CENTRAL EUROPEAN MEDIA ENTERPRISES
REPORTS THIRD QUARTER 2007 RESULTS
THIRD QUARTER
- Net Revenues Increase 55% -
- Operating Income Grows $28.4 million to $35.0 million -
- Segment(1) EBITDA Increases 147% -
NINE MONTHS
- Net Revenues Increase 39% -
- Operating Income Grows $54.0 million to $120.8 million -
- Segment(1) EBITDA Increases 57% -
HAMILTON, BERMUDA, November 1, 2007 – Central European Media Enterprises Ltd. (CME) (NASDAQ/Prague Stock Exchange: CETV) today announced financial results for the quarter and nine months ended September 30, 2007.
Net revenues for the third quarter of 2007 increased 55% to $174.8 million, compared to the third quarter of 2006. Operating income for the quarter increased $28.4 million to $35.0 million. Net income from continuing operations decreased $25.0 million to a loss of $(18.8) million, and fully diluted earnings per share in respect of continuing operations for the quarter decreased to a loss of $(0.45) from $0.15. Segment(1) EBITDA for the quarter increased 147% to $64.2 million, compared to the third quarter of 2006.
Net revenues for the nine months ended September 30, 2007 increased 39% to $539.0 million, compared to the nine months ended September 30, 2006. Operating income increased $54.0 million to $120.8 million. Net income from continuing operations increased $16.5 million to $15.6 million, and fully diluted earnings per share in respect of continuing operations increased to $0.37 from a loss of $(0.02). Our consolidated results for the nine months ended September 30, 2007 include Markiza in the Slovak Republic, which was not consolidated until January 23, 2006. Segment(1) EBITDA for the nine months ended September 30, 2007 increased 57% to $191.1 million, compared to the nine months ended September 30, 2006.
Michael Garin, Chief Executive Officer of CME, said “Our third quarter results highlight the continued strength of our operations across all markets. I am particularly pleased by the strong performance of our Ukrainian operations. We have recently increased our 2007 guidance and look forward to continuing our position as the fastest growing multinational broadcaster.”
- continued -
| (1) | Segment Data, Segment Net Revenues and Segment EBITDA are all non-US GAAP measures. For further details, including a reconciliation to the most directly comparable US GAAP financial measures, see ‘Reconciliation Between Consolidated Statements of Operations and Segment Data (non-US GAAP)’ below. We define Segment EBITDA margin as Segment EBITDA expressed as a percentage of Segment Net Revenue. |
Consolidated Results for the Three Months Ended September 30, 2007
Consolidated Net Revenues for the three months ended September 30, 2007 increased by 55% to $174.8 million from $112.5 million for the three months ended September 30, 2006. Operating income for the quarter was $35.0 million compared with $6.6 million for the three months ended September 30, 2006. Net loss for the quarter was $(18.8) million compared to net income of $3.9 million for the three months ended September 30, 2006. Fully diluted earnings per share for the three months ended September 30, 2007 was a loss of $(0.45), decreasing $0.54 compared to the three months ended September 30, 2006.
Headline Consolidated Results for the three months ended September 30, 2007 and 2006 were:
| | | CONSOLIDATED RESULTS (Unaudited) | |
| | | For the Three Months Ended September 30, (US $000’s) | |
| | | 2007 | | | 2006 | | | $ change | | | % change | |
| Net Revenues | | $ | 174,836 | | | $ | 112,482 | | | $ | 62,354 | | | | 55 | % |
| Operating income | | $ | 34,950 | | | $ | 6,571 | | | $ | 28,379 | | | | 432 | % |
| Net (loss) / income from continuing operations | | $ | (18,763 | ) | | $ | 6,267 | | | $ | (25,030 | ) | | | (399 | )% |
| Net (loss) / income | | $ | (18,763 | ) | | $ | 3,934 | | | $ | (22,697 | ) | | | (577 | )% |
| Fully diluted (loss) / earnings per share from continuing operations | | $ | (0.45 | ) | | $ | 0.15 | | | $ | (0.60 | ) | | | (400 | )% |
| Fully diluted (loss) / earnings per share | | $ | (0.45 | ) | | $ | 0.09 | | | $ | (0.54 | ) | | | (600 | )% |
Consolidated Results for the Nine Months Ended September 30, 2007
Consolidated Net Revenues for the nine months ended September 30, 2007 increased by 39% to $539.0 million from $388.8 million for the nine months ended September 30, 2006. Operating income for the period was $120.8 million compared with $66.8 million for the nine months ended September 30, 2006. Net income for the nine months ended September 30, 2007 was $15.6 million compared to a net loss of $(5.8) million for the nine months ended September 30, 2006. Fully diluted earnings per share for the nine months ended September 30, 2007 was $0.37, increasing $0.51 compared to the nine months ended September 30, 2006.
