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Document/Exhibit Description Pages Size 1: 10-Q/A Central European Media 10-Qa 9-30-2007 HTML 1.58M 2: EX-31.01 Certification per Sarbanes-Oxley Act (Section 302) HTML 11K 3: EX-31.02 Certification per Sarbanes-Oxley Act (Section 302) HTML 11K 4: EX-32.01 Certification per Sarbanes-Oxley Act (Section 906) HTML 10K
BERMUDA
|
98-0438382
|
(State
or other jurisdiction of incorporation and organization)
|
(IRS
Employer Identification No.)
|
Clarendon House, Church Street,
Hamilton
|
HM 11
Bermuda
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer T
|
Accelerated
filer £
|
Non-accelerated
filer £
|
Class
|
Outstanding as of
October 30, 2007
|
Class
A Common Stock, par value $0.08
|
35,961,948
|
Class
B Common Stock, par value $0.08
|
6,312,839
|
Page
|
|
Part
I. Financial information
|
|
2
|
|
4
|
|
6
|
|
7
|
|
8
|
|
41
|
|
Part
II. Other Information
|
|
84
|
|
85
|
|
86
|
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ |
192,569
|
$ |
145,904
|
||||
Restricted
cash (Note 6)
|
1,246
|
4,954
|
||||||
Accounts
receivable (net of allowance) (Note 7)
|
149,540
|
152,505
|
||||||
Income
taxes receivable
|
3,222
|
3,053
|
||||||
Program
rights, net
|
72,533
|
59,645
|
||||||
Other
current assets (Note 8)
|
70,288
|
47,555
|
||||||
Total current
assets
|
489,398
|
413,616
|
||||||
Non-current
assets
|
||||||||
Investments
|
16,563
|
19,214
|
||||||
Property,
plant and equipment, net (Note 9)
|
154,996
|
115,805
|
||||||
Program
rights, net
|
100,222
|
76,638
|
||||||
Goodwill
(Note 4)
|
1,025,544
|
905,580
|
||||||
Broadcast
licenses, net (Note 4)
|
230,224
|
198,730
|
||||||
Other
intangible assets, net (Note 4)
|
131,170
|
71,942
|
||||||
Other
non-current assets (Note 8)
|
19,420
|
17,475
|
||||||
Total non-current
assets
|
1,678,139
|
1,405,384
|
||||||
Total
assets
|
$ |
2,167,537
|
$ |
1,819,000
|
LIABILITIES AND SHAREHOLDERS’
EQUITY
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable and accrued liabilities (Note 10)
|
$ |
169,624
|
$ |
119,717
|
||||
Duties
and other taxes payable
|
42,921
|
31,707
|
||||||
Income
taxes payable
|
12,531
|
12,434
|
||||||
Credit
facilities and obligations under capital leases (Note 11)
|
13,371
|
13,057
|
||||||
Dividends
payable to minority shareholders in subsidiaries
|
2,983
|
-
|
||||||
Deferred
consideration – Croatia
|
-
|
4,010
|
||||||
Deferred
consideration – Ukraine
|
-
|
200
|
||||||
Deferred
tax
|
4,213
|
1,836
|
||||||
Total current
liabilities
|
245,643
|
182,961
|
||||||
Non-current
liabilities
|
||||||||
Credit
facilities and obligations under capital leases (Note 11)
|
5,886
|
6,359
|
||||||
Senior
Notes (Note 5)
|
560,045
|
487,291
|
||||||
Income
taxes payable
|
4,719
|
3,000
|
||||||
Deferred
tax
|
76,614
|
58,092
|
||||||
Other
non-current liabilities
|
11,819
|
19,342
|
||||||
Total non-current
liabilities
|
659,083
|
574,084
|
||||||
Commitments
and contingencies (Note 18)
|
||||||||
Minority interests in
consolidated subsidiaries
|
15,780
|
26,189
|
||||||
SHAREHOLDERS'
EQUITY:
|
||||||||
Nil
shares of Preferred Stock of $0.08 each (December 31, 2006 –
nil)
|
-
|
-
|
||||||
35,916,948
shares of Class A Common Stock of $0.08 each (December 31, 2006 –
34,412,138)
|
2,877
|
2,753
|
||||||
6,312,839
shares of Class B Common Stock of $0.08 each (December 31, 2006 –
6,312,839)
|
505
|
505
|
||||||
Additional
paid-in capital
|
1,048,924
|
931,108
|
||||||
Accumulated
deficit
|
(19,372 | ) | (31,730 | ) | ||||
Accumulated
other comprehensive income
|
214,097
|
133,130
|
||||||
Total shareholders’
equity
|
1,247,031
|
1,035,766
|
||||||
Total liabilities and
shareholders’ equity
|
$ |
2,167,537
|
$ |
1,819,000
|
For
the Three Months Ended September 30,
|
For
the Nine Months Ended September 30,
|
|||||||||||||||
(as
restated,
see
Note 2)
|
2006
|
2007
(as
restated,
s ee
Note 2)
|
2006
|
|||||||||||||
Net
revenues
|
$ | 174,836 | $ | 112,482 | $ | 539,032 | $ | 388,825 | ||||||||
Operating
costs
|
27,166 | 22,073 | 83,767 | 71,087 | ||||||||||||
Cost
of programming
|
65,909 | 47,920 | 215,035 | 149,188 | ||||||||||||
Depreciation
of station property, plant and equipment
|
8,768 | 6,080 | 23,347 | 17,841 | ||||||||||||
Amortization
of broadcast licenses and other intangibles (Note 4)
|
6,595 | 5,015 | 16,922 | 13,967 | ||||||||||||
Cost
of revenues
|
108,438 | 81,088 | 339,071 | 252,083 | ||||||||||||
Station
selling, general and administrative expenses
|
17,609 | 16,481 | 49,089 | 45,188 | ||||||||||||
Corporate
operating costs
|
20,396 | 8,342 | 42,613 | 24,019 | ||||||||||||
Impairment
charge
|
- | - | - | 748 | ||||||||||||
Operating
income
|
28,393 | 6,571 | 108,259 | 66,787 | ||||||||||||
Interest
income
|
1,180 | 1,554 | 4,326 | 4,748 | ||||||||||||
Interest
expense
|
(11,883 | ) | (11,066 | ) | (42,717 | ) | (32,921 | ) | ||||||||
Foreign
currency exchange (loss) / gain, net
|
(23,300 | ) | 6,018 | (28,552 | ) | (25,469 | ) | |||||||||
Change
in fair value of derivatives (Note 12)
|
(8,555 | ) | (881 | ) | 3,497 | (2,757 | ) | |||||||||
Other
income / (expense)
|
44 | (412 | ) | (746 | ) | (793 | ) | |||||||||
(Loss)
/ income before provision for income taxes, minority interest, equity in
loss of unconsolidated affiliates and discontinued
operations
|
(14,121 | ) | 1,784 | 44,067 | 9,595 | |||||||||||
Provision
for income taxes
|
(131 | ) | (1,235 | ) | (18,609 | ) | (8,811 | ) | ||||||||
(Loss)
/ income before minority interest, equity in loss of unconsolidated
affiliates and discontinued operations
|
(14,252 | ) | 549 | 25,458 | 784 | |||||||||||
Minority
interest in income of consolidated subsidiaries
|
(4,511 | ) | (461 | ) | (9,881 | ) | (7,178 | ) | ||||||||
Equity
in loss of unconsolidated affiliates
|
- | - | - | (730 | ) | |||||||||||
Gain
on sale of unconsolidated affiliate
|
- | 6,179 | - | 6,179 | ||||||||||||
Net
(loss) / income from continuing operations
|
(18,763 | ) | 6,267 | 15,577 | (945 | ) | ||||||||||
Discontinued
operations (Note 17):
|
||||||||||||||||
Tax
on disposal of discontinued operations (Czech Republic)
|
- | (2,333 | ) | - | (4,863 | ) | ||||||||||
Net
loss from discontinued operations
|
- | (2,333 | ) | - | (4,863 | ) | ||||||||||
Net
(loss) / income
|
$ | (18,763 | ) | $ | 3,934 | $ | 15,577 | $ | (5,808 | ) | ||||||
Currency
translation adjustment, net
|
100,470 | 3,507 | 80,967 | 80,672 | ||||||||||||
Total
comprehensive income
|
$ | 81,707 | $ | 7,441 | $ | 96,544 | $ | 74,864 |
For the Three Months
Ended
September 30,
|
For the Nine Months
Ended
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
PER SHARE DATA (Note
15):
|
||||||||||||||||
Net income / (loss) per
share:
|
||||||||||||||||
Continuing
operations – Basic
|
$ | (0.45 | ) | $ |
0.15
|
$ |
0.38
|
$ | (0.02 | ) | ||||||
Continuing
operations – Diluted
|
(0.45 | ) |
0.15
|
0.37
|
(0.02 | ) | ||||||||||
Discontinued
operations – Basic
|
0.00
|
(0.06 | ) |
0.00
|
(0.12 | ) | ||||||||||
Discontinued
operations – Diluted
|
0.00
|
(0.06 | ) |
0.00
|
(0.12 | ) | ||||||||||
Net
income / (loss) – Basic
|
(0.45 | ) |
0.09
|
0.38
|
(0.14 | ) | ||||||||||
Net
income / (loss) – Diluted
|
$ | (0.45 | ) | $ |
0.09
|
$ |
0.37
|
$ | (0.14 | ) | ||||||
Weighted average common shares
used in computing per share amounts (000’s):
|
||||||||||||||||
Basic
|
41,489
|
40,651
|
41,077
|
39,792
|
||||||||||||
Diluted
|
41,489
|
41,188
|
41,553
|
39,792
|
Class A Common
Stock
|
Class B Common
Stock
|
|||||||||||||||||||||||||||||||
Number of
shares
|
Par
value
|
Number of
shares
|
Par
value
|
Additional Paid-In
Capital
|
Accumulated
Deficit
|
Accumulated Other Comprehensive
Income / (Loss)
|
Total Shareholders'
Equity
|
|||||||||||||||||||||||||
BALANCE,
|
34,412,138
|
$ |
2,753
|
6,312,839
|
$ |
505
|
$ |
931,108
|
$ | (31,730 | ) | $ |
133,130
|
$ |
1,035,766
|
|||||||||||||||||
Impact
of adoption of FIN 48
|
-
|
-
|
-
|
-
|
-
|
(3,219 | ) |
-
|
(3,219 | ) | ||||||||||||||||||||||
BALANCE,
upon the adoption of FIN 48
|
34,412,138
|
$ |
2,753
|
6,312,839
|
$ |
505
|
$ |
931,108
|
$ | (34,949 | ) | $ |
133,130
|
$ |
1,032,547
|
|||||||||||||||||
Stock-based
compensation
|
-
|
-
|
-
|
-
|
4,610
|
-
|
-
|
4,610
|
||||||||||||||||||||||||
Shares
issued, net of fees
|
1,275,227
|
102
|
-
|
-
|
109,751
|
-
|
-
|
109,853
|
||||||||||||||||||||||||
Stock
options exercised
|
274,583
|
22
|
-
|
-
|
3,455
|
-
|
-
|
3,477
|
||||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
