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PRAGUE (Reuters) – Broadcaster CME (Central European Media Enterprises) (CETV.O) (CETV.PR) has beaten its forecasts with a 20.5% increase in net income in the second quarter and a further reduction in its debt, the group said Tuesday. CME's operating income before amortization (OIBDA) increased to $ 73.3 million (£ 58.8 million), above the average estimate of $ 67.3 million according to a survey from Reuters. Its OIBDA 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 across the five CME markets in Central and Eastern Europe, driven by growth in the advertising markets but in constant terms.
CME said quarterly growth at constant rates was the best of the past four years. It expects OIBDA to grow by 12 to 14% in 2019 at constant exchange rates.
CME also repaid 100 million euros of debt in the first half due to the increase in cash generation.
CME, majority owned by the US group AT & T (T.N), has increased in recent years and has reduced the volume of its formerly $ 1 billion debt 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.
Report by Jason Hovet; Edited by Kirsten Donovan
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