Headline Consolidated Results for the nine months ended September 30, 2007 and 2006 were:
| | | CONSOLIDATED RESULTS (Unaudited) | |
| | | For the Nine Months Ended September 30, (US $000’s) | |
| | | 2007 | | | 2006 | | | $ change | | | % change | |
| Net Revenues | | $ | 539,032 | | | $ | 388,825 | | | $ | 150,207 | | | | 39 | % |
| Operating income | | $ | 120,785 | | | $ | 66,787 | | | $ | 53,998 | | | | 81 | % |
| Net income / (loss) from continuing operations | | $ | 15,577 | | | $ | (945 | ) | | $ | 16,522 | | | Nm | % |
| Net income / (loss) | | $ | 15,577 | | | $ | (5,808 | ) | | $ | 21,385 | | | | 368 | % |
| Fully diluted earnings / (loss) per share from continuing operations | | $ | 0.37 | | | $ | (0.02 | ) | | $ | 0.39 | | | Nm | % |
| Fully diluted earnings / (loss) per share | | $ | 0.37 | | | $ | (0.14 | ) | | $ | 0.51 | | | | 364 | % |
Segment(1) Results
We evaluate the performance of our operations based on Segment(1) Net Revenues and EBITDA (earnings before interest, taxes, depreciation and amortization).
Segment(1) Results for the Three Months Ended September 30, 2007
For the three months ended September 30, 2007, Total Segment(1) Net Revenues increased 55% to $174.8 million from $112.5 million for the three months ended September 30, 2006. Total Segment(1) EBITDA for the three months ended September 30, 2007 increased 147% to $64.2 million from $26.0 million for the three months ended September 30, 2006. Segment(1) EBITDA Margin for the three months ended September 30, 2007 was 37%, compared to 23% for the three months ended September 30, 2006.
Our Total Segment(1) Net Revenues and Total Segment(1) EBITDA for the three months ended September 30, 2007 and 2006 were:
| | | SEGMENT (1) RESULTS (Unaudited) | |
| | | For the Three Months Ended September 30, (US $000's) | |
| | | 2007 | | | 2006 | | | $ change | | | % change | |
| Segment Net Revenues – Broadcast Operations | | $ | 173,991 | | | $ | 111,931 | | | $ | 62,060 | | | | 55 | % |
| Segment Net Revenues – Non-Broadcast Operations | | $ | 845 | | | $ | 551 | | | $ | 294 | | | | 53 | % |
| Total Segment Net Revenues | | $ | 174,836 | | | $ | 112,482 | | | $ | 62,354 | | | | 55 | % |
| Segment EBITDA – Broadcast Operations | | $ | 65,805 | | | $ | 26,119 | | | $ | 39,686 | | | | 152 | % |
| Segment EBITDA – Non-Broadcast Operations | | $ | (1,653 | ) | | $ | (111 | ) | | $ | (1,542 | ) | | Nm | % |
| Total Segment EBITDA | | $ | 64,152 | | | $ | 26,008 | | | $ | 38,144 | | | | 147 | % |
| Segment EBITDA Margin | | | 37 | % | | | 23 | % | | | | | | | | |
Segment(1) Results for the Nine Months Ended September 30, 2007
For the nine months ended September 30, 2007, Total Segment(1) Net Revenues increased 38% to $539.0 million from $390.6 million for the nine months ended September 30, 2006. Total Segment(1) EBITDA for the nine months ended September 30, 2007 increased 57% to $191.1 million from $122.1 million for the nine months ended September 30, 2006. Segment(1) EBITDA Margin for the nine months ended September 30, 2007 was 35% compared to 31% for the nine months ended September 30, 2006.
