nine months ended September 30, 2007, resulting in an EBITDA margin loss
of (15)% compared to an 18% Segment EBITDA margin in the nine months ended
September 30, 2007.
|
For
the Nine Months Ended September 30,
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
KINO:
Target (15-50 national) prime time audience share
|
0.5 | % | 0.6 | % | (0.1 | )% | ||||||
CITI:
Target (15-50 Kiev) prime time audience share
|
1.4 | % | 2.0 | % | (0.6 | )% |
UKRAINE
(KINO, CITI) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 412 | $ | 305 | 35.1 | % | ||||||
Non-spot
revenues
|
649 | 511 | 27.0 | % | ||||||||
Segment
Net Revenues
|
$ | 1,061 | $ | 816 | 30.0 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 1,061 | $ | 816 | 30.0 | % | ||||||
Non-broadcast
operations
|
- | - | - | |||||||||
Segment
Net Revenues
|
$ | 1,061 | $ | 816 | 30.0 | % | ||||||
Segment
EBITDA
|
$ | (1,203 | ) | $ | (1,339 | ) | 10.2 | % | ||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (1,203 | ) | $ | (1,339 | ) | 10.2 | % | ||||
Non-broadcast
operations
|
- | - | - | |||||||||
Segment
EBITDA
|
$ | (1,203 | ) | $ | (1,339 | ) | 10.2 | % | ||||
Segment
EBITDA Margin
|
(113 | )% | (164 | )% | 51 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2008 increased by 30%, compared to
the three months ended September 30, 2007. Spot revenues increased by
35%. Non-spot revenues increased by
27%.
|
·
|
Segment EBITDA losses
for the three months ended September 30, 2008 decreased by 10%, compared
to the three months ended September 30,
2007.
|
UKRAINE
(KINO, CITI) SEGMENT FINANCIAL INFORMATION
|
||||||||||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Spot
revenues
|
$ | 1,424 | $ | 783 | 81.9 | % | ||||||
Non-spot
revenues
|
1,939 | 1,085 | 78.7 | % | ||||||||
Segment
Net Revenues
|
$ | 3,363 | $ | 1,868 | 80.0 | % | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | 3,363 | $ | 1,868 | 80.0 | % | ||||||
Non-broadcast
operations
|
- | - | - | |||||||||
Segment
Net Revenues
|
$ | 3,363 | $ | 1,868 | 80.0 | % | ||||||
Segment
EBITDA
|
$ | (3,464 | ) | $ | (5,511 | ) | 37.1 | % | ||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (3,464 | ) | $ | (5,511 | ) | 37.1 | % | ||||
Non-broadcast
operations
|
- | - | - | |||||||||
Segment
EBITDA
|
$ | (3,464 | ) | $ | (5,511 | ) | 37.1 | % | ||||
Segment
EBITDA Margin
|
(103 | )% | (295 | )% | 192 | % |
·
|
Segment Net Revenues for
the nine months ended September 30, 2008 increased by 80%, compared to the
nine months ended September 30, 2007. Spot revenues increased by
82%. Non-spot revenues increased by 79%, primarily due to
increased program sponsorship.
|
·
|
Segment EBITDA
losses for the nine
months ended September 30, 2008 decreased by 37%, compared to the nine
months ended September 30, 2007.
|
For
the Three Months Ended September 30, (US$ 000’s)
|
For
the Nine Months Ended September 30, (US$ 000’s)
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Production
expenses
|
$ | 45,113 | $ | 27,257 | $ | 142,353 | $ | 95,590 | ||||||||
Program
amortization
|
51,929 | 38,652 | 167,052 | 119,445 | ||||||||||||
Cost
of programming
|
$ | 97,042 | $ | 65,909 | $ | 309,405 | $ | 215,035 |
|
·
|
US$
1.5 million in programming costs from our Bulgaria operations that were
acquired on August 1, 2008;
|
|
·
|
US$
3.1 million of additional programming costs from our Croatia
operations;
|
|
·
|
US$
9.8 million of additional programming costs from our Czech Republic
operations.
