* Q1 revenue $172.8 million vs forecast $161.6 million
* TV ad markets to grow by single-digit percentage in 2011
* No guidance yet, but CEO comfortable with analyst views
* Shares jump to highest since mid-January
(Adds CEO comments, outlook, updates shares)
By Jana Mlcochova and Jason Hovet
PRAGUE, April 27 (Reuters) - Central European Media
Enterprises (CME) <CETV.O> said on Wednesday it would target
double-digit revenue growth in 2011 as ad spending recovered
with economic growth.
It said first-quarter revenue had risen about 20 percent to
$172.8 million, above the average estimate of $161.6 million in
a Reuters poll.
CME expects its six central and eastern European markets to
rebound this year after the economic crisis cut spending on
television advertising by around a third.
Chief Executive Adrian Sarbu said the company's revenue
growth target was at constant currencies. While CME would not
give official full-year guidance figures until after the second
quarter, Sarbu partially confirmed market expectations.
"We are comfortable with current analyst consensus for the
full year of approximately $810 million for revenues and $165
million for EBITDA," Sarbu said in a conference call.
With economic growth starting to take hold in its markets,
TV ad spending should rise overall in the low single digits,
with a pick-up mainly in the second half of the year.
"We remain confident that all our TV advertising markets
will grow in 2011," he said.
CME shares extended gains after the outlook to rise 6.6
percent to 369 crowns, outperforming a 1.2 percent rise in the
main Prague index <>.
The stock had dropped 45.5 percent in the past year ahead of
the results, while regional peer TVN <TVNN.WA> of Poland lost 8
percent.
First-quarter revenue grew in five of its markets, including
the biggest, the Czech Republic. The only market to see a
year-on-year drop was Romania, CME's second-largest market.
Operating profit before depreciation and amortisation
(OIBDA) increased to $14.2 million from 0.8 million a year ago,
meeting the average estimate in the Reuters poll of 11 analysts.
STOCK REBOUND
J&T Bank analyst Pavel Ryska said the stock had suffered in
recent weeks due to a more bearish view from analysts.
"The fact that they confirmed the prevailing opinion of
analysts (on 2011 revenue), and that the OIBDA margin should go
up this year ... is pushing the price higher," he said.
CME also reported a first-quarter net loss of $21.1 million,
less than the forecast $48.7 million loss, after one-off costs
related to debt repurchases.
The company, partly owned by Time Warner <TWX.N> and U.S.
investor Ronald Lauder, acquired Bulgaria's bTV last April,
which added to the group's first-quarter earnings.
In 2010, revenue rose to $731.1 million, but was down from
$1 billion posted in 2008. CME has said it does not expect ad
spending to return to pre-crisis levels until 2013.
(Editing by David Holmes and Will Waterman)