| (1) | Segment Data, Segment Net Revenues and Segment EBITDA are all non-US GAAP measures. For further details, including a reconciliation to the most directly comparable US GAAP financial measures, see ‘Reconciliation Between Consolidated Statements of Operations and Segment Data (non-US GAAP)’ below. We define Segment EBITDA margin as Segment EBITDA expressed as a percentage of Segment Net Revenue. |
Our Total Segment(1) Net Revenues and Total Segment(1) EBITDA for the nine months ended September 30, 2007 and 2006 were:
| | | SEGMENT (1) RESULTS (Unaudited) | |
| | | For the Nine Months Ended September 30, (US $000's) | |
| | | 2007 | | | 2006 | | | $ change | | | % change | |
| Segment Net Revenues – Broadcast Operations | | $ | 536,964 | | | $ | 388,906 | | | $ | 148,052 | | | | 38 | % |
| Segment Net Revenues – Non-Broadcast Operations | | $ | 2,068 | | | $ | 1,680 | | | $ | 388 | | | | 23 | % |
| Total Segment Net Revenues | | $ | 539,032 | | | $ | 390,586 | | | $ | 148,446 | | | | 38 | % |
| Segment EBITDA – Broadcast Operations | | $ | 193,538 | | | $ | 122,035 | | | $ | 71,503 | | | | 59 | % |
| Segment EBITDA – Non-Broadcast Operations | | $ | (2,397 | ) | | $ | 44 | | | $ | (2,441 | ) | | Nm | % |
| Total Segment EBITDA | | $ | 191,141 | | | $ | 122,079 | | | $ | 69,062 | | | | 57 | % |
| Segment EBITDA Margin | | | 35 | % | | | 31 | % | | | | | | | | |
The Company will host a teleconference to discuss its third quarter 2007 results on Thursday, November 1, 2007 at 11:00 a.m. EST (3:00 p.m. GMT and 4:00 p.m. CET). The teleconference will refer to presentation slides which will be available on CME’s website www.cetv-net.com prior to the call.
To access the teleconference, please dial +1 973-321-1024 (U.S. and international callers) ten minutes prior to the start time. The conference call will be broadcast live via www.cetv-net.com. A replay of the teleconference will be available for two weeks following the call and can be accessed by dialing +1 973-341-3080 (U.S. and international callers), passcode: 9388828. A digital audio replay in mp3 format will also be archived on the Company’s website.
| (1) | Segment Data, Segment Net Revenues and Segment EBITDA are all non-US GAAP measures. For further details, including a reconciliation to the most directly comparable US GAAP financial measures, see ‘Reconciliation Between Consolidated Statements of Operations and Segment Data (non-US GAAP)’ below. We define Segment EBITDA margin as Segment EBITDA expressed as a percentage of Segment Net Revenue. |
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements, including the impact of competitive market dynamics and the political environment in Ukraine, the impact of legal proceedings in Croatia, the results of additional investment in Croatia and Ukraine, the implementation of an advertising sales strategy in the Czech Republic and cost reductions in the Czech and Slovak Republics, our ability to develop and implement multi-channel strategies generally, the growth of television advertising in our markets, the future economic conditions in our markets, future investments in television broadcast operations, the growth potential of advertising spending in our markets, and other business strategies and commitments. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the general regulatory environments where we operate and application of relevant laws and regulations, the renewals of broadcasting licenses, our ability to implement strategies regarding sales and multi-channel distribution, the rate of development of advertising markets in countries where we operate, our ability to acquire necessary programming and the ability to attract audiences, our ability to obtain additional frequencies and licenses, and general market, regulatory, political and economic conditions in these countries as well as in the United States and Western Europe.
This press release should be read in conjunction with our Quarterly Report on Form 10-Q for the three months and nine months ended September 30, 2007, which was filed with the Securities and Exchange Commission on November 1, 2007, and our Annual Report on Form 10-K for the year ended December 31, 2006, as amended by our Annual Report on Form 10-K/A which was filed with the Securities and Exchange Commission on April 30, 2007.
We make available, free of charge, on our website at http://www.cetv-net.com our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.
CME is a TV broadcasting company operating leading networks in six Central and Eastern European countries with an aggregate population of approximately 90 million people. The Company’s television stations are located in Croatia (Nova TV), Czech Republic (TV Nova, Galaxie Sport), Romania (PRO TV, Acasa, PRO Cinema, PRO TV International, Sport.ro), the Slovak Republic (Markíza), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International, Kino, Citi). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol “CETV”.