15,577
|
-
|
15,577
|
|||||||||||||||||||||||||
Currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
80,967
|
80,967
|
|||||||||||||||||||||||||
BALANCE,
|
35,961,948
|
$ |
2,877
|
6,312,839
|
$ |
505
|
$ |
1,048,924
|
$ | (19,372 | ) | $ |
214,097
|
$ |
1,247,031
|
Class A Common
Stock
|
Class B Common
Stock
|
|||||||||||||||||||||||||||||||
Number of
Shares
|
Par
Value
|
Number of
Shares
|
Par
Value
|
Additional Paid-In
Capital
|
Accumulated
Deficit
|
Accumulated Other Comprehensive
Income / (Loss)
|
Total Shareholders'
Equity
|
|||||||||||||||||||||||||
BALANCE,
|
31,032,994
|
$ |
2,482
|
6,966,533
|
$ |
558
|
$ |
754,061
|
$ | (52,154 | ) | $ | (24,394 | ) | $ |
680,553
|
||||||||||||||||
Stock-based
compensation
|
-
|
-
|
-
|
-
|
2,385
|
-
|
-
|
2,385
|
||||||||||||||||||||||||
Stock
options exercised
|
95,450
|
8
|
100,000
|
8
|
3,608
|
-
|
-
|
3,624
|
||||||||||||||||||||||||
Shares
issued, net of fees
|
2,530,000
|
202
|
-
|
-
|
168,397
|
-
|
-
|
168,599
|
||||||||||||||||||||||||
Conversion
of Class B to Class A Common Shares
|
753,694
|
61
|
(753,694 | ) | (61 | ) |
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(5,808 | ) |
-
|
(5,808 | ) | ||||||||||||||||||||||
Currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
80,672
|
80,672
|
||||||||||||||||||||||||
BALANCE,
|
34,412,138
|
$ |
2,753
|
6,312,839
|
$ |
505
|
$ |
928,451
|
$ | (57,962 | ) | $ |
56,278
|
$ |
930,025
|
For the Nine Months
Ended
September 30,
|
||||||||
2006
|
||||||||
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
||||||||
Net income /
(loss)
|
$ |
15,577
|
$ | (5,808 | ) | |||
Adjustments
to reconcile net income / (loss) to net cash generated from operating
activities:
|
||||||||
Loss
from discontinued operations (Note 17)
|
-
|
4,863
|
||||||
Equity
in loss of unconsolidated affiliates, net of dividends
received
|
-
|
730
|
||||||
Gain
on sale of unconsolidated affiliate
|
-
|
(6,179 | ) | |||||
Depreciation
and amortization
|
165,889
|
111,443
|
||||||
Impairment
charge
|
-
|
748
|
||||||
Loss
on disposal of fixed asset
|
-
|
1,503
|
||||||
Stock-based
compensation (Note 14)
|
4,098
|
2,385
|
||||||
Minority
interest in income of consolidated subsidiaries
|
9,881
|
7,178
|
||||||
Change
in fair value of derivative instruments
|
(3,497 | ) |
2,757
|
|||||
Foreign
currency exchange loss, net
|
28,552
|
25,469
|
||||||
Net
change in (net of effects of acquisitions and disposals of
businesses):
|
||||||||
Accounts
receivable
|
11,616
|
15,248
|
||||||
Program
rights
|
(170,610 | ) | (110,315 | ) | ||||
Other
assets
|
(7,430 | ) | (987 | ) | ||||
Accounts
payable and accrued liabilities
|
27,319
|
8,371
|
||||||
Income
taxes payable
|
557
|
(5,663 | ) | |||||
Deferred
taxes
|
4,202
|
4,600
|
||||||
VAT
and other taxes payable
|
9,735
|
11,564
|
||||||
Net cash generated from
continuing operating activities
|
95,889
|
67,907
|
||||||
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
||||||||
Purchase
of property, plant and equipment
|
(46,277 | ) | (31,767 | ) | ||||
Proceeds
from disposal of property, plant and equipment
|
123
|
19
|
||||||
Investments
in subsidiaries and unconsolidated affiliates
|
(142,709 | ) | (69,470 | ) | ||||
Repayment
of loans and advances to related parties
|
400
|
400
|
||||||
Net cash used in continuing
investing activities
|
(188,463 | ) | (100,818 | ) | ||||
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
||||||||
Proceeds
from credit facilities
|
177,515
|
35,878
|
||||||
Payment
of credit facilities and capital leases
|
(182,391 | ) | (74,773 | ) | ||||
Net
proceeds from issuance of Senior Notes
|
199,400
|
-
|
||||||
Redemption
of Senior Notes
|
(169,010 | ) |
-
|
|||||
Proceeds
from exercise of stock options
|
3,477
|
3,624
|
||||||
Issuance
of shares of Class A Common Stock
|
109,853
|
168,599
|
||||||
Excess
tax benefits from share-based payment arrangements
|
512
|
-
|
||||||
Dividends
paid to minority shareholders
|
(2,910 | ) | (1,101 | ) | ||||
Net cash received from
continuing financing activities
|
136,446
|
132,227
|
||||||
NET
CASH USED IN DISCONTINUED OPERATIONS – OPERATING
ACTIVITIES
|
(2,164 | ) | (1,690 | ) | ||||
Impact of exchange rate
fluctuations on cash
|
4,957
|
(4,782 | ) | |||||
Net
increase in cash and cash equivalents
|
46,665
|
92,844
|
||||||
CASH AND CASH EQUIVALENTS,
beginning of period
|
145,904
|
71,658
|
||||||
CASH AND CASH EQUIVALENTS, end
of period
|
$ |
192,569
|
$ |
164,502
|
Company
Name
|
Effective Voting
Interest
|
Jurisdiction of
Organization
|
Type of Affiliate
(1)
|
Nova
TV d.d. (“Nova TV (Croatia)”)
|
100.0%
|
Croatia
|
Subsidiary
|
Media
House d.o.o.
|
100.0%
|
Croatia
|
Subsidiary
|
Internet
Dnevnik d.o.o.
|
76.0%
|
Croatia
|
Subsidiary
|
|
|||
CME
Media Investments, s.r.o.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
VILJA,
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
CET
21 spol., s r.o. (“CET 21”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
ERIKA
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
MEDIA
CAPITOL a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
HARTIC,
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
Galaxie
sport s r.o. (“Galaxie Sport”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
|
|||
Media
Pro International S.A. (“MPI”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Vision SRL (“Media Vision”)
|
95.0%
|
Romania
|
Subsidiary
|
MPI
Romania B.V.
|
95.0%
|
Netherlands
|
Subsidiary
|
Pro
TV S.A. (“Pro TV”)
|
95.0%
|
Romania
|
Subsidiary
|
Sport
Radio TV Media SRL (“Sport.ro”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Pro B.V.
|
10.0%
|
Netherlands
|
Cost
investment
|
Media
Pro Management S.A.
|
8.7%
|
Romania
|
Cost
investment
|
|
|||
A.R.J.
a.s.
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
Media
Invest s.r.o. (“Media Invest”)
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
MARKIZA-SLOVAKIA
spol. s r.o. (“Markiza”)
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
GAMATEX
spol. s r.o.
|
100.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
A.D.A.M.,
a.s.
|
100.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
|
|||
MMTV
1 d.o.o.
|
100.0%
|
Slovenia
|
Subsidiary
|
Produkcija
Plus d.o.o. (“Pro Plus”)
|
100.0%
|
Slovenia
|
Subsidiary
|
POP
TV d.o.o. (“Pop TV”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Kanal
A d.o.o. (“Kanal A”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Euro
3 TV d.o.o
|
42.0%
|
Slovenia
|
Equity-Accounted
Affiliate
|
MTC
Holding d.o.o.
|
24.0%
|
Slovenia
|
Equity-Accounted
Affiliate (in liquidation)
|
Company
Name
|
Effective Voting
Interest
|
Jurisdiction of
Organization
|
Type of Affiliate
(1)
|
Ukrainian
Media Services LLC (“UMS”)
|
99.9%
|
Ukraine
|
Subsidiary
|
International
Media Services Ltd. (“IMS”)
|
60.0%
|
Bermuda
|
Subsidiary
|
Innova
Film GmbH (“Innova”)
|
60.0%
|
Germany
|
Subsidiary
|
Foreign
Enterprise “Inter-Media” (“Inter-Media”)
|
60.0%
|
Ukraine
|
Subsidiary
|
TV
Media Planet Ltd.
|
60.0%
|
Cyprus
|
Subsidiary
|
Studio
1+1 LLC (“Studio 1+1”)
|
60.0%
|
Ukraine
|
Subsidiary
|
|
|||
Ukrpromtorg
-2003 LLC (“Ukrpromtorg”)
|
65.5%
|
Ukraine
|
Subsidiary
|
Gravis
LLC
|
60.4%
|
Ukraine
|
Subsidiary
|
Delta
JSC
|
60.4%
|
Ukraine
|
Subsidiary
|
Nart
LLC
|
65.5%
|
Ukraine
|
Subsidiary
|
TV
Stimul LLC
|
49.1%
|
Ukraine
|
Equity-Accounted
Affiliate
|
Tor
LLC (“Tor”)
|
60.4%
|
Ukraine
|
Subsidiary
|
Zhysa
LLC (“Zhysa”)
|
60.4%
|
Ukraine
|
Subsidiary
|
CME
Media Enterprises B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Czech Republic II B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Romania B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Slovak Holdings B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
Central
European Media Enterprises N.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
Central
European Media Enterprises II B.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
CME
SR d.o.o.
|
100.0%
|
Serbia
|
Subsidiary
(in liquidation)
|
CME
Ukraine Holding GmbH
|
100.0%
|
Austria
|
Subsidiary
|
CME
Cyprus Holding Ltd.
|
100.0%
|
Cyprus
|
Subsidiary
|
CME
Development Corporation
|
100.0%
|
Delaware
|
Subsidiary
|
(1)
|
All
subsidiaries have been consolidated in our Consolidated Financial
Statements. All equity-accounted affiliates have been accounted for using
the equity method. All cost investments have been accounted for using the
cost method.