|
|
·
|
US$
10.8 million of additional programming costs from our Romania
operations;
|
|
·
|
US$
3.6 million of additional programming costs from our Slovak Republic
operations;
|
|
·
|
US$
0.3 million of additional programming costs from our Slovenia
operations;
|
|
·
|
US$
2.1 million of additional programming costs from our Ukraine (STUDIO 1+1)
operations, which included US$ 1.2 million of write offs;
and
|
|
·
|
US$
(0.1) million of reduction in programming costs from our Ukraine (KINO,
CITI) operations.
|
|
·
|
US$
1.5 million in programming costs from our Bulgaria operations that were
acquired on August 1, 2008;
|
|
·
|
US$
7.9 million of additional programming costs from our Croatia
operations;
|
|
·
|
US$
28.8 million of additional programming costs from our Czech Republic
operations;
|
|
·
|
US$
26.0 million of additional programming costs from our Romania
operations;
|
|
·
|
US$
12.9 million of additional programming costs from our Slovak Republic
operations;
|
|
·
|
US$
6.1 million of additional programming costs from our Slovenia
operations;
|
|
·
|
US$
12.0 million of additional programming costs from our Ukraine (STUDIO 1+1)
operations, which included US $ 5.2 million of write offs compared to US$
2.7 million in the comparable period;
and
|
|
·
|
US$
(0.8) million of reduction in programming costs from our Ukraine (KINO,
CITI) operations.
|
For
the Three Months Ended September 30, (US$ 000’s)
|
For
the Nine Months Ended September 30, (US$ 000’s)
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Program
amortization:
|
||||||||||||||||
Bulgaria
(TV2, RING TV) (1)
|
$ | 645 | $ | - | $ | 645 | $ | - | ||||||||
Croatia
(NOVA TV)
|
4,570 | 3,142 | 15,374 | 13,777 | ||||||||||||
Czech
Republic (TV NOVA, NOVA SPORT NOVA CINEMA)
|
14,480 | 6,730 | 41,563 | 20,581 | ||||||||||||
Romania
(2)
|
10,623 | 8,314 | 36,640 | 27,649 | ||||||||||||
Slovak
Republic (TV MARKIZA)
|
5,217 | 4,391 | 15,998 | 10,567 | ||||||||||||
Slovenia
(POP TV and KANAL A)
|
2,930 | 2,342 | 8,887 | 6,784 | ||||||||||||
Ukraine
(STUDIO 1+1)
|
12,940 | 13,076 | 46,250 | 37,566 | ||||||||||||
Ukraine
(KINO, CITI)
|
524 | 657 | 1,695 | 2,521 | ||||||||||||
$ | 51,929 | $ | 38,652 | $ | 167,052 | $ | 119,445 | |||||||||
Cash
paid for programming:
|
||||||||||||||||
Bulgaria
(TV2, RING TV) (1)
|
$ | 1,202 | $ | - | $ | 1,202 | $ | - | ||||||||
Croatia
(NOVA TV)
|
6,058 | 5,484 | 21,119 | 16,391 | ||||||||||||
Czech
Republic (TV NOVA, NOVA SPORT, NOVA CINEMA)
|
7,542 | 6,814 | 26,781 | 17,662 | ||||||||||||
Romania
(2)
|
25,680 | 19,875 | 57,075 | 42,852 | ||||||||||||
Slovak
Republic (TV MARKIZA)
|
4,718 | 3,585 | 14,956 | 11,750 | ||||||||||||
Slovenia
(POP TV and KANAL A)
|
2,580 | 3,568 | 8,536 | 8,220 | ||||||||||||
Ukraine
(STUDIO 1+1)
|
11,900 | 16,509 | 34,053 | 43,023 | ||||||||||||
Ukraine
(KINO, CITI)
|
187 | 375 | 716 | 1,537 | ||||||||||||
$ | 59,867 | $ | 56,210 | $ | 164,438 | $ | 141,435 |
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Bulgaria
(1)
|
$ | 462 | $ | - | nm(2 | ) | ||||||
Croatia
|
8,525 | 7,055 | 20.8 | % | ||||||||
Czech
Republic
|
72,602 | 51,140 | 42.0 | % | ||||||||
Romania
|
59,281 | 44,414 | 33.5 | % | ||||||||
Slovak
Republic
|
24,795 | 20,284 | 22.2 | % | ||||||||
Slovenia
|
14,231 | 11,545 | 23.3 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
20,052 | 39,582 | (49.3 | )% | ||||||||
Ukraine
(KINO, CITI)
|
1,061 | 816 | 30.0 | % | ||||||||
Total