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For additional information, please visit www.cetv-net.com or contact:
Romana Tomasová, Director of Corporate Communications, Central European Media Enterprises +44 20 7430 5357 romana.tomasova@cme-net.com | Kate Tellier / Mike Smargiassi Brainerd Communicators, Inc. +1-212-986-6667 |
CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ 000’s, except share and per share data)
(Unaudited)
| | | For the Three Months Ended September 30 | |
| | | 2007 | | | 2006 | |
Net revenues | | $ | 174,836 | | | $ | 112,482 | |
| Operating costs | | | 27,166 | | | | 22,073 | |
| Cost of programming | | | 65,909 | | | | 47,920 | |
| Depreciation of station property, plant and equipment | | | 8,768 | | | | 6,080 | |
| Amortization of broadcast licenses and other intangibles | | | 6,595 | | | | 5,015 | |
Cost of revenues | | | 108,438 | | | | 81,088 | |
| Station selling, general and administrative expenses | | | 17,609 | | | | 16,481 | |
| Corporate operating costs (including non-cash stock-based compensation of $ 1.5 million and $ 1.0 million in the three months ended September 30, 2007 and 2006, respectively) | | | 13,839 | | | | 8,342 | |
Operating income | | | 34,950 | | | | 6,571 | |
| Interest expense, net | | | (10,703 | ) | | | (9,512 | ) |
| Foreign currency exchange (loss) / gain, net | | | (23,300 | ) | | | 6,018 | |
| Change in fair value of derivatives | | | (8,555 | ) | | | (881 | ) |
| Other expense | | | (6,513 | ) | | | (412 | ) |
(Loss) / income before provision for income taxes, minority interest, equity in income of unconsolidated affiliates and discontinued operations | | | (14,121 | ) | | | 1,784 | |
| Provision for income taxes | | | (131 | ) | | | (1,235 | ) |
(Loss) / income before minority interest, equity in income of unconsolidated affiliates and discontinued operations | | | (14,252 | ) | | | 549 | |
| Minority interest in income of consolidated subsidiaries | | | (4,511 | ) | | | (461 | ) |
| Gain on sale of unconsolidated affiliate | | | - | | | | 6,179 | |
Net (loss) / income from continuing operations | | | (18,763 | ) | | | 6,267 | |
| Loss from discontinued operations | | | - | | | | (2,333 | ) |
Net (loss) / income | | $ | (18,763 | ) | | $ | 3,934 | |
| | | | | | | | | |
| PER SHARE DATA: | | | | | | | | |
| Net (loss) / income per share | | | | | | | | |
| Continuing operations – Basic | | $ | (0.45 | ) | | $ | 0.15 | |
| Continuing operations – Diluted | | $ | (0.45 | ) | | $ | 0.15 | |
| Discontinued operations – Basic | | $ | 0.00 | | | $ | (0.06 | ) |
| Discontinued operations – Diluted | | $ | 0.00 | | | $ | (0.06 | ) |
| Net income – Basic | | $ | (0.45 | ) | | $ | 0.09 | |
| Net income – Diluted | | $ | (0.45 | ) | | $ | 0.09 | |
| | | | | | | | | |
| Weighted average common shares used in computing per share amounts (000s): | | | | | | | | |
| Basic | | | 41,489 | | | | 40,651 | |
| Diluted | | | 41,489 | | | | 41,188 | |
CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ 000’s, except share and per share data)
(Unaudited)
| | | For the Nine Months Ended September 30 | |
| | | 2007 | | | 2006 | |
Net revenues | | $ | 539,032 | | | $ | 388,825 | |
| Operating costs | | | 83,767 | | | | 71,087 | |
| Cost of programming | | | 215,035 | | | | 149,188 | |
| Depreciation of station property, plant and equipment | | | 23,347 | | | | 17,841 | |
| Amortization of broadcast licenses and other intangibles | | | 16,922 | | | | 13,967 | |
Cost of revenues | | | 339,071 | | | | 252,083 | |
| Station selling, general and administrative expenses | | | 49,089 | | | | 45,188 | |
| Corporate operating costs (including non-cash stock-based compensation of $ 4.1 million and $ 2.4 million in the nine months ended September 30, 2007 and 2006, respectively) | | | 30,087 | | | | 24,019 | |
| Impairment loss | | | - | | | | 748 | |
Operating income | | | 120,785 | | | | 66,787 | |
| Interest expense, net | | | (38,391 | ) | | | (28,173 | ) |
| Foreign currency exchange loss, net | | | (28,552 | ) | | | (25,469 | ) |
| Change in fair value of derivative | | | 3,497 | | | | (2,757 | ) |
| Other expense | | | (13,272 | ) | | | (793 | ) |