|
Jurisdiction
|
Year
|
Croatia
|
2003
|
Czech
Republic
|
2002
|
Germany
|
2000
|
Netherlands
|
2004
|
Romania
|
2002
|
Slovak
Republic
|
2001
|
Slovenia
|
2001
|
Ukraine
|
2003
|
United
States
|
2001
|
As
reported previously
|
Adjustment
|
As
restated
|
||||||||||
Net
revenues
|
174,836 | - | 174,836 | |||||||||
Corporate
operating costs
|
13,839 | 6,557 | 20,396 | |||||||||
Operating
income
|
34,950 | (6,557 | ) | 28,393 | ||||||||
Other
income / (expense)
|
(6,513 | ) | 6,557 | 44 | ||||||||
Net
loss
|
(18,763 | ) | - | (18,763 | ) |
As
reported previously
|
Adjustment
|
As
restated
|
||||||||||
Net
revenues
|
539,032 | - | 539,032 | |||||||||
Corporate
operating costs
|
30,087 | 12,526 | 42,613 | |||||||||
Operating
income
|
120,785 | (12,526 | ) | 108,259 | ||||||||
Other
income / (expense)
|
(13,272 | ) | 12,526 | (746 | ) | |||||||
Net
income
|
15,577 | - | 15,577 |
Fair Value on
Acquisition
|
||||
Property,
plant and equipment
|
$ |
35
|
||
Intangible
assets subject to amortization (1)
|
4,784
|
|||
Intangible
assets not subject to amortization (2)
|
8,974
|
|||
Other
assets
|
2,904
|
|||
Goodwill
|
2,311
|
|||
Deferred
tax liability
|
(1,575 | ) | ||
Other
liabilities
|
(6,398 | ) | ||
Total purchase
price
|
$ |
11,035
|
Fair Value on
Acquisition
|
||||
Intangible
assets subject to amortization (1)
|
$ |
4,517
|
||
Intangible
assets not subject to amortization (2)
|
23,597
|
|||
Goodwill
|
23,974
|
|||
Deferred
tax liability
|
(4,498 | ) | ||
Minority
interests
|
4,029
|
|||
Total purchase
price
|
$ |
51,619
|
Fair Value on
Acquisition
|
||||
Property
Plant and Equipment
|
2,590
|
|||
Intangible
assets subject to amortization (1)
|
46,906
|
|||
Intangible
assets not subject to amortization (2)
|
2,405
|
|||
Goodwill
(3)
|
26,334
|
|||
Deferred
tax liability
|
(9,860 | ) | ||
Minority
interest
|
10,268
|
|||
Total purchase price
(4)
|
$ |
78,643
|
Balance
|
Additions
|
Foreign
currency
movement
|
Balance
|
|||||||||||||
Croatia
|
$ |
-
|
$ |
712
|
$ |
40
|
$ |
752
|
||||||||
Czech
Republic
|
823,786
|
-
|
59,398
|
883,184
|
||||||||||||
Romania
|
31,130
|
26,285
|
-
|
57,415
|
||||||||||||
Slovak
Republic
|
25,483
|
26,335
|
2,928
|
54,746
|
||||||||||||
Slovenia
|
16,458
|
-
|
1,257
|
17,715
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
4,096
|
-
|
-
|
4,096
|
||||||||||||
Ukraine
(KINO, CITI)
|
4,627
|
3,009
|
-
|
7,636
|
||||||||||||
Total
|
$ |
905,580
|
$ |
56,341
|
$ |
63,623
|
$ |
1,025,544
|
Indefinite-Lived
Broadcast
Licenses
|
Amortized
Broadcast
Licenses
|
Total
|
||||||||||
Balance, December 31,
2006
|
$ |
26,344
|
$ |
172,386
|
$ |
198,730
|
||||||
Additions
|
23,321
|
8,974
|
32,295
|
|||||||||
Amortization
|
-
|
(12,982 | ) | (12,982 | ) | |||||||
Foreign
currency movements
|
705
|
11,476
|
12,181
|
|||||||||
Balance, September 30,
2007
|
$ |
50,370
|
$ |
179,854
|
$ |
230,224
|
Gross
value
|
$ |
225,336
|
$ |
201,994
|
||||
Accumulated
amortization
|
(45,482 | ) | (29,608 | ) | ||||
Total net book
value
|
$ |
179,854
|
$ |
172,386
|
Trademarks
|
Customer
Relationships
|
Other
|
Total
|
|||||||||||||
Balance, December 31,
2006
|
$ |
44,026
|
$ |
27,213
|
$ |
703
|
$ |
71,942
|
||||||||
Additions
|
12,192
|
46,554
|
425
|
59,171
|
||||||||||||
Amortization
|
(186 | ) | (3,363 | ) | (391 | ) | (3,940 | ) | ||||||||
Foreign
currency movements
|
2,010
|
1,938
|
49
|
3,997
|
||||||||||||
Balance, September 30,
2007
|
$ |
58,042
|
$ |
72,342
|
$ |
786
|
$ |
131,170
|
Gross
value
|
$ |
140,429
|
$ |
76,695
|
||||
Accumulated
amortization
|
(9,259 | ) | (4,753 | ) | ||||
Total net book
value
|
$ |
131,170
|
$ |
71,942
|
Carrying
Value
|
Fair
Value
|
|||||||||||||||
EUR
245.0 million 8.25% Senior Notes
|
$ |
347,370
|
$ |
322,666
|
$ |
363,002
|
$ |
353,722
|
||||||||
EUR
125.0 million Floating Rate Senior Notes
|
-
|
164,625
|
-
|
170,181
|
||||||||||||
EUR
150.0 million Floating Rate Senior Notes
|
212,675
|
-
|
202,042
|
-
|
||||||||||||
$ |
560,045
|
$ |
487,291
|
$ |
565,044
|
$ |
523,903
|
From:
|
Fixed Rate
Notes
Redemption
Price
|
104.125%
|
|
102.063%
|
|
100.000%
|
From:
|
2014 Floating Rate
Notes
Redemption
Price
|
102.000%
|
|
101.000%
|
|
100.000%
|
Croatia
|
$ |
417
|
$ |
4,183
|
||||
Slovenia
|
780
|
724
|
||||||
Ukraine
(STUDIO 1+1)
|
49
|
47
|
||||||
Total restricted
cash
|
$ |
1,246
|
$ |
4,954
|
Trading:
|
||||||||
Third-party
customers
|
$ |
158,020
|
$ |
156,701
|
||||
Less:
allowance for bad debts and credit notes
|
(13,860 | ) | (11,472 | ) | ||||
Related
parties
|
5,522
|
7,655
|
||||||
Less:
allowance for bad debts and credit notes
|
(266 | ) | (798 | ) | ||||
Total
trading
|
$ |
149,416
|
$ |
152,086
|
||||
Other:
|
||||||||
Third-party
customers
|
$ |
240
|
$ |
359
|
||||
Less:
allowance for bad debts and credit notes
|
(116 | ) | (103 | ) | ||||
Related
parties
|
61
|
454
|
||||||
Less:
allowance for bad debts and credit notes
|
(61 | ) | (291 | ) | ||||
Total
other
|
$ |
124
|
$ |
419
|
||||
Total accounts
receivable
|
$ |
149,540
|
$ |
152,505
|
Current:
|
||||||||
Prepaid
programming
|
$ |
40,832
|
$ |
23,072
|
||||
Other
prepaid expenses
|
14,737
|
13,177
|
||||||
Deferred
tax
|
1,966
|
2,124
|
||||||
VAT
recoverable
|
3,600
|
2,562
|
||||||
Loan
to related party
|
600
|
600
|
||||||
Capitalized
debt costs
|
3,077
|
2,908
|
||||||
Other
|
5,476
|
3,112
|
||||||
Total other current
assets
|
$ |
70,288
|
$ |
47,555
|
||||
Non-current:
|
||||||||
Capitalized
debt costs
|
$ |
11,023
|
$ |
11,264
|
||||
Loan
to related party
|
1,334
|
1,603
|
||||||
Deferred
tax
|
4,557
|
3,443
|
||||||
Other
|
2,506
|
1,165
|
||||||
Total other non-current
assets
|
$ |
19,420
|
$ |
17,475
|
Land
and buildings
|
$ |
74,753
|
$ |
56,212
|
||||
Station
machinery, fixtures and equipment
|
140,644
|
115,238
|
||||||
Other
equipment
|
28,580
|
21,980
|
||||||
Software
licenses
|
18,581
|
15,495
|
||||||
Construction
in progress
|
19,487
|
4,070
|
||||||
Total
cost
|
282,045
|
212,995
|
||||||
Less: Accumulated
depreciation
|
(127,049 | ) | (97,190 | ) | ||||
Total net book
value
|
$ |
154,996
|
$ |
115,805
|
||||
Assets held under capital
leases (included above)
|
||||||||
Land
and buildings
|
$ |
5,965
|
$ |
5,541
|
||||
Station
machinery, fixtures and equipment
|
1,344
|
2,330
|
||||||
Total
cost
|
7,309
|
7,871
|
||||||
Less:
Accumulated depreciation
|
(1,698 | ) | (1,877 | ) | ||||
Net book
value
|
$ |
5,611
|
$ |
5,994
|
Accounts
payable
|
$ |
24,155
|
$ |
47,447
|
||||
Programming
liabilities
|
40,111
|
32,316
|
||||||
Accrued
interest payable
|
15,902
|
5,375
|
||||||
Deferred
income
|
26,368
|
3,212
|
||||||
Accrued
staff costs
|
21,950
|
12,947
|
||||||
Accrued
production costs
|
5,385
|
7,435
|
||||||
Accrued
legal costs
|
15,769
|
3,619
|
||||||
Accrued
rent costs
|
1,184
|
1,163
|
||||||
Authors’
rights
|
4,767
|
943
|
||||||
Onerous
contracts
|
1,804
|
-
|
||||||
Other
accrued liabilities
|
12,229
|
5,260
|
||||||
Total accounts payable and
accrued liabilities
|
$ |
169,624
|
$ |
119,717
|
Credit
facilities:
|
|||||||||
Corporate
|
(a)
|
$ |
-
|
$ |
-
|
||||
Croatia
|
(b)
|
-
|
847
|
||||||
Czech
Republic
|
(c)
– (e)
|
12,839
|
11,975
|
||||||
Romania
|
(f)
|
-
|
-
|
||||||
Slovenia
|
(g)
|
-
|
-
|
||||||
Ukraine
(KINO, CITI)
|
(h)
|
1,700
|
1,703
|
||||||
Total credit
facilities
|
$ |
14,539
|
$ |
14,525
|
|||||
Capital
leases:
|
|||||||||
Croatia
operations, net of interest
|
$ |
-
|
$ |
19
|
|||||
Romania
operations, net of interest
|
300
|
495
|
|||||||
Slovak
Republic operations, net of interest
|
96
|
154
|
|||||||
Slovenia
operations, net of interest
|
4,322
|
4,223
|
|||||||
Total capital
leases
|
$ |
4,718
|
$ |
4,891
|
|||||
Total credit facilities and
capital leases
|
$ |
19,257
|
$ |
19,416
|
|||||
Less
current maturities
|
(13,371 | ) | (13,057 | ) | |||||
Total non-current
maturities
|
$ |
5,886
|
$ |
6,359
|
2007
|
$ |
12,839
|
||
2008
|
-
|
|||
2009
|
1,700
|
|||
2010
|
-
|
|||
2011
|
-
|
|||
2012
and thereafter
|
560,045
|
|||
Total
|
$ |
574,584
|
2007
|
$ |
679
|
||
2008
|
1,093
|
|||
2009
|
679
|
|||
2010
|
471
|
|||
2011
|
949
|
|||
2012
and thereafter
|
2,967
|
|||
$ |
6,838
|
|||
Less:
amount representing interest
|
(2,120 | ) | ||
Present value of net minimum
lease payments
|
$ |
4,718
|
For the Three
Months
Ended September
30,
|
For the Nine
Months
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
Stock-based
compensation charged under SFAS 123(R)
|
$ |
1,494
|
$ |
967
|
$ |
4,098
|
$ |
2,385
|
Date of Option
Grant
|
Number of Options
Granted
|
Risk-free interest rate
(%)
|
Expected term
(years)
|
Expected
volatility
(%)
|
Dividend
yield
(%)
|
Weighted-average fair
value
($/share)
|
||||||||||||||||||
12,500
|
4.57 | % |
6.25
|
41.29 | % | 0 | % | $ |
42.25
|
|||||||||||||||
35,000
|
4.92 | % |
3.00
|
32.38 | % | 0 | % | $ |
25.19
|
|||||||||||||||
5,000
|
4.92 | % |
3.00
|
32.38 | % | 0 | % | $ |
23.35
|
Shares
|
Weighted Average Exercise Price
per Share
|
Weighted Average Remaining
Contractual Term (years)
|
Aggregate Intrinsic
Value
|
|||||||||||||
Outstanding
at December 31, 2006
|
1,288,575
|
$ |
35.51
|
7.45
|
$ |
44,443
|
||||||||||
Granted
|
52,500
|
89.77
|
||||||||||||||
Exercised
|
(274,583 | ) |
12.66
|
|||||||||||||
Forfeited
|
(21,625 | ) |
50.85
|
|||||||||||||
Expired
|
(20,000 | ) |
23.00
|
|||||||||||||
Outstanding at September 30,
2007
|
1,024,867
|
$ |
44.33
|
7.06
|
$ |
48,569
|
||||||||||
Vested
or expected to vest at September 30, 2007
|
954,951
|
43.63
|
9.38
|
45,914
|
||||||||||||
Exercisable at September 30,
2007
|
440,325
|
$ |
24.68
|
6.56
|
$ |
27,102
|
For the Three
Months
Ended September
30,
|
For the Nine
Months
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
Net income / (loss) available
for common shareholders
|
$ | (18,763 | ) | $ |
3,934
|
$ |
15,577
|
$ | (5,808 | ) | ||||||
Weighted average outstanding
shares of common stock (000’s)
|
41,489
|
40,651
|
41,077
|
39,792
|
||||||||||||
Dilutive
effect of employee stock options (000’s)
|
-
|
537
|
476
|
-
|
||||||||||||
Common stock and common stock
equivalents (000’s)
|
41,489
|
41,188
|
41,553
|
39,792
|
||||||||||||
Net income / (loss) per
share:
|
||||||||||||||||
Basic
|
$ | (0.45 | ) | $ |
0.09
|
$ |
0.38
|
$ | (0.14 | ) | ||||||
Diluted
|
$ | (0.45 | ) | $ |
0.09
|
$ |
0.37
|
$ | (0.14 | ) |
·
|
expenses
presented as corporate operating costs in our consolidated statements of
operations and comprehensive
income;
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments on assets or
investments).