Consolidated Net Revenues
|
$ | 201,009 | $ | 174,836 | 15.0 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Bulgaria
(1)
|
$ | 462 | $ | - | nm(2 | ) | ||||||
Croatia
|
38,153 | 24,701 | 54.5 | % | ||||||||
Czech
Republic
|
270,730 | 183,203 | 47.8 | % | ||||||||
Romania
|
197,119 | 135,978 | 45.0 | % | ||||||||
Slovak
Republic
|
88,126 | 68,615 | 28.4 | % | ||||||||
Slovenia
|
58,392 | 44,309 | 31.8 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
73,525 | 80,358 | (8.5 | )% | ||||||||
Ukraine
(KINO, CITI)
|
3,363 | 1,868 | 80.0 | % | ||||||||
Total
Consolidated Net Revenues
|
$ | 729,870 | $ | 539,032 | 35.4 | % |
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Operating
costs
|
$ | 38,727 | $ | 27,166 | 42.6 | % | ||||||
Cost
of programming
|
97,042 | 65,909 | 47.2 | % | ||||||||
Depreciation
of station property, plant and equipment
|
14,227 | 8,768 | 62.3 | % | ||||||||
Amortization
of broadcast licenses and other intangibles
|
10,201 | 6,595 | 54.7 | % | ||||||||
Total
Consolidated Cost of Revenues
|
$ | 160,197 | $ | 108,438 | 47.7 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Operating
costs
|
$ | 109,034 | $ | 83,767 | 30.2 | % | ||||||
Cost
of programming
|
309,405 | 215,035 | 43.9 | % | ||||||||
Depreciation
of station property, plant and equipment
|
39,745 | 23,347 | 70.2 | % | ||||||||
Amortization
of broadcast licenses and other intangibles
|
26,055 | 16,922 | 54.0 | % | ||||||||
Total
Consolidated Cost of Revenues
|
$ | 484,239 | $ | 339,071 | 42.8 | % |
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Bulgaria
|
$ | 773 | $ | - | nm(1 | ) | ||||||
Croatia
|
2,697 | 2,691 | 0.2 | % | ||||||||
Czech
Republic
|
6,794 | 5,595 | 21.4 | % | ||||||||
Romania
|
4,054 | 3,224 | 25.7 | % | ||||||||
Slovak
Republic
|
2,891 | 2,279 | 26.9 | % | ||||||||
Slovenia
|
2,107 | 1,821 | 15.7 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
3,162 | 1,814 | 74.3 | % | ||||||||
Ukraine
(KINO, CITI)
|
305 | 185 | 64.9 | % | ||||||||
Total
Consolidated Station Selling, General and Administrative
Expenses
|
$ | 22,783 | $ | 17,609 | 29.4 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Bulgaria
|
$ | 773 | $ | - | - | |||||||
Croatia
|
6,001 | 6,430 | (6.7 | )% | ||||||||
Czech
Republic
|
18,795 | 15,596 | 20.5 | % | ||||||||
Romania
|
11,339 | 8,568 | 32.3 | % | ||||||||
Slovak
Republic
|
7,842 | 6,539 | 19.9 | % | ||||||||
Slovenia
|
6,038 | 5,293 | 14.1 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
9,510 | 5,698 | 66.9 | % | ||||||||
Ukraine
(KINO, CITI)
|
906 | 965 | (6.1 | )% | ||||||||
Total
Consolidated Station Selling, General and Administrative
Expenses
|
$ | 61,204 | $ | 49,089 | 24.7 | % |
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ | 10,166 | $ | 18,902 | (46.2 | )% | ||||||
Stock-based
compensation
|
1,736 | 1,494 | 16.2 | % | ||||||||
Total
Corporate Operating Costs
|
$ | 11,902 | $ | 20,396 | (41.6 | )% |
·
|
decreased
legal and professional fees as a result of the conclusion of legal
proceedings in respect of our Ukraine and Croatia operations;
and
|
·
|
decreased
business development expenses incurred; partially offset
by
|
·
|
the
increase in salary and travel costs following the appointment of Adrian
Sarbu as our Chief Operating Officer in October 2007;
and
|
·
|
increased
corporate headcount following our establishment of a centralized planning
and development function to manage our initiatives to improve operational
efficiencies.
