* Revenue drops in line with expectations
* EBITDA fall deeper than expected
* Reiterates drop in ad spending has bottomed out
* Shares drop 4 pct before paring losses
(Updates with conference call, analyst)
PRAGUE, Oct 27 (Reuters) - Central European Media
Enterprises' (CME) said revenues fell over 30 percent in the
third quarter, although a year-long decline in advertising spend
had bottomed out.
The company posted revenue of $134.5 million, in line with
forecasts, although earnings before interest, tax, depreciation
and amortisation (EBITDA) swung to a deeper than expected loss
of $14.4 million. Analysts in a Reuters poll had expected a $10
million EBITDA loss.
Shares fell more than 4 percent before paring losses to
close down 0.6 percent at 474 crowns ($27.05) in Prague.
The group, with TV stations in seven central and eastern
European markets including the Czech Republic and Romania,
provided 2009 guidance for the first time earlier this month.
It expects EBITDA to drop up to 80 percent to between $60
million to $70 million. Revenue should drop around 30 percent to
$702 million to $710 million. []
However, it also expects its markets -- crushed by the
economic crisis over the past year -- have hit bottom.
"TV ad spending reset 30 percent lower than in 2008. We
believe the markets have reached the bottom," CME's chief
executive Adrian Sarbu said.
"This is a new starting point. The macroeconomic prospects
for 2010 have improved and we expect advertising spending to
follow."
The broadcaster's attributable net loss deepened in the
quarter to $21.6 million from $19.3 million a year ago.
Sarbu said on a conference call the group was better
positioned for 2010 after building market share in its core
countries, where ad spending is seen growing 2-6 percent.
But he added 2009 has been the company's toughest year.
Brokerage Atlantik FT analyst Patrick Vyroubal said the
quarterly results brought no surprises, but held back on
optimism for recovery.
"We still see a risk that economic recovery will be weak,
which could make advertisers to be cautious in terms of ad
spending," he said.
Bermuda-registered CME received a shot of confidence in May
when U.S. media group Time Warner <TWX.N> invested $241.5
million to take a 31 percent stake.
The group has also cut operating and investment costs, and
restructured $545.5 million in debt to longer maturities.
CME shares have gained 25 percent since Jan. 1,
underperforming a 36 percent gain for Prague's index <>.
($1=17.52 Czech Crown)
(Reporting by Jason Hovet; Editing by David Cowell and Simon
Jessop)