|
For
the Three Months Ended September 30,
|
||||||||||||||||
Segment
Net Revenues (1)
|
Segment
EBITDA
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Country:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ | 7,055 | $ | 4,288 | $ | (2,981 | ) | $ | (4,558 | ) | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
51,140 | 40,141 | 25,989 | 17,234 | ||||||||||||
Romania
(2)
|
44,412 | 29,298 | 19,486 | 11,719 | ||||||||||||
Slovak
Republic (MARKIZA TV)
|
20,286 | 13,895 | 5,544 | 2,408 | ||||||||||||
Slovenia
(POP TV, KANAL A)
|
11,545 | 9,101 | 854 | 1,225 | ||||||||||||
Ukraine
(STUDIO 1+1)
|
39,582 | 15,578 | 16,599 | (838 | ) | |||||||||||
Ukraine
(KINO, CITI)
|
816 | 181 | (1,339 | ) | (1,182 | ) | ||||||||||
Total
segment data
|
$ | 174,836 | $ | 112,482 | $ | 64,152 | $ | 26,008 |
Consolidated
net revenues / (loss) / income before provision for income taxes, minority
interest and discontinued operations
|
$ | 174,836 | $ | 112,482 | $ | (14,121 | ) | $ | 1,784 | |||||||
Corporate
operating costs
|
- | - | 20,396 | 8,342 | ||||||||||||
Depreciation
of station property, plant and equipment
|
- | - | 8,768 | 6,080 | ||||||||||||
Amortization
of broadcast licenses and other intangibles
|
- | - | 6,595 | 5,015 | ||||||||||||
Interest
income
|
- | - | (1,180 | ) | (1,554 | ) | ||||||||||
Interest
expense
|
- | - | 11,883 | 11,066 | ||||||||||||
Foreign
currency exchange loss/(gain), net
|
- | - | 23,300 | (6,018 | ) | |||||||||||
Change
in fair value of derivatives
|
- | - | 8,555 | 881 | ||||||||||||
Other
income
|
- | - | (44 | ) | 412 | |||||||||||
Total
segment data
|
$ | 174,836 | $ | 112,482 | $ | 64,152 | $ | 26,008 |
For
the Nine Months Ended September 30,
|
||||||||||||||||
Segment
Net Revenues (1)
|
Segment
EBITDA
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Country:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ | 24,701 | $ | 13,745 | $ | (9,800 | ) | $ | (11,639 | ) | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
183,203 | 137,002 | 99,251 | 59,569 | ||||||||||||
Romania
(2)
|
135,978 | 96,938 | 57,152 | 39,756 | ||||||||||||
Slovak
Republic (MARKIZA TV)
|
68,615 | 45,147 | 23,012 | 9,258 | ||||||||||||
Slovenia
(POP TV, KANAL A)
|
44,309 | 34,883 | 12,243 | 10,688 | ||||||||||||
Ukraine
(STUDIO 1+1)
|
80,358 | 62,117 | 14,794 | 16,183 | ||||||||||||
Ukraine
(KINO, CITI) (3)
|
1,868 | 754 | (5,511 | ) | (1,736 | ) | ||||||||||
Total
segment data
|
$ | 539,032 | $ | 390,586 | $ | 191,141 | $ | 122,079 |
Consolidated
net revenues / income before provision for income taxes, minority
interest, equity in income of unconsolidated affiliates and discontinued
operations
|
$ | 539,032 | $ | 388,825 | $ | 44,067 | $ | 9,595 | ||||||||
Corporate
operating costs
|
- | - | 42,613 | 24,019 | ||||||||||||
Depreciation
of station property, plant and equipment
|
- | - | 23,347 | 17,841 | ||||||||||||
Amortization
of broadcast licenses and other intangibles
|
- | - | 16,922 | 13,967 | ||||||||||||
Impairment
charge
|
- | - | - | 748 | ||||||||||||
Unconsolidated
equity affiliates (4)
|
- | 1,761 | - | (1,283 | ) | |||||||||||
Interest
income
|
- | - | (4,326 | ) | (4,748 | ) | ||||||||||
Interest
expense
|
- | - | 42,717 | 32,921 | ||||||||||||
Foreign
currency exchange loss, net
|
- | - | 28,552 | 25,469 | ||||||||||||
Change
in fair value of derivatives
|
- | - | (3,497 | ) | 2,757 | |||||||||||
Other
expense
|
- | - | 746 | 793 | ||||||||||||
Total
segment data
|
$ | 539,032 | $ | 390,586 | $ | 191,141 | $ | 122,079 |
For the Three
Months
Ended September
30,
|
For the Nine
Months
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
Depreciation of station
property, plant and equipment and amortization of broadcast licenses and
other intangibles:
|
||||||||||||||||
Croatia
|
$ |
918
|
$ |
793
|
$ |
2,650
|
$ |
2,224
|
||||||||
Czech
Republic
|
7,187
|
5,957
|
20,337
|
17,365
|
||||||||||||
Romania
|
2,703
|
1,659
|
6,630
|
4,023
|
||||||||||||
Slovak
Republic
|
2,350
|
791
|
4,484
|
3,139
|
||||||||||||
Slovenia
|
1,212
|
952
|
3,308
|
2,492
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
792
|
821
|
2,336
|
2,323
|
||||||||||||
Ukraine
(KINO, CITI)
|
201
|
122
|
524
|
419
|
||||||||||||
Total
|
$ |
15,363
|
$ |
11,095
|
$ |
40,269
|
$ |
31,985
|
Unconsolidated
equity affiliates
|
-
|
-
|
-
|
(177 | ) | |||||||||||
Total consolidated depreciation
and amortization
|
$ |
15,363
|
$ |
11,095
|
$ |
40,269
|
$ |
31,808
|
||||||||
Represented
as follows:
|
||||||||||||||||
Depreciation
of station property, plant & equipment
|
8,768
|
6,080
|
23,347
|
17,841
|
||||||||||||
Amortization
of broadcast licenses and other intangibles
|
6,595
|
5,015
|
16,922
|
13,967
|
Total assets
(1):
|
||||||||
Croatia
|
$ |
35,640
|
$ |
30,394
|
||||
Czech
Republic
|
1,290,692
|
1,200,894
|
||||||
Romania
|
301,132
|
206,850
|
||||||
Slovak
Republic
|
190,542
|
86,872
|
||||||
Slovenia
|
79,168
|
67,919
|
||||||
Ukraine
(STUDIO 1+1)
|
89,442
|
75,020
|
||||||
Ukraine
(KINO, CITI)
|
18,481
|
13,293
|
||||||
Total segment
assets
|
$ |
2,005,097
|
$ |
1,681,242
|
||||
Reconciliation to condensed
consolidated balance sheets:
|
||||||||
Corporate
|
162,440
|
137,758
|
||||||
Total
assets
|
$ |
2,167,537
|
$ |
1,819,000
|
Long-lived assets
(1):
|
||||||||
Croatia
|
$ |
9,215
|
$ |
6,804
|
||||
Czech
Republic
|
51,440
|
28,002
|
||||||
Romania
|
38,493
|
32,312
|
||||||
Slovak
Republic
|
24,699
|
19,498
|
||||||
Slovenia
|
17,788
|
15,595
|
||||||
Ukraine
(STUDIO 1+1)
|
7,402
|
7,965
|
||||||
Ukraine
(KINO, CITI)
|
4,459
|
3,674
|
||||||
Total long-lived
assets
|
$ |
153,496
|
$ |
113,850
|
||||
Reconciliation to condensed
consolidated balance sheets:
|
||||||||
Corporate
|
1,500
|
1,955
|
||||||
Total long-lived
assets
|
$ |
154,996
|
$ |
115,805
|
For the Three
Months
Ended September
30,
|
For the Nine
Months
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
Tax
on disposal of discontinued operations
|
-
|
(2,333 | ) |
-
|
(4,863 | ) | ||||||||||
Net loss from discontinued
operations
|
$ |
-
|
$ | (2,333 | ) | $ |
-
|
$ | (4,863 | ) |
Croatia
|
$ |
12,245
|
||
Czech
Republic
|
46,697
|
|||
Romania
|
36,489
|
|||
Slovak
Republic
|
10,497
|
|||
Slovenia
|
4,221
|
|||
Ukraine
(STUDIO 1+1)
|
13,077
|
|||
Ukraine
(KINO, CITI)
|
192
|
|||
Total
|
$ |
123,418
|
2007
|
$ |
593
|
||
2008
|
2,088
|
|||
2009
|
1,159
|
|||
2010
|
925
|
|||
2011
|
394
|
|||
2012
and thereafter
|
-
|
|||
Total
|
$ |
5,159
|
Czech Republic
|
The
license of TV NOVA (Czech Republic) expires in January 2017. The
GALAXIE SPORT license expires in March
2014.
|
Ukraine
|
The
15-hour prime time and off prime time license of STUDIO 1+1 expires in
December 2016. The license to broadcast for the remaining nine hours in
off prime expires in August 2014. Licenses used for the KINO
and CITI channels expire on dates ranging from June 2008 to July
2016.
