UPDATE 1-CME Q4 revenue, operating profit beat forecasts

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PRAGUE, March 1 (Reuters) - Revenue and operating profit at television broadcaster CME beat market expectations in the fourth quarter as audience share in key markets rose to record levels. The firm said revenue for the last three months of 2006 was up 41 percent to $214.3 million against an average market forecast of $201.8 million in a Reuters poll of eight analysts.

Operating profit for the quarter was $73.9 million, compared with an average market forecast of $60.5 million.

CME operates television stations in the Czech Republic, Slovakia, Ukraine, Croatia, Slovenia and Romania, all economies where buoyant economic growth has boosted advertising spending.

"While western companies struggle with their future, we increased our segment net revenues by 30 percent and segment EBITDA by 39 percent and expect to continue to meet the high expectations of our shareholders," said CME Chief Executive Officer Michael Garin.

"It is particularly gratifying that we have delivered record-breaking audience share results, which can be attributed to the operating management who oversee our activities."

Earnings per share from continuing operations dropped to $0.64 from $0.77 for the same period of the previous year.

Shares in CME, which are listed on both the Nasdaq and Prague Stock Exchange, traded down sharply on Thursday, though analysts said that was due to the global sell-off, not the results.

"The entire market has been falling, and shares of CME, which has been a growth stock, are more sensitive right now, and some are taking profits," said analyst Lukas Dufek of Komercni Banka.

The Prague bourse's broad PX index was down 0.9 percent at 1405 GMT, while CME shares were at 1,656 crowns, off 4.4 percent.