|
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ | 30,087 | $ | 38,515 | (21.9 | )% | ||||||
Stock-based
compensation
|
5,540 | 4,098 | 35.2 | % | ||||||||
Total
Corporate Operating Costs
|
$ | 35,627 | $ | 42,613 | (16.4 | )% |
·
|
decreased
legal and professional fees as a result of the conclusion of legal
proceedings in respect of our Ukraine and Croatia operations;
and
|
·
|
decreased
business development expenses.
|
·
|
the
increase in salary and travel costs following the appointment of Adrian
Sarbu as our Chief Operating Officer in October 2007;
and
|
·
|
increased
corporate headcount following our establishment of a centralized planning
and development function to manage our initiatives to improve operational
efficiencies.
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Operating
Income
|
$ | 6,127 | $ | 28,393 | (78.4 | %) |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Operating
Income
|
$ | 148,800 | $ | 108,259 | 37.5 | % |
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Interest
income
|
$ | 2,127 | $ | 1,180 | 80.3 | % | ||||||
Interest
expense
|
(17,947 | ) | (11,883 | ) | (51.0 | )% | ||||||
Foreign
currency exchange gain / (loss), net
|
4,969 | (23,300 | ) | 121.3 | % | |||||||
Change
in fair value of derivatives
|
9,868 | (8,555 | ) | 215.3 | % | |||||||
Other
income
|
290 | 44 | 559.1 | % | ||||||||
Provision
for income taxes
|
(20,833 | ) | (131 | ) | (15,803 | )% | ||||||
Minority
interest in income of consolidated subsidiaries
|
644 | (4,511 | ) | 114.3 | % | |||||||
Currency
translation adjustment, net
|
(217,905 | ) | 100,470 | 316.9 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2008
|
2007
|
Movement
|
||||||||||
Interest
income
|
$ | 8,088 | $ | 4,326 | 87.0 | % | ||||||
Interest
expense
|
(50,337 | ) | (42,717 | ) | (17.8 | )% | ||||||
Foreign
currency exchange loss, net
|
(5,580 | ) | (28,552 | ) | 80.5 | % | ||||||
Change
in fair value of derivatives
|
(13,671 | ) | 3,497 | (490.9 | )% | |||||||
Other
income / (expense)
|
1,615 | (746 | ) | 316.5 | % | |||||||
Provision
for income taxes
|
(19,410 | ) | (18,609 | ) | (4.3 | )% | ||||||
Minority
interest in income of consolidated subsidiaries
|
(1,761 | ) | (9,881 | ) | 82.2 | % | ||||||
Currency
translation adjustment, net
|
67,141 | 80,967 | (17.1 | )% | ||||||||
Obligation
to repurchase shares
|
488 | - |
nm
|
September
30,
2008
|
December
31,
2007
|
Movement
|
||||||||||
Current
assets
|
$ | 598,102 | $ | 529,824 | 12.9 | % | ||||||
Non-current
assets
|
2,388,844 | 1,808,611 | 32.1 | % | ||||||||
Current
liabilities
|
243,405 | 232,770 | 4.6 | % | ||||||||
Non-current
liabilities
|
1,199,101 | 682,703 | 75.6 | % | ||||||||
Minority
interests in consolidated subsidiaries
|
98,296 | 23,155 | 324.5 | % | ||||||||
Shareholders’
equity
|
$ | 1,446,144 | $ | 1,399,807 | 3.3 | % |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||
2008
|
2007
|
|||||||
Net
cash generated from continuing operating activities
|
$ | 170,965 | $ | 95,889 | ||||
Net
cash used in continuing investing activities
|
(459,099 | ) | (188,463 | ) | ||||