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Net
revenues
|
$ | 174,836 | $ | 112,482 | $ | 62,354 | ||||||
Operating
income
|
28,393 | 6,571 | 21,822 | |||||||||
Net
(loss) / income from continuing operations
|
(18,763 | ) | 6,267 | (25,030 | ) | |||||||
Net
(loss) / income
|
$ | (18,763 | ) | $ | 3,934 | $ | (22,697 | ) | ||||
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Net
revenues
|
$ | 539,032 | $ | 388,825 | $ | 150,207 | ||||||
Operating
income
|
108,259 | 66,787 | 41,472 | |||||||||
Net
income / (loss) from continuing operations
|
15,577 | (945 | ) | 16,522 | ||||||||
Net
income / (loss)
|
$ | 15,577 | $ | (5,808 | ) | $ | 21,385 |
|
·
|
In
the three months ended September 30, 2007, we reported growth in Segment
Net Revenues of 55% and Segment EBITDA of 147% compared to the three
months ended September 30, 2006, delivering a Segment EBITDA margin of 37%
compared to the 23% margin reported in the three months ended September
30, 2006 (Segment EBITDA is defined and reconciled to our consolidated
results in Part I, Item 1, Note
16).
|
|
·
|
Each
of our stations reported revenue growth in excess of 25% compared to the
three months ended September 30, 2006, with particularly strong growth
reported in Ukraine as a result of the level of political advertising
ahead of the parliamentary elections on September 30,
2007.
|
|
·
|
On
July 13, 2007, we acquired an additional 20.0% interest in Markiza for
aggregate consideration of SKK 1.9 billion (approximately US$ 78.5
million) and now own 100.0% of our Slovak Republic
operations.
|
|
·
|
On
August 22, 2007, we entered into a new facility with EBRD, ING and CS in
the amount of EUR 50.0 million, while at the same time reducing the
interest payable on our existing EUR 100.0 facility to EURIBOR
+1.625% from the previous EURIBOR +
2.75%.
|
|
·
|
On
August 30, 2007 we issued 1,275,227 shares of our Class A Common Stock to
Igor Kolomoisky for cash consideration of US$ 110.0
million. In connection with this investment,
Mr. Kolomoisky was appointed to our Board of
Directors.
|
|
·
|
On
August 30, 2007 we completed the registration of a 42% direct ownership
interest in Studio 1+1 via a Ukrainian subsidiary company,
thereby securing control over the Studio 1+1 broadcasting
licenses.
|
·
|
supporting
the growth of television advertising spending in our markets through our
existing operations and through the launch or acquisition of additional
channels to expand our advertising inventory and target niche
audiences;
|
·
|
pursuing
sub-regional efficiencies, especially in the area of local programming
between Slovenia and Croatia and between the Czech and Slovak
Republics;
|
·
|
leveraging
our existing brands and assets to develop new revenue opportunities,
including in the creation and distribution of programming and in the new
media sectors; and
|
·
|
continuing
to expand our footprint into additional Central and Eastern European
markets when financially prudent opportunities
arise.
|
·
|
additional
investment in Russian series and local programming by STUDIO 1+1, which
have driven ratings historically, and in our other Ukraine channels KINO
and CITI, which were launched in
2006;
|
·
|
expenses
presented as corporate operating costs in our condensed consolidated
statement of operations and comprehensive
income;
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments of assets or
investments).
|
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||||||
2007
|
(1 | ) |
2006
|
(1 | ) | |||||||||||
Segment Net
Revenue
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
7,055
|
4 | % | $ |
4,288
|
4 | % | ||||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
51,140
|
29 | % |
40,141
|
36 | % | ||||||||||
Romania
(2)
|
44,412
|
25 | % |
29,298
|
26 | % | ||||||||||
Slovak
Republic (MARKIZA TV)
|
20,286
|
12 | % |
13,895
|
12 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
11,545
|
7 | % |
9,101
|
8 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
39,582
|
23 | % |
15,578
|
14 | % | ||||||||||
Ukraine
(KINO, CITI)
|
816
|
-
|
181
|
-
|
||||||||||||
Total Segment Net
Revenues
|
$ |
174,836
|
100 | % | $ |
112,482
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
173,991
|
100 | % | $ |
111,931
|
100 | % | ||||||||
Non-broadcast
operations
|
845
|
-
|
551
|
-
|
||||||||||||
Total Segment
Revenues
|
$ |
174,836
|
100 | % | $ |
112,482
|
100 | % | ||||||||
Segment
EBITDA
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ | (2,981 | ) | (5 | )% | $ | (4,558 | ) | (17 | )% | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
25,989
|
41 | % |
17,234
|
66 | % | ||||||||||
Romania
(2)
|
19,486
|
30 | % |
11,719
|
45 | % | ||||||||||
Slovak
Republic (MARKIZA TV)
|
5,544
|
9 | % |
2,408
|
9 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
854
|
1 | % |
1,225
|
5 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
16,599
|
26 | % | (838 | ) | (3 | )% | |||||||||
Ukraine
(KINO, CITI)
|
(1,339 | ) | (2 | )% | (1,182 | ) | (5 | )% | ||||||||
Total Segment
EBITDA
|
$ |
64,152
|
100 | % | $ |
26,008
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
65,805
|
103 | % | $ |
26,119
|
100 | % | ||||||||
Non-broadcast
operations
|
(1,653 | ) | (3 | )% | (111 | ) |
-
|
|||||||||
Total Segment
EBITDA
|
$ |
64,152
|
100 | % | $ |
26,008
|
100 | % | ||||||||
Segment EBITDA Margin
(3)
|
37 | % | 23 | % |
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||||||
2007
|
(1 | ) |
2006
|
(1 | ) | |||||||||||
Segment Net
Revenue
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
24,701
|
5 | % | $ |
13,745
|
3 | % | ||||||||
Czech
Republic (TV NOVA)
|
183,203
|
34 | % |
137,002
|
35 | % | ||||||||||
Romania
(2)
|
135,978
|
25 | % |
96,938
|
25 | % | ||||||||||
Slovak
Republic (MARKIZA TV) (3)
|
68,615
|
13 | % |
45,147
|
12 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
44,309
|
8 | % |
34,883
|
9 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
80,358
|
15 | % |
62,117
|
16 | % | ||||||||||
Ukraine
(KINO, CITI) (4)
|
1,868
|
-
|
754
|
-
|
||||||||||||
Total Segment Net
Revenues
|
$ |
539,032
|
100 | % | $ |
390,586
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
536,964
|
100 | % | $ |
388,906
|
100 | % | ||||||||
Non-broadcast
operations
|
2,068
|
-
|
1,680
|
-
|
||||||||||||
Total Segment
Revenues
|
$ |
539,032
|
100 | % | $ |
390,586
|
100 | % | ||||||||
Segment
EBITDA
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ | (9,800 | ) | (5 | )% | $ | (11,639 | ) | (10 | )% | ||||||
Czech
Republic (TV NOVA)
|
99,251
|
52 | % |
59,569
|
49 | % | ||||||||||
Romania
(2)
|
57,152
|
30 | % |
39,756
|
32 | % | ||||||||||
Slovak
Republic (MARKIZA TV) (3)
|
23,012
|
12 | % |
9,258
|
8 | % | ||||||||||
Slovenia
(POP TV, KANAL A)
|
12,243
|
6 | % |
10,688
|
9 | % | ||||||||||
Ukraine
(STUDIO 1+1)
|
14,794
|
8 | % |
16,183
|
13 | % | ||||||||||
Ukraine
(KINO, CITI) (4)
|
(5,511 | ) | (3 | )% | (1,736 | ) | (1 | )% | ||||||||
Total Segment
EBITDA
|
$ |
191,141
|
100 | % | $ |
122,079
|
100 | % | ||||||||
Represented
by:
|
||||||||||||||||
Broadcast
operations
|
$ |
193,538
|
101 | % | $ |
122,035
|
100 | % | ||||||||
Non-broadcast
operations
|
(2,397 | ) | (1 | )% |
44
|
-
|
||||||||||
Total Segment
EBITDA
|
$ |
191,141
|
100 | % | $ |
122,079
|
100 | % | ||||||||
Segment EBITDA Margin
(5)
|
35 | % | 31 | % |
CROATIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
5,308
|
$ |
3,022
|
$ |
2,286
|
||||||
Non-spot
revenues
|
1,747
|
1,266
|
481
|
|||||||||
Segment Net
Revenues
|
$ |
7,055
|
$ |
4,288
|
$ |
2,767
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
6,976
|
$ |
4,284
|
$ |
2,692
|
||||||
Non-broadcast
operations
|
79
|
4
|
75
|
|||||||||
Segment Net
Revenues
|
$ |
7,055
|
$ |
4,288
|
$ |
2,767
|
||||||
Segment
EBITDA
|
$ | (2,981 | ) | $ | (4,558 | ) | $ |
1,577
|
||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (3,002 | ) | $ | (4,512 | ) | $ |
1,510
|
||||
Non-broadcast
operations
|
21
|
(46 | ) |
67
|
||||||||
Segment
EBITDA
|
$ | (2,981 | ) | $ | (4,558 | ) | $ |
1,577
|
||||
Segment EBITDA
Margin
|
(42 | )% | (106 | )% | 64 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2007 increased by US$ 2.8 million, or
65%, compared to the three months ended September 30, 2006. In
local currency, Segment Net Revenues increased by 52%. Spot
revenues increased by US$ 2.3 million, or 76%, as a result of significant
increases in the volume of GRPs sold and the average revenue per rating
point sold. Non-spot revenues increased by US$ 0.5 million, or
38%, as a result of increased levels of
sponsorship.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 was a loss of US$ 3.0 million
compared to a loss of US$ 4.6 million in the three months ended September
30, 2006, an improvement of 35%. In local currency, Segment
EBITDA improved by 40%.
