RPT-Czech CME's Q3 results, outlook send stock to peak

(Repeats story published late on Thursday)

By Alan Crosby

PRAGUE, Nov 9 (Reuters) - Central European Media Enterprises Ltd's (CME) <CETVsp.PR> reported a swing to profit in the third quarter and gave an optimistic outlook for this year and next, helping to boost its shares to a record high on Thursday.

CME, which also trades on Nasdaq <CETV.O>, reported third quarter revenues of $112.5 million, slightly below the average forecast in a Reuters poll of $114.4 million but well above the $87.1 million posted for the same period last year.

Net profit at the firm, which operates TV channels around central and eastern Europe, was $3.9 million, slightly above the $3.5 million average market forecast, and compared with a $9.7 million loss for the third quarter of 2005.

CME also said it remains confident in its 2006 guidance and was looking forward to an even stronger 2007, pushing the shares as high as 1,767 crowns ($80.50), up 4.9 percent before they retreated to close at 1,713, up 1.66 percent on the session.

"The financial performance of our stations for the third quarter 2006 was impressive," Michael Garin, Chief Executive Officer of CME, said in a statement.

"We have successfully implemented a regional management model that drives EBITDA margins by taking the experience from our best operators and applying it across our markets. We remain confident in this year's guidance and are now looking forward to an even stronger 2007."

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

It derives just under 40 percent of its revenue from the Czech Republic, where it operates TV Nova, the market leader.

"We would expect an improvement in company earnings driven by a seasonal upturn in advertising spending in the fourth quarter of 2006," said analysts at Patria Finance in Prague.

Garin noted in a conference call that CME's venture into online services, both paid and free, are gaining ground.

"We're really getting to a place now where we are feeling confident in our ability to compete successfully in the new media arena as we have in the past 11 years in the traditional media," he said. ((Reporting by Alan Crosby

Editing by Louise Ireland/Sue Thomas

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Keywords: MEDIA CZECH CME