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

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

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 czech crowns ($80.50), up 4.9 percent. The shares were trading up 2.7 percent

"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 about 40 percent of its revenue from the Czech Republic, where it operates TV Nova, the market leader.

((Reporting by Alan Crosby

Editing by Louise Ireland

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Keywords: MEDIA CZECH CME