|
CROATIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
18,812
|
$ |
10,773
|
$ |
8,039
|
||||||
Non-spot
revenues
|
5,889
|
2,972
|
2,917
|
|||||||||
Segment Net
Revenues
|
$ |
24,701
|
$ |
13,745
|
$ |
10,956
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
24,592
|
$ |
13,741
|
$ |
10,851
|
||||||
Non-broadcast
operations
|
109
|
4
|
105
|
|||||||||
Segment Net
Revenues
|
$ |
24,701
|
$ |
13,745
|
$ |
10,956
|
||||||
Segment
EBITDA
|
$ | (9,800 | ) | $ | (11,639 | ) | $ |
1,839
|
||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (9,769 | ) | $ | (11,593 | ) | $ |
1,824
|
||||
Non-broadcast
operations
|
(31 | ) | (46 | ) |
15
|
|||||||
Segment
EBITDA
|
$ | (9,800 | ) | $ | (11,639 | ) | $ |
1,839
|
||||
Segment EBITDA
Margin
|
(40 | )% | (85 | )% | 45 | % |
·
|
Segment Net Revenues for
the nine months ended September 30, 2007 increased by US$ 11.0 million, or
80%, compared to the nine months ended September 30, 2006. In
local currency, Segment Net Revenues increased by 67%. Spot
revenues increased by US$ 8.0 million, or 75%, as a result of a
significant increase in the volume of GRPs sold, augmented by increased
prices. Non-spot revenues increased by US$ 2.9 million, or 98%,
as a result of increased levels of
sponsorship.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2007 was a loss of US$ 9.8 million
compared to a loss of US$ 11.6 million in the nine months ended September
30, 2006, an improvement of 16%. In local currency, Segment
EBITDA improved by 22%.
|
CZECH REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
45,541
|
$ |
35,757
|
$ |
9,784
|
||||||
Non-spot
revenues
|
5,599
|
4,384
|
1,215
|
|||||||||
Segment Net
Revenues
|
$ |
51,140
|
$ |
40,141
|
$ |
10,999
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
51,032
|
$ |
39,957
|
$ |
11,075
|
||||||
Non-broadcast
operations
|
108
|
184
|
(76 | ) | ||||||||
Segment Net
Revenues
|
$ |
51,140
|
$ |
40,141
|
$ |
10,999
|
||||||
Segment
EBITDA
|
$ |
25,989
|
$ |
17,234
|
$ |
8,755
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
26,258
|
$ |
17,202
|
$ |
9,056
|
||||||
Non-broadcast
operations
|
(269 | ) |
32
|
(301 | ) | |||||||
Segment
EBITDA
|
$ |
25,989
|
$ |
17,234
|
$ |
8,755
|
||||||
Segment EBITDA
Margin
|
51 | % | 43 | % | 8 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2007 increased by US$ 11.0 million,
or 27%, compared to the three months ended September 30,
2006. In local currency, Segment Net Revenues increased by
16%. Spot revenues increased by US$ 9.8 million, or 27%,
primarily due to increased average revenue per rating point sold, as well
as small increase in the volume of GRPs sold. Non-spot revenue increased
by US$ 1.2 million, or 28%, primarily due to increased
sponsorship.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 8.8 million, or
51%, compared to the three months ended September 30, 2006, resulting in
an EBITDA margin of 51% compared to 43% in the three months ended
September 30, 2006. In local currency, Segment EBITDA increased
by 36%. Costs charged in arriving at Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 2.2 million, or
10%, compared to the three months ended September 30,
2006. Cost of programming increased by US$ 2.6 million, or 23%,
due to increased investment in both local productions and syndicated
programming, particularly in July and August, in order to maintain market
share. Other operating costs decreased by US$ 0.7 million, or
12%, due to lower salary and wage costs, partially offset by higher
transmission costs as a result of increased transmitter coverage and also
higher music rights costs. Selling, general and administrative
expenses increased by US$ 0.3 million, or 5%, primarily due to increased
office running costs and marketing and research costs, partially offset by
a reduction in consultancy fees.
|
CZECH REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
166,253
|
$ |
118,590
|
$ |
47,663
|
||||||
Non-spot
revenues
|
16,950
|
18,412
|
(1,462 | ) | ||||||||
Segment Net
Revenues
|
$ |
183,203
|
$ |
137,002
|
$ |
46,201
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
183,001
|
$ |
136,451
|
$ |
46,550
|
||||||
Non-broadcast
operations
|
202
|
551
|
(349 | ) | ||||||||
Segment Net
Revenues
|
$ |
183,203
|
$ |
137,002
|
$ |
46,201
|
||||||
Segment
EBITDA
|
$ |
99,251
|
$ |
59,569
|
$ |
39,682
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
100,017
|
$ |
59,521
|
$ |
40,496
|
||||||
Non-broadcast
operations
|
(766 | ) |
48
|
(814 | ) | |||||||
Segment
EBITDA
|
$ |
99,251
|
$ |
59,569
|
$ |
39,682
|
||||||
Segment EBITDA
Margin
|
54 | % | 43 | % | 11 | % |
·
|
Segment Net Revenues for
the nine months ended September 30, 2007 increased by US$ 46.2 million, or
34%, compared to the nine months ended September 30, 2006. In
local currency, Segment Net Revenues increased by 22%. Spot
revenues increased by US$ 47.7 million, or 40%, primarily due to an
increase in the volume of GRPs sold, particularly in the first half as
well as increased average revenue per rating point sold. Non-spot revenue
decreased by US$ 1.5 million, or 8%, primarily due to a reduction in the
number of shows generating voting revenue in the nine months ended
September 30, 2007 compared to those programs broadcast in the nine months
ended September 30, 2006 and a reduction in votes in the shows that were
broadcast, partially offset by increased
sponsorship.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2007 increased by US$ 39.7 million, or
67%, compared to the nine months ended September 30, 2006, resulting in an
EBITDA margin of 54% compared to 43% in the nine months ended September
30, 2006. In local currency, Segment EBITDA increased by
52%. Costs charged in arriving at Segment EBITDA for the nine
months ended September 30, 2007 increased by US$ 6.5 million, or 8%,
compared to the nine months ended September 30, 2006. Cost of
programming increased by US$ 2.7 million, or 6%, due to a combination of
the impact of price inflation on foreign programming and increased
investment in local productions. Other operating costs
increased by US$ 3.6 million, or 19%, primarily due to increased accruals
for performance-related bonus payments, as well as higher transmission
costs as a result of increased transmitter coverage and also higher music
rights costs. Selling, general and administrative expenses
increased by US$ 0.2 million, or 1%, due to increased office running costs
and marketing and research costs, partially offset by a reduction in
consultancy fees.
|
ROMANIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
41,146
|
$ |
27,239
|
$ |
13,907
|
||||||
Non-spot
revenues
|
3,266
|
2,059
|
1,207
|
|||||||||
Segment Net
Revenues
|
$ |
44,412
|
$ |
29,298
|
$ |
15,114
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
44,326
|
$ |
29,298
|
$ |
15,028
|
||||||
Non-broadcast
operations
|
86
|
-
|
86
|
|||||||||
Segment Net
Revenues
|
$ |
44,412
|
$ |
29,298
|
$ |
15,114
|
||||||
Segment
EBITDA
|
$ |
19,486
|
$ |
11,719
|
$ |
7,767
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
19,613
|
$ |
11,733
|
$ |
7,880
|
||||||
Non-broadcast
operations
|
(127 | ) | (14 | ) | (113 | ) | ||||||
Segment
EBITDA
|
$ |
19,486
|
$ |
11,719
|
$ |
7,767
|
||||||
Segment EBITDA
Margin
|
44 | % | 40 | % | 4 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2007 increased by US$ 15.1 million,
or 52%, compared to the three months ended September 30, 2006. Spot
revenues increased by US$ 13.9 million, or 51%, driven primarily by
increases in the average revenue per rating point sold in each of our
channels, which more than offset a decline in the volume of GRPs sold.
Non-spot revenues increased by US$ 1.2 million, or 59%, primarily due to
increased cable tariff revenue. The acquisition of Sport.ro added
approximately US$ 1.9 million to our revenues for the three months ended
September 30, 2007.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 7.8 million, or
66%, compared to the three months ended September 30, 2006, resulting in
an EBITDA margin of 44%, compared to 40% in the three months ended
September 30, 2006. Costs charged in arriving at Segment EBITDA
for the three months ended September 30, 2007 increased by US$ 7.3
million, or 42%, compared to the three months ended September 30,
2006. Cost of programming grew by US$ 4.4 million, or 41%, due
partially to the inclusion of the salary-related costs of production staff
within cost of programming rather than operating costs; excluding the
impact of this change in classification, cost of programming increased by
US$ 1.7 million, or 16%, as a result of increased market competition and
investment in quality programming. Other operating costs
increased by US$ 1.5 million, or 30%, after the difference in
classification described above; excluding the impact of this change in
classification, other operating costs increased by US$ 4.2 million, or
83%, primarily due to the impact of a weaker dollar on local currency
denominated staffing costs and an increase in social security
costs. Selling, general and administrative expenses increased
by US$ 1.4 million, or 79%, primarily due to increased consultancy fees,
increased office running costs and increased marketing and research
costs. The acquisition of Sport.ro added approximately US$ 0.3
million to our Segment EBITDA for the three months ended September 30,
2007.
|
ROMANIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
126,750
|
$ |
91,109
|
$ |
35,641
|
||||||
Non-spot
revenues
|
9,228
|
5,829
|
3,399
|
|||||||||
Segment Net
Revenues
|
$ |
135,978
|
$ |
96,938
|
$ |
39,040
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
135,836
|
$ |
96,938
|
$ |
38,898
|
||||||
Non-broadcast
operations
|
142
|
-
|
142
|
|||||||||
Segment Net
Revenues
|
$ |
135,978
|
$ |
96,938
|
$ |
39,040
|
||||||
Segment
EBITDA
|
$ |
57,152
|
$ |
39,756
|
$ |
17,396
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
57,512
|
$ |
39,770
|
$ |
17,742
|
||||||
Non-broadcast
operations
|
(360 | ) | (14 | ) | (346 | ) | ||||||
Segment
EBITDA
|
$ |
57,152
|
$ |
39,756
|
$ |
17,396
|
||||||
Segment EBITDA
Margin
|
42 | % | 41 | % | 1 | % |
·
|
Segment Net Revenues for
the nine months ended September 30, 2007 increased by US$ 39.0 million, or
40%, compared to the nine months ended September 30, 2006. Spot revenues
increased by US$ 35.6 million, or 39%, driven primarily by increases in
the average revenue per rating point sold in each of our channels, which
more than offset a decline in the volume of GRPs sold, particularly in the
first half. Non-spot revenues increased by US$ 3.4 million, or 58%,
primarily due to increased cable tariff revenue. The acquisition of
Sport.ro added approximately US$ 4.8 million to our revenues for the nine
months ended September 30, 2007.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 7.8 million, or
66%, compared to the three months ended September 30, 2006, resulting in
an EBITDA margin of 44%, compared to 40% in the three months ended
September 30, 2006. Costs charged in arriving at Segment EBITDA
for the three months ended September 30, 2007 increased by US$ 7.3
million, or 42%, compared to the three months ended September 30,
2006. Cost of programming grew by US$ 4.4 million, or 41%, due
partially to the inclusion of the salary-related costs of production staff
within cost of programming rather than operating costs; excluding the
impact of this change in classification, cost of programming increased by
US$ 1.7 million, or 16%, as a result of increased market competition and
investment in quality programming. Other operating costs
increased by US$ 1.5 million, or 30%, after the difference in
classification described above; excluding the impact of this change in
classification, other operating costs increased by US$ 4.2 million, or
83%, primarily due to the impact of a weaker dollar on local currency
denominated staffing costs and an increase in social security
costs. Selling, general and administrative expenses increased
by US$ 1.4 million, or 79%, primarily due to increased consultancy fees,
increased office running costs and increased marketing and research
costs. The acquisition of Sport.ro added approximately US$ 0.3
million to our Segment EBITDA for the three months ended September 30,
2007.