Net
cash received from financing activities
|
386,079 | 136,446 | ||||||
Net
cash used in discontinued operations – operating
activities
|
(1,973 | ) | (2,164 | ) | ||||
Net
increase in cash and cash equivalents
|
$ | 82,810 | $ | 46,665 |
·
|
payment
of US$ 223.2 million in connection with our acquisition of an additional
30.0% stake in the Studio 1+1 group including acquisition costs (for
further information, see Item 1, Note 3, “Acquisitions and Disposals:
Ukraine (Studio 1+1)”);
|
·
|
Total
payments of US$ 146.8 million in connection with our acquisition of
Bulgarian operations, including acquisition costs (for further
information, see Item 1, Note 3, “Acquisitions and Disposals:
Bulgaria”);
|
·
|
payments
of RON 47.2 million (approximately US$ 20.6 million at the date of
payment) in connection with our acquisition of the assets of Radio Pro
(for further information, see Item 1, Note 3, “Acquisitions and Disposals:
Romania”);
|
·
|
payments
of US$ 9.9 million in connection with our acquisition of Jyxo and Blog
(for further information, see Item 1, Note 3, “Acquisitions and Disposals:
Czech Republic”) and
|
·
|
capital
expenditures of US$ 59.6 million.
|
Contractual
Obligations
|
Payments
due by period (US$ 000’s)
|
|||||||||||||||||||
Total
|
Less
than 1 year
|
1-3
years
|
3-5
years
|
More
than 5 years
|
||||||||||||||||
Long-Term
Debt – principal
|
$ | 1,060,064 | $ | 18,395 | $ | 1,700 | $ | 825,424 | $ | 214,545 | ||||||||||
Long-Term
Debt – interest
|
276,820 | 73,927 | 118,992 | 74,017 | 9,884 | |||||||||||||||
Capital
Lease Obligations
|
7,323 | 1,439 | 1,438 | 1,325 | 3,121 | |||||||||||||||
Operating
Leases
|
12,456 | 5,505 | 5,454 | 1,214 | 283 | |||||||||||||||
Unconditional
Purchase Obligations
|
195,821 | 145,086 | 24,591 | 22,421 | 3,723 | |||||||||||||||
Other
Long-Term Obligations
|
2,112 | 1,862 | 250 | - | - | |||||||||||||||
FIN
48 obligations
|
2,172 | 426 | 1,746 | - | - | |||||||||||||||
Obligation
to purchase Ukraine (Studio 1+1) minority interest
|
109,100 | 109,100 | - | - | - | |||||||||||||||
Deferred
consideration
|
7,139 | 5,573 | 1,566 | - | - | |||||||||||||||
Total
Contractual Obligations
|
$ | 1,673,007 | $ | 361,313 | $ | 155,737 | $ | 924,401 | $ | 231,556 |
September
30, 2008
(US$
000’s)
|
||||||||
Corporate
|
(1 | ) – (4) | $ | 1,039,969 | ||||
Czech
Republic operations
|
(5 | ) – (7) | 14,497 | |||||
Slovak
Republic operations
|
(8)
|
3,898 | ||||||
Slovenia
operations
|
(9)
|
- | ||||||
Ukraine
(KINO, CITI) operations
|
(10)
|
1,700 | ||||||
Total
|
$ | 1,060,064 |
(1)
|
As
at September 30, 2008 we had EUR 395.0 million (approximately US$ 565.0
million) of Senior Notes outstanding, comprising EUR 245.0 million
(approximately US$ 350.4 million) of 8.25% senior notes due May 2012 (the
“Fixed Rate Notes”) and EUR 150.0 million (approximately US$ 214.6
million) of floating rate Senior Notes due May 2014, (the “Floating Rate
Notes”, collectively the “Senior Notes”) which bear interest at six-month
Euro Inter-Bank Offered Rate (“EURIBOR”) plus 1.625% (6.504% was
applicable at September 30, 2008).