Income before provision for income taxes, minority interest, equity in income of unconsolidated affiliates and discontinued operations | | | 44,067 | | | | 9,595 | |
| Provision for income taxes | | | (18,609 | ) | | | (8,811 | ) |
Income before minority interest, equity in income of unconsolidated affiliates and discontinued operations | | | 25,458 | | | | 784 | |
| Minority interest in income of consolidated subsidiaries | | | (9,881 | ) | | | (7,178 | ) |
| Equity in loss of unconsolidated affiliates | | | - | | | | (730 | ) |
| Gain on sale of unconsolidated affiliate | | | - | | | | 6,179 | |
Net income / (loss) from continuing operations | | | 15,577 | | | | (945 | ) |
| Loss from discontinued operations | | | - | | | | (4,863 | ) |
Net income / (loss) | | $ | 15,577 | | | $ | (5,808 | ) |
| | | | | | | | | |
| PER SHARE DATA: | | | | | | | | |
| Net income per share | | | | | | | | |
| Continuing operations – Basic | | $ | 0.38 | | | $ | (0.02 | ) |
| Continuing operations – Diluted | | $ | 0.37 | | | $ | (0.02 | ) |
| Discontinued operations – Basic | | $ | 0.00 | | | $ | (0.12 | ) |
| Discontinued operations – Diluted | | $ | 0.00 | | | $ | (0.12 | ) |
| Net income – Basic | | $ | 0.38 | | | $ | (0.14 | ) |
| Net income – Diluted | �� | $ | 0.37 | | | $ | (0.14 | ) |
| | | | | | | | | |
| Weighted average common shares used in computing per share amounts (000s): | | | | | | | | |
| Basic | | | 41,077 | | | | 39,792 | |
| Diluted | | | 41,553 | | | | 39,792 | |
Segment Data
We manage our business on a geographic basis, and review the performance of each geographic segment using data that reflects 100% of operating and license company results. Our segments are comprised of Croatia, the Czech Republic, Romania, the Slovak Republic, Slovenia and our two businesses in Ukraine.
We evaluate the performance of our segments based on Segment EBITDA. Segment Net Revenues and Segment EBITDA include the results of certain entities (primarily our operations in the Slovak Republic) that were not consolidated until January 23, 2006.
Segment EBITDA is determined as segment net income/loss, which includes costs for program rights amortization, before interest, taxes, depreciation and amortization of broadcast licenses and other intangible assets. Items that are not allocated to our segments for purposes of evaluating their performance, and therefore are not included in Segment EBITDA, include:
| · | expenses presented as corporate expenses in our consolidated statements of operations; |
| · | stock-based compensation charges; |
| · | foreign currency exchange gains and losses; |
| · | changes in fair value of derivatives; and |
| · | certain unusual or infrequent items (e.g., gains and losses/impairments on assets or investments, gain on sale of unconsolidated affiliates). |
We use Segment EBITDA as a component in determining management bonuses.
Below is a table showing our Segment EBITDA by operation and a reconciliation of these figures to our consolidated results for the three months and the nine months ended September 30, 2007 and 2006:
Reconciliation between Consolidated Statements of Operations
and Segment Data (non-US GAAP)
| | | SEGMENT FINANCIAL INFORMATION | |
| | | For the Three Months Ended September 30, | |
| | | (US $000's) | |
| | | Segment Net Revenues (1) | | | Segment EBITDA | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Country | | | | | | | | | | | | |
| Croatia (NOVA TV) | | $ | 7,055 | | | $ | 4,288 | | | $ | (2,981 | ) | | $ | (4,558 | ) |
| Czech Republic (TV NOVA) | | | 51,140 | | | | 40,141 | | | | 25,989 | | | | 17,234 | |
| Romania (2) | | | 44,412 | | | | 29,298 | | | | 19,486 | | | | 11,719 | |
| Slovak Republic (MARKIZA TV) | | | 20,286 | | | | 13,895 | | | | 5,544 | | | | 2,408 | |
| Slovenia (POP TV and KANAL A) | | | 11,545 | | | | 9,101 | | | | 854 | | | | 1,225 | |
| Ukraine (STUDIO 1+1) | | | 39,582 | | | | 15,578 | | | | 16,599 | | | | (838 | ) |
| Ukraine (KINO, CITI) | | | 816 | | | | 181 | | | | (1,339 | ) | | | (1,182 | ) |
Total Segment Data | | $ | 174,836 | | | $ | 112,482 | | | $ | 64,152 | | | $ | 26,008 | |
