Broadcaster CME Reports Higher Second Quarter Net Earnings and Reduces Debt

PRAGUE (Reuters) – Broadcaster of European Central European Companies (CME) <CETV.O> <CETV.PR> beat forecasts with a 20.5% increase in its main earnings in the second quarter and a further reduction in its debt, the group said Tuesday. CMEOperating income before depreciation (OIBDA) rose to $ 73.3 million (58.8 million pounds sterling), above the average estimate of $ 67.3 million, according to a Reuters poll. His OIBDA the margin went from 33.4% a year earlier to 39.9%.

Revenues were in line with expectations at $ 183.6 million, up 7.9% at constant exchange rates. CMEOf the five markets of Central and Eastern Europe due to the growth of the advertising markets, but in real terms.

CME said quarterly growth at constant rates was the best in four years. It forecasts OIBDA grow by 12-14% in 2019 at constant rates.

CME also repaid 100 million euros of debt in the first half due to the increase in cash generation.

As CME, majority owned by the US group AT & T , has increased in recent years and has reduced the amount of debt, which once amounted to $ 1 billion, to $ 665 million net at the end of the first quarter.

The company said its net leverage ratio fell to 2.6 times at the end of June, after 3.5 times at the beginning of the year.

Lower debt levels opened the door for the company to pay its first dividend. However, management does not seem in a hurry to return funds to shareholders, especially after the launch in March of a strategic review that could mean the sale of part or all of the company.

Management has not commented on any specific options in the process since its launch.

(Jason Hovet Report, edited by Kirsten Donovan)