|
SLOVAK REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
19,344
|
$ |
12,735
|
$ |
6,609
|
||||||
Non-spot
revenues
|
942
|
1,160
|
(218 | ) | ||||||||
Segment Net
Revenues
|
$ |
20,286
|
$ |
13,895
|
$ |
6,391
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
20,183
|
$ |
13,880
|
$ |
6,303
|
||||||
Non-broadcast
operations
|
103
|
15
|
88
|
|||||||||
Segment Net
Revenues
|
$ |
20,286
|
$ |
13,895
|
$ |
6,391
|
||||||
Segment
EBITDA
|
$ |
5,544
|
$ |
2,408
|
$ |
3,136
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
5,656
|
$ |
2,460
|
$ |
3,196
|
||||||
Non-broadcast
operations
|
(112 | ) | (52 | ) | (60 | ) | ||||||
Segment
EBITDA
|
$ |
5,544
|
$ |
2,408
|
$ |
3,136
|
||||||
Segment EBITDA
Margin
|
27 | % | 17 | % | 10 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2007 increased by US$ 6.4 million, or
46%, compared to the three months ended September 30, 2006. In
local currency, Segment Net Revenues increased by 19%. The
increase in Segment Net Revenues was due to an increase of US$ 6.6
million, or 52%, in spot revenues, offset by a decrease of US$ 0.2
million, or 19%, in non-spot revenues. The increase in spot
revenues is mainly due to an increase in the average revenue per rating
point sold, as well as a slight increase in the volume of GRPs
sold.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 3.1 million, or
130%, compared to the three months ended September 30, 2006, resulting in
an EBITDA margin of 27%, compared to 17% in the three months ended
September 30, 2006. In local currency, Segment EBITDA increased
by 88%. Costs charged in arriving at Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 3.3 million, or
29%, compared to the three months ended September 30,
2006. Cost of programming increased by US$ 2.4 million, or 45%,
primarily due to increased investment in local productions such as a local
version of Pop Idol, which was launched in September 2007, and syndicated
programming. Other operating costs increased by US$ 0.9
million, or 22%, primarily due to increased salary and wage costs and
increased broadcast and operating expenses. Selling, general
and administrative expenses were in line with the three months ended
September 30, 2006.
|
SLOVAK REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
65,913
|
$ |
42,231
|
$ |
23,682
|
||||||
Non-spot
revenues
|
2,702
|
2,916
|
(214 | ) | ||||||||
Segment Net
Revenues
|
$ |
68,615
|
$ |
45,147
|
$ |
23,468
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
68,408
|
$ |
45,126
|
$ |
23,282
|
||||||
Non-broadcast
operations
|
207
|
21
|
186
|
|||||||||
Segment Net
Revenues
|
$ |
68,615
|
$ |
45,147
|
$ |
23,468
|
||||||
Segment
EBITDA
|
$ |
23,012
|
$ |
9,258
|
$ |
13,754
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
23,409
|
$ |
9,329
|
$ |
14,080
|
||||||
Non-broadcast
operations
|
(397 | ) | (71 | ) | (326 | ) | ||||||
Segment
EBITDA
|
$ |
23,012
|
$ |
9,258
|
$ |
13,754
|
||||||
Segment EBITDA
Margin
|
34 | % | 21 | % | 13 | % |
·
|
Segment Net Revenues for
the nine months ended September 30, 2007 increased by US$ 23.5 million, or
52%, compared to the nine months ended September 30, 2006. In
local currency, Segment Net Revenues increased by 31%. The
increase in Segment Net Revenues was due to an increase of US$ 23.7
million, or 56%, in spot revenues, partially offset by a decrease of US$
0.2 million in non-spot revenues. The increase in spot revenues
is mainly due to an increase in the average revenue per rating point sold
as well as an increase in the volume of GRPs sold. Our
advertising revenues benefited from the launch of a new mobile phone
operator during the nine months ended September 30, 2007, as well as
increased spending from existing customers, particularly in the
pharmaceutical sector. Segment Net Revenues for the nine months
ended September 30, 2006 included approximately US$ 1.8 million in respect
of the period prior to January 23, 2006 when Markiza was accounted for as
an equity affiliate.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2007 increased by US$ 13.8 million, or
149%, compared to the nine months ended September 30, 2006, resulting in
an EBITDA margin of 34% compared to 21% in the nine months ended September
30, 2006. In local currency, Segment EBITDA increased by
81%. Costs charged in arriving at Segment EBITDA for the nine
months ended September 30, 2007 increased by US$ 9.7 million, or 27%,
compared to the nine months ended September 30, 2006. Cost of
programming increased by US$ 5.6 million, or 30%, due to increased
investment in local productions and syndicated programming; the amount
charged in the nine months ended September 30, 2006 included a charge of
US$ 0.7 million to write off an unsuccessful show. Other
operating costs increased by US$ 3.2 million, or 28%, due to increase
salary and wage costs, increased accruals for performance-related bonus
payments, increased broadcast and operating expenses and increased music
right costs. Selling, general and administrative expenses
increased by US$ 0.9 million, or 16%, primarily due to increased
consultancy and increased marketing and research costs, in addition to
increased office running costs. Costs charged in arriving at
Segment EBITDA for the nine months ended September 30, 2006 included US$
1.7 million of programming costs, US$ 0.9 million of other operating costs
and US$ 0.4 million of selling, general and administrative expenses in
respect of the period prior to January 23, 2006, when Markiza was
accounted for as an equity
affiliate.
|
SLOVENIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
10,413
|
$ |
8,637
|
$ |
1,776
|
||||||
Non-spot
revenues
|
1,132
|
464
|
668
|
|||||||||
Segment Net
Revenues
|
$ |
11,545
|
$ |
9,101
|
$ |
2,444
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
11,076
|
$ |
8,753
|
$ |
2,323
|
||||||
Non-broadcast
operations
|
469
|
348
|
121
|
|||||||||
Segment Net
Revenues
|
$ |
11,545
|
$ |
9,101
|
$ |
2,444
|
||||||
Segment
EBITDA
|
$ |
854
|
$ |
1,225
|
$ | (371 | ) | |||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
1,869
|
$ |
1,256
|
$ |
613
|
||||||
Non-broadcast
operations
|
(1,015 | ) | (31 | ) | (984 | ) | ||||||
Segment
EBITDA
|
$ |
854
|
$ |
1,225
|
$ | (371 | ) | |||||
Segment EBITDA
Margin
|
7 | % | 13 | % | (6 | )% |
·
|
Segment Net Revenues for
the three months ended September 30, 2007 increased by US$ 2.4 million, or
27%, compared to the three months ended September 30,
2006. Spot revenues increased by US$ 1.8 million, or 21%, as
our operations benefited from an increase in the average revenue per GRP
sold, which more than offset a slight decline in
volume. Non-spot revenues increased by US$ 0.7 million, or
144%, due to increased short message service (“SMS”) revenues and also
increased sponsorship.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 decreased by US$ 0.4 million, or
30%, compared to the three months September 30, 2006, resulting in an
EBITDA margin of 7% compared to 13% in the three months ended September
30, 2006. Costs charged in arriving at Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 2.8 million, or
36%, compared to the three months ended September 30,
2006. Cost of programming grew by US$ 2.7 million, or 83%, due
to increased investment in programming in a more competitive market
environment. We expect to continue to increase our investment in
programming in order to maintain our market leading
position. Other operating costs decreased by US$ 0.4 million,
or 13%, primarily due to lower salary and freelance
costs. Selling, general and administrative expenses increased
by US$ 0.5 million, or 34%, primarily due to higher consultancy fees, in
addition to higher office running
costs.
|
SLOVENIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
39,173
|
$ |
33,312
|
$ |
5,861
|
||||||
Non-spot
revenues
|
5,136
|
1,571
|
3,565
|
|||||||||
Segment Net
Revenues
|
$ |
44,309
|
$ |
34,883
|
$ |
9,426
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
42,901
|
$ |
33,779
|
$ |
9,122
|
||||||
Non-broadcast
operations
|
1,408
|
1,104
|
304
|
|||||||||
Segment Net
Revenues
|
$ |
44,309
|
$ |
34,883
|
$ |
9,426
|
||||||
Segment
EBITDA
|
$ |
12,243
|
$ |
10,688
|
$ |
1,555
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
12,752
|
$ |
10,561
|
$ |
2,191
|
||||||
Non-broadcast
operations
|
(509 | ) |
127
|
(636 | ) | |||||||
Segment
EBITDA
|
$ |
12,243
|
$ |
10,688
|
$ |
1,555
|
||||||
Segment EBITDA
Margin
|
28 | % | 31 | % | (3 | )% |
·
|
Segment Net Revenues for
the nine months ended September 30, 2007 increased by US$ 9.4 million, or
27%, compared to the nine months ended September 30, 2006. Spot
revenues increased by US$ 5.9 million, or 18%, as our operations benefited
from an increase in the average revenue per rating point sold, which more
than offset a slight decline in the volume of GRPs
sold. Non-spot revenues increased by US$ 3.6 million, or 227%,
due to an increased level of sponsorship, and increased SMS
revenues.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2007 increased by US$ 1.6 million, or 15%,
compared to the nine months ended September 30, 2006, resulting in an
EBITDA margin of 28% compared to 31% in the nine months ended September
30, 2006. Costs charged in arriving at Segment EBITDA for the
nine months ended September 30, 2007 increased by US$ 7.9 million, or 33%,
compared to the nine months ended September 30, 2006. Cost of
programming grew by US$ 7.5 million, or 71%, due to increased investment
in programming in a more competitive market environment. Other
operating costs decreased by US$ 1.1 million, or 12%, primarily due to
lower salary and freelance costs, partially offset by higher music rights
costs and higher transmitter and associated maintenance
costs. Selling, general and administrative expenses increased
by US$ 1.5 million, or 38%, primarily due to higher marketing and research
costs, higher consultancy fees and higher office running
costs.