|
(2)
|
As
at September 30, 2008 we had US$ 475.0 million of 3.50% Convertible Notes
outstanding that mature on March 15, 2013 (the “Convertible
Notes”). Interest is payable semi-annually in arrears on each
March 15 and September 15.
|
(3)
|
On
July 21, 2006, we entered into a five-year revolving loan agreement for
EUR 100.0 million (approximately US$ 143.0 million) arranged
by the European Bank for Reconstruction and Development (“EBRD”
and the “EBRD Loan”) and on August 22, 2007, we entered into a second
revolving loan agreement for EUR 50.0 million (approximately US$ 71.5
million) also arranged by EBRD (collectively the “EBRD Loan”). ING Bank
N.V. (“ING”) and Ceska Sporitelna, a.s. (“CS”) are each participating in
the EBRD Loan for EUR 37.5 million.
|
(4)
|
We
have an uncommitted multicurrency overdraft facility for EUR 10.0 million
(approximately US$ 14.3 million) from Bank Mendes Gans (“BMG”), a
subsidiary of ING Bank N.V. as part of a cash pooling arrangement with
BMG. This arrangement enables us to receive credit across the group in
respect of cash balances which our subsidiaries in the Netherlands, the
Czech Republic, Romania, the Slovak Republic and Slovenia deposit with
BMG. Cash deposited by our subsidiaries with BMG is pledged as security
against the drawings of other subsidiaries up to the amount
deposited. As at September 30, 2008, the full EUR 10.0 million
(approximately US$ 14.3 million) facility was available to be drawn.
Interest is payable at the prevailing money market rate plus 2.00% on the
drawn amount. At September 30, 2008, our Slovak Republic operations had
drawings of SKK 82.3 million (approximately US$ 3.9 million) against
deposits made by our subsidiary in the
Netherlands.
|
(5)
|
CET
21 has a credit facility of CZK 1.2 billion (approximately US$ 69.6
million) with Ceska Sporitelna, a.s. (“CS”). The final
repayment date is December 31, 2010. This facility may, at the
option of CET 21, be drawn in CZK, US$ or EUR and bears interest at the
three-month, six-month or twelve-month London Inter-Bank Offered Rate
(“LIBOR”), EURIBOR or Prague Inter-Bank Offered Rate (“PRIBOR”) plus
1.65%. A utilization interest of 0.25% is payable on the
undrawn portion of this facility. This percentage decreases to
0.125% of the undrawn portion if more than 50% of the loan is drawn. This
facility is secured by a pledge of receivables, which are also subject to
a factoring arrangement with Factoring Ceska Sporitelna, a.s.(“FCS”), a
subsidiary of CS.
|
(6)
|
CET
21 has a working capital credit facility of CZK 250.0 million
(approximately US$ 14.5 million) with CS, which matures on December 31,
2010. This working capital facility bears interest at the
three-month PRIBOR rate plus 1.65%. This facility is secured by a pledge
of receivables, which are also subject to a factoring arrangement with
FCS. As at September 30, 2008, the full CZK 250.0 million
(approximately US$ 14.5 million) was drawn under this facility bearing
interest at an aggregate 5.63% (the applicable three-month PRIBOR rate at
September 30, 2008 was 3.98%).
