EARNINS POLL-CME profits, revenues seen rising sharply in Q2

...  By Jan Korselt 
    PRAGUE, July 30 (Reuters) - Net profits at broadcaster CME 
are expected to have quadrupled in the second quarter due to a 
rebound in key markets and lower exchange rate losses, a Reuters 
poll showed. 
    Central European Media Enterprises (CME) was forecast to 
post a $35.3 million net profit, up from $8.5 million in the 
second quarter of 2006, according to the average estimate of 
eight analysts in the survey. 
    Revenues for the quarter were seen at $198.4 million, 27 
percent higher year-on-year. 
    The main driver of profit growth is expected to be Czech TV 
Nova, CME's biggest earner, which is expected to recover after 
pricing changes hurt its profitability last year. Analysts also 
expect improved results in Romania and Croatia. 
    "We think CME will enjoy strong advertising market growth in 
Romania and (benefit) from an advertisement price hike mainly in 
the Czech Republic," said analysts at Erste Bank. 
    Patrik Vyroubal, an analyst for Atlantik FT, forecast that 
CME's currency losses would shrink by more than $10 million in 
the quarter from last year's $20.6 million. Investment house 
Patria Finance looked for a modest $3.6 million currency loss. 
    Segment EBITDA, a closely watched gauge of operating 
profits, was estimated to have jumped 41 percent to $85.1 
million. The figure shows profits before interest, tax, 
depreciation, amortisation and some other expenses at CME's 
television stations in six central European countries. 
    But some analysts said the improvement in profits was 
already discounted in the company's share price. The stock has 
risen by 30 percent from the beginning of 2007, though it has 
pulled back from its all time high $102.18 reached in June. 
    Shares in CME were up 0.4 percent at $91.76 on Nasdaq by 
1445 GMT. 
    "Increments in the price could be limited thanks to the 
recent price growth ... However, if the results do not fulfil 
market expectations, some pressure on the price could appear," 
Vyroubal said. 
    Following is a summary of analysts' expectations (figures in 
$ million): 
 Q2                  Average    Median    Q2/06        Range 
 Revenues             198.4     199.1     156.6     187.6-212.0 
 Segment EBITDA        85.1      88.9      63.2      51.9-104.0 
 Operating profit      63.6      66.2      44.0      27.8- 80.8 
 Net profit            35.3      35.3       8.5       6.0- 61.1 
 
    The following banks and brokerages took part in the poll: 
    Atlantik FT, BH-Securities, UniCredit Global Research, 
Cyrrus, Erste Bank/Ceska Sporitelna, KBC Securities/Patria 
Finance, Komercni Banka, Wood & Company. 
 
  
 
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