UPDATE 2-CME Q1 net loss narrows, shares soar on outlook

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By Alan Crosby

Growth in its key markets boosted revenues at television broadcaster CME and narrowed the firm's first-quarter net loss, while a positive outlook pushed its shares sharply higher on Thursday.

CME, which is traded both in Prague and on the U.S.-based Nasdaq, said its net loss narrowed to $0.3 million from $18.3 million a year earlier. Consolidated revenue rose 24 percent to $147.9 million.

Analysts polled by Reuters had forecast a net profit of $2.1 million, but CME shares closed up 6.8 percent at 1,999 Czech crowns ($96.76) on positive full-year guidance, beating the broader market, which dipped 0.06 percent.

"CME continues to perform to exceptional standards. We anticipate EBITDA growth in excess of 35 percent this year for our broadcast operations, which once again will make us one of the fastest-growing broadcasters in the world," Chief Executive Michael Garin said in a statement.

The statement added that full-year 2007 revenues were expected to grow 27-30 percent.

CME is popular among investors seeking growth in advertising markets of new European Union members or candidates.

It operates in six countries in eastern Europe, and derives just under 40 percent of its revenue from the Czech Republic, where it operates TV Nova, the market leader.

The firm said TV Nova's first-quarter net revenues hit $51.5 million, up just over 25 percent over the same quarter of the previous year. First quarter EBITDA at TV Nova doubled to $25.7 million.

Revenues in Romania, Croatia and Slovakia were also up strongly.

"That (the guidance) beat even our bullish expectations," said Tibor Bokor, an analyst at Wood&Co.

"Some people did not believe that Czech TV Nova (sales) could grow by double digits. TV Nova is winning market share from (local rival) TV Prima, that is obvious. That is another positive sign, and investors were not absolutely certain it would come true."

The firm also announced it planned a private placement of senior floating-rate notes totalling 150 million euros, with the offer to commence shortly.

[PRAGUE/Reuters/Finance.cz]