|
(7)
|
As
at September 30, 2008, there were no drawings under a CZK 300.0 million
(approximately US$ 17.4 million) factoring facility with
FCS. This facility is available until June 30, 2011 and bears
interest at the rate of one-month PRIBOR plus 1.40% for the period that
actively assigned accounts receivable are
outstanding.
|
(8)
|
As
at September 30, 2008, one of our Slovakian subsidiares had drawn
approximately SKK 82.3 million (approximately US$ 3.9 million) on the BMG
cash pool.
|
(9)
|
A
revolving five-year facility agreement was entered into by Pro Plus for up
to EUR 37.5 million (approximately US$ 53.6 million) in aggregate
principal amount with ING Bank N.V., Nova Ljubljanska Banka d.d.,
Ljubljana and Bank Austria Creditanstalt d.d., Ljubljana. The
facility availability amortizes by 10.0% each year for four years
commencing one year after signing, with 60.0% repayable after five
years. This facility is secured by a pledge of the bank
accounts of Pro Plus, the assignment of certain receivables, a pledge of
our interest in Pro Plus and a guarantee of our wholly-owned subsidiary
CME Media Enterprises B.V. Loans drawn under this facility will
bear interest at a rate of EURIBOR for the period of drawing plus a margin
of between 2.10% and 3.60% that varies according to the ratio of
consolidated net debt to consolidated broadcasting cash flow for Pro
Plus. As at September 30, 2008, EUR 26.3 million (approximately
US$ 37.5 million) was available for drawing under this
revolving facility; there were no drawings
outstanding.
|
(10)
|
Our
Ukraine (KINO, CITI) operations have entered into a number of three-year
unsecured loans with Glavred-Media, LLC, the minority shareholder in
Ukrpromtorg. As at September 30, 2008, the total value of loans
drawn was US$ 1.7 million. The loans are repayable between
August 2009 and December 2009 and bear interest at
9.0%.
|
For
the Three Months Ended
|
For
the Nine Months Ended
|
|||||||||||||||||||||||
US$ million
|
As
reported
|
Impact
of Adoption
|
As
Adjusted
|
As
reported
|
Impact
of Adoption
|
As
Adjusted
|
||||||||||||||||||
Consolidated
Statement of Operations:
|
||||||||||||||||||||||||
Interest
expense
|
(17.9 | ) | (4.2 | ) | (22.1 | ) | (50.3 | ) | (9.4 | ) | (59.7 | ) | ||||||||||||
As
at September 30, 2008
|
||||||||||||||||||||||||
US$ million
|
As
reported
|
Impact
of Adoption
|
As
Adjusted
|
|||||||||||||||||||||
Consolidated
balance sheet:
|
||||||||||||||||||||||||
Other
current assets
|
112.9 | (0.7 | ) | 112.2 | ||||||||||||||||||||
Other
non-current assets
|
22.7 | (1.7 | ) | 21.0 | ||||||||||||||||||||
Senior
Debt
|
1,040.0 | 101.0 | 1,141.0 | |||||||||||||||||||||
Additional
paid-in capital
|
1,017.4 | 108.1 | 1,125.5 | |||||||||||||||||||||
Retained
Earnings
|
66.3 | (9.4 | ) | 56.9 |
Expected
Maturity Dates
|
2008
|
2009
|
2010
|
2011
|
2012
|
Thereafter
|
||||||||||||||||||
Total
debt in Euro (000's)
|
||||||||||||||||||||||||
Fixed
rate
|
- | - | - | - | 245,000 | - | ||||||||||||||||||
Average
interest rate (%)
|
- | - | - | - | 8.25 | % | - | |||||||||||||||||
Variable
rate
|
- | - | - | - | - | 150,000 | ||||||||||||||||||
Average
interest rate (%)
|
- | - | - | - | - | 6.5 | % | |||||||||||||||||