| | | | | | | | | | | | | | | | | |
Reconciliation to Consolidated Statement of Operations: | | | | | | | | | | | | | | | | |
Consolidated Net Revenues / (Loss) / income before provision for income taxes, minority interest and discontinued operations | | $ | 174,836 | | | $ | 112,482 | | | $ | (14,121 | ) | | $ | 1,784 | |
| Corporate operating costs (including non-cash stock based compensation of $ 1.5 million and $ 1.0 million for the three months ended September 30, 2007 and 2006, respectively) | | | - | | | | - | | | | 13,839 | | | | 8,342 | |
| Depreciation of station assets | | | - | | | | - | | | | 8,768 | | | | 6,080 | |
| Amortization of broadcast licenses and other intangibles | | | - | | | | - | | | | 6,595 | | | | 5,015 | |
| Interest expense, net | | | - | | | | - | | | | 10,703 | | | | 9,512 | |
| Foreign currency exchange loss / (gain), net | | | - | | | | - | | | | 23,300 | | | | (6,018 | ) |
| Change in fair value of derivatives | | | - | | | | - | | | | 8,555 | | | | 881 | |
| Other expense | | | - | | | | - | | | | 6,513 | | | | 412 | |
Total Segment Data | | $ | 174,836 | | | $ | 112,482 | | | $ | 64,152 | | | $ | 26,008 | |
| | | | | | | | | | | | | | | | | |
| (1) All net revenues are derived from external customers. There are no inter-segmental revenues. | |
| (2) Romanian channels are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL and SPORT.RO. | |
| | | SEGMENT FINANCIAL INFORMATION | |
| | | For the Nine Months Ended September 30, | |
| | | (US $000's) | |
| | | Segment Net Revenues (1) | | | Segment EBITDA | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Country | | | | | | | | | | | | |
| Croatia (NOVA TV) | | $ | 24,701 | | | $ | 13,745 | | | $ | (9,800 | ) | | $ | (11,639 | ) |
| Czech Republic (TV NOVA) | | | 183,203 | | | | 137,002 | | | | 99,251 | | | | 59,569 | |
| Romania (2) | | | 135,978 | | | | 96,938 | | | | 57,152 | | | | 39,756 | |
| Slovak Republic (MARKIZA TV) | | | 68,615 | | | | 45,147 | | | | 23,012 | | | | 9,258 | |
| Slovenia (POP TV and KANAL A) | | | 44,309 | | | | 34,883 | | | | 12,243 | | | | 10,688 | |
| Ukraine (STUDIO 1+1) | | | 80,358 | | | | 62,118 | | | | 14,794 | | | | 16,183 | |
| Ukraine (KINO, CITI) (3) | | | 1,868 | | | | 754 | | | | (5,511 | ) | | | (1,736 | ) |
Total Segment Data | | $ | 539,032 | | | $ | 390,586 | | | $ | 191,141 | | | $ | 122,079 | |
| | | | | | | | | | | | | | | | | |
Reconciliation to Consolidated Statement of Operations: | | | | | | | | | | | | | | | | |
Consolidated Net Revenues / Income before provision for income taxes, minority interest, equity in income of unconsolidated affiliates and discontinued operations | | $ | 539,032 | | | $ | 388,825 | | | $ | 44,067 | | | $ | 9,595 | |
| Corporate operating costs (including non-cash stock based compensation of $ 4.1 million and $ 2.4 million for the nine months ended September 30, 2007 and 2006, respectively) | | | - | | | | - | | | | 30,087 | | | | 24,019 | |
| Depreciation of station assets | | | - | | | | - | | | | 23,347 | | | | 17,841 | |
| Amortization of broadcast licenses and other intangibles | | | - | | | | - | | | | 16,922 | | | | 13,967 | |
| Impairment charge | | | - | | | | - | | | | - | | | | 748 | |
| Unconsolidated equity affiliates (4) | | | - | | | | 1,761 | | | | - | | | | (1,283 | ) |
| Interest expense, net | | | - | | | | - | | | | 38,391 | | | | 28,173 | |
| Foreign currency exchange loss, net | | | - | | | | - | | | | 28,552 | | | | 25,469 | |
| Change in fair value of derivatives | | | - | | | | - | | | | (3,497 | ) | | | 2,757 | |
| Other expense | | | - | | | | - | | | | 13,272 | | | | 793 | |
Total Segment Data | | $ | 539,032 | | | $ | 390,586 | | | $ | 191,141 | | | $ | 122,079 | |
| | | | | | | | | | | | | | | | | |
| (1) All net revenues are derived from external customers. There are no inter-segmental revenues. | |
| (2) Romanian channels are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL and SPORT.RO. | |
| (3) We acquired our Ukraine (KINO, CITI) operations in January 2006. | |
(4) Our Slovak Republic operations were accounted for as an equity affiliate until January 23, 2006. | |