Total
debt in US$ (000's)
|
||||||||||||||||||||||||
Fixed
rate
|
- | 1,700 | - | - | - | 475,000 | ||||||||||||||||||
Average
interest rate (%)
|
- | 9.00 | % | - | - | - | 3.5 | % | ||||||||||||||||
Total
debt in CZK (000's)
|
||||||||||||||||||||||||
Fixed
rate
|
- | - | - | - | - | - | ||||||||||||||||||
Average
interest rate (%)
|
- | - | - | - | - | - | ||||||||||||||||||
Variable
rate
|
250,000 | - | - | - | - | - | ||||||||||||||||||
Average
interest rate (%)
|
5.63 | % | - | - | - | - | - |
Yearly
interest charge if interest rates increase by (US$ 000s):
|
||||||||||||||||||||||||||||
Value
of Debt as at September 30, 2008 (US$ 000's)
|
Interest
Rate as at September 30, 2008
|
Yearly
Interest Charge
(US$
000’s)
|
1 | % | 2 | % | 3 | % | 4 | % | 5 | % | ||||||||||||||||
214,545
(EUR
150.0 million)
|
6.50 | % | 13,954 | 16,099 | 18,244 | 20,389 | 22,534 | 24,679 | ||||||||||||||||||||
14,497
(CZK
250.0 million)
|
5.63 | % | 816 | 961 | 1,106 | 1,251 | 1,396 | 1,541 | ||||||||||||||||||||
Total
|
14,770 | 17,060 | 19,350 | 21,640 | 23,930 | 26,220 |
·
|
additional
demands placed on our senior management, who are also responsible for
managing our existing operations;
|
·
|
increased
overall operating complexity of our business, requiring greater personnel
and other resources;
|
·
|
difficulties
of expanding beyond our core expertise in the event that we acquire
ancillary businesses;
|
·
|
significant
initial cash expenditures to acquire and integrate new businesses;
and
|
·
|
in
the event that debt is incurred to finance acquisitions, additional debt
service costs related thereto as well as limitations that may arise under
our Senior Notes and the EBRD Loan.
|
10.9
|
Employment
Agreement between CME Development Corporation and Michael Garin, dated
March 30, 2004.
|
10.10
|
Master
Share Purchase Agreement between CME Media Enterprises B.V. and Top Tone
Media Holdings Limited, dated July 28, 2008.
|
10.11
|
TV2
Group Shareholders Agreement between CME Media Enterprises B.V., Top Tone
Media Holdings Limited and Equip Limited, dated July 28,
2008.
|
31.01
|
Sarbanes-Oxley
Certification s. 302 CEO, dated October 29, 2008.
|
31.02
|
Sarbanes-Oxley
Certification s. 302 CFO, dated October 29, 2008.
|
32.01
|
Sarbanes-Oxley
Certification – CEO and CFO, dated October 29, 2008. (furnished
only)
|
Date:
October 29, 2008.
|
/s/ Michael Garin
Michael
Garin
Chief
Executive Officer
(Duly
Authorized Officer)
|
Date:
October 29, 2008.
|
/s/ Wallace Macmillan
Wallace
Macmillan
Chief
Financial Officer
(Principal
Financial Officer and Accounting
Officer)
|
Employment
Agreement between CME Development Corporation and Michael Garin, dated
March 30, 2004.
|
|
Master
Share Purchase Agreement between CME Media Enterprises B.V. and Top Tone
Media Holdings Limited, dated July 28, 2008.
|
|
TV2
Group Shareholders Agreement between CME Media Enterprises B.V., Top Tone
Media Holdings Limited and Equip Limited, dated July 28,
2008.
|
|
Sarbanes-Oxley
Certification s. 302 CEO, dated October 29, 2008.
|
|
Sarbanes-Oxley
Certification s. 302 CFO, dated October 29, 2008.
|
|
Sarbanes-Oxley
Certification – CEO and CFO, dated October 29, 2008. (furnished
only).
|