|
UKRAINE (STUDIO 1+1) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
34,461
|
$ |
14,413
|
$ |
20,048
|
||||||
Non-spot
revenues
|
5,121
|
1,165
|
3,956
|
|||||||||
Segment Net
Revenues
|
$ |
39,582
|
$ |
15,578
|
$ |
24,004
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
39,582
|
$ |
15,578
|
$ |
24,004
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
39,582
|
$ |
15,578
|
$ |
24,004
|
||||||
Segment
EBITDA
|
$ |
16,599
|
$ | (838 | ) | $ |
17,437
|
|||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
16,750
|
$ | (838 | ) | $ |
17,588
|
|||||
Non-broadcast
operations
|
(151 | ) |
-
|
(151 | ) | |||||||
Segment
EBITDA
|
$ |
16,599
|
$ | (838 | ) | $ |
17,437
|
|||||
Segment EBITDA
Margin
|
42 | % | (5 | )% | 47 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2007 increased by US$ 24.0 million,
or 154%, compared to the three months ended September 30, 2006. Spot
revenues increased by US$ 20.0 million, or 139%, primarily due to an
estimated US$ 16.5 million of political advertising generated from the
elections held on September 30, 2007. We achieved a very strong increase
in the average revenue per rating point sold as well as a slight increase
in the volume of GRPs sold Non-spot revenues increased by US$
4.0 million, or 340%, primarily due to increased sponsorship, including
US$ 1.5 million in political advertising, and the sale of surplus
programming.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 increased by US$ 17.4 million,
compared to the three months ended September 30, 2006, resulting in an
EBITDA margin of 42% compared to a (5)% Segment EBITDA margin loss in the
three months ended September 30, 2006. Costs charged in
arriving at Segment EBITDA for the three months ended September 30, 2007
increased by US$ 6.6 million, or 40%, compared to the three months ended
September 30, 2006. Cost of programming grew by US$ 6.5
million, or 67%, with the increase reflecting continued price inflation
for Russian programming, which drives strong ratings in the market, as
well as increased investment in such programming to improve our
programming schedule and boost ratings following disappointing ratings
earlier in the year. Other operating costs increased by US$ 1.6
million, or 45%, primarily due to increased salary costs in addition to
increased broadcast operating expenses. Selling, general and
administrative expenses decreased by US$ 1.5 million, or 45%, primarily
due to decreased taxes, partially offset by higher office running
costs.
|
UKRAINE (STUDIO 1+1) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
67,567
|
$ |
54,988
|
$ |
12,579
|
||||||
Non-spot
revenues
|
12,791
|
7,129
|
5,662
|
|||||||||
Segment Net
Revenues
|
$ |
80,358
|
$ |
62,117
|
$ |
18,241
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
80,358
|
$ |
62,117
|
$ |
18,241
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
80,358
|
$ |
62,117
|
$ |
18,241
|
||||||
Segment
EBITDA
|
$ |
14,794
|
$ |
16,183
|
$ | (1,389 | ) | |||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
15,128
|
$ |
16,183
|
$ | (1,055 | ) | |||||
Non-broadcast
operations
|
(334 | ) |
-
|
(334 | ) | |||||||
Segment
EBITDA
|
$ |
14,794
|
$ |
16,183
|
$ | (1,389 | ) | |||||
Segment EBITDA
Margin
|
18 | % | 26 | % | (8 | )% |
·
|
Segment Net Revenues for
the nine months ended September 30, 2007 increased by US$ 18.2 million, or
29%, compared to the nine months ended September 30, 2006. Spot revenues
increased by US$ 12.6 million, or 23%, primarily due to an estimated US$
16.5 million of political advertising generated from the elections held on
September 30, 2007. This offset a decline in revenues from a
decrease in the volume of GRPs sold in the first half as our ratings
declined due to the poor performance of certain series on Studio 1+1 and
increased competition from other broadcasters. In the nine
months ended September 30, 2006, we received US$ 8.4 million of political
advertising revenue ahead of the parliamentary elections in March 2006 and
benefited from the extraordinary ratings success of the Russian series
Ugly Betty, which ran until July 2006. Non-spot revenues increased by US$
5.7 million, or 79%, primarily due to the sale of surplus programming and
increased sponsorship, including political
advertising.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2007 decreased by US$ 1.4 million, or 9%,
compared to the nine months ended September 30, 2006, resulting in an
EBITDA margin of 18% compared to an EBITDA margin of 26% in the nine
months ended September 30, 2006. Costs charged in arriving at
Segment EBITDA for the nine months ended September 30, 2007 increased by
US$ 19.6 million, or 43%, compared to the nine months ended September 30,
2006. Cost of programming grew by US$ 19.4 million, or 72%,
including a charge of US$ 2.7 million in the first half to write off
poorly performing programming, principally second runs of American
series. The increase in cost of programming reflects continued
price inflation for Russian programming, which drives strong ratings in
the market, as well as increased investment in such programming to improve
our programming schedule and boost ratings following disappointing ratings
earlier in the year in comparison with unusually strong programming on
Inter. Other operating costs increased by US$ 3.1 million, or
30%, due to increased salary costs and increased broadcast operating
expenses. Selling, general and administrative expenses
decreased by US$ 2.9 million, or 34%, primarily due to decreased taxes and
reduced bad debt expense, partially offset by higher office running
costs.
|
UKRAINE (KINO, CITI) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
305
|
$ |
41
|
$ |
264
|
||||||
Non-spot
revenues
|
511
|
140
|
371
|
|||||||||
Segment Net
Revenues
|
$ |
816
|
$ |
181
|
$ |
635
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
816
|
$ |
181
|
$ |
635
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
816
|
$ |
181
|
$ |
635
|
||||||
Segment
EBITDA
|
$ | (1,339 | ) | $ | (1,182 | ) | $ | (157 | ) | |||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (1,339 | ) | $ | (1,182 | ) | $ | (157 | ) | |||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
EBITDA
|
$ | (1,339 | ) | $ | (1,182 | ) | $ | (157 | ) | |||
Segment EBITDA
Margin
|
(164 | )% | (653 | )% | 489 | % |
·
|
Segment Net Revenues for
the three months ended September 30, 2007 increased by US$ 0.6 million, or
351%, compared to the three months ended September 30, 2006. Spot revenues
increased by US$ 0.3 million, or 644%. Non-spot revenues
increased by US$ 0.4 million, or 265%, primarily due to increased program
sponsorship.
|
·
|
Segment EBITDA for the
three months ended September 30, 2007 decreased by US$ 0.2 million, or
13%, compared to the three months ended September 30,
2006. Costs charged in arriving at Segment EBITDA for the three
months ended September 30, 2007 increased by US$ 0.8 million, or 57%,
compared to the three months ended September 30, 2006 as we continued to
develop the channels. Cost of programming grew by US$ 0.2
million, or 23%. Other operating costs increased by US$ 0.6
million. Selling, general and administrative expenses were in
line with the three months ended September 30,
2006.
|
UKRAINE (KINO, CITI) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006(1)
|
Movement
|
||||||||||
Spot
revenues
|
$ |
783
|
$ |
362
|
$ |
421
|
||||||
Non-spot
revenues
|
1,085
|
392
|
693
|
|||||||||
Segment Net
Revenues
|
$ |
1,868
|
$ |
754
|
$ |
1,114
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
1,868
|
$ |
754
|
$ |
1,114
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
1,868
|
$ |
754
|
$ |
1,114
|
||||||
Segment
EBITDA
|
$ | (5,511 | ) | $ | (1,736 | ) | $ | (3,775 | ) | |||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (5,511 | ) | $ | (1,736 | ) | $ | (3,775 | ) | |||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
EBITDA
|
$ | (5,511 | ) | $ | (1,736 | ) | $ | (3,775 | ) | |||
Segment EBITDA
Margin
|
(295 | )% | (230 | )% | (65 | )% |
·
|
Segment Net Revenues for
the nine months ended September 30, 2007 increased by US$ 1.1 million, or
148%, compared to the nine months ended September 30, 2006. Spot revenues
increased by US$ 0.4 million, or 116%. Non-spot revenues
increased by US$ 0.7 million, or 177%, primarily due to increased program
sponsorship.
|
·
|
Segment EBITDA for the
nine months ended September 30, 2007 decreased by US$ 3.8 million, or
217%, compared to the nine months ended September 30,
2006. Costs charged in arriving at Segment EBITDA for the nine
months ended September 30, 2007 increased by US$ 4.9 million, or 195%,
compared to the nine months ended September 30, 2006 as we continued to
develop the channels. Cost of programming grew by US$ 3.2
million, or 255%. Other operating costs increased by US$ 1.2
million, or 169%. Selling, general and administrative expenses
increased by US$ 0.5 million, or
89%.
|
For the Three Months
Ended September
30,
(US$
000’s)
|
For the Nine Months
Ended September
30,
(US$
000’s)
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Production
expenses
|
$ |
27,257
|
$ |
22,932
|
$ |
95,590
|
$ |
71,952
|
||||||||
Program
amortization
|
38,652
|
24,988
|
119,445
|
77,236
|
||||||||||||
Cost of
programming
|
$ |
65,909
|
$ |
47,920
|
$ |
215,035
|
$ |
149,188
|
|
·
|
US$
7.3 million of additional programming costs from our Slovak Republic
operations, which have been consolidated for the entire nine-month period
in 2007;
|
For the Three Months
Ended
September 30,
(US$
000’s)
|
For the Nine Months
Ended
September 30,
(US$
000’s)
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Program
amortization: (1)
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
3,142
|
$ |
2,640
|
$ |
13,777
|
$ |
9,530
|
||||||||
Czech
Republic (TV NOVA)
|
6,730
|
5,263
|
20,581
|
19,152
|
||||||||||||
Romania
(PRO TV, ACASA, PRO CINEMA, PRO TV INTERNATIONAL and
SPORT.RO)
|
8,314
|
5,809
|
27,649
|
19,599
|
||||||||||||
Slovak
Republic (MARKIZA TV) (post-acquisition)
|
4,391
|
2,301
|
10,567
|
6,379
|
||||||||||||
Slovenia
(POP TV and KANAL A)
|
2,342
|
1,418
|
6,784
|
4,623
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
13,076
|
7,139
|
37,566
|
19,149
|
||||||||||||
Ukraine
(KINO, CITI)
|
657
|
418
|
2,521
|
539
|
||||||||||||
$ |
38,652
|
$ |
24,988
|
$ |
119,445
|
$ |
78,971
|
Cash
paid for programming:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
5,484
|
$ |
4,341
|
$ |
16,391
|
$ |
11,939
|
||||||||
Czech
Republic (TV NOVA)
|
6,814
|
2,941
|
17,662
|
19,154
|
||||||||||||
Romania
(PRO TV, ACASA, PRO CINEMA, PRO TV INTERNATIONAL and
SPORT.RO)
|
19,875
|
15,786
|
42,852
|
33,181
|
||||||||||||
Slovak
Republic (MARKIZA TV)
|
3,585
|
2,831
|
11,750
|
8,373
|
||||||||||||
Slovenia
(POP TV and KANAL A)
|
3,568
|
2,373
|
8,220
|
5,872
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
16,509
|
13,241
|
43,023
|
26,923
|
||||||||||||
Ukraine
(KINO, CITI)
|
375
|
273
|
1,537
|
388
|
||||||||||||
$ |
56,210
|
$ |
41,786
|
$ |
141,435
|
$ |
105,830
|
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
7,055
|
$ |
4,288
|
$ |
2,767
|
||||||
Czech
Republic
|
51,140
|
40,141
|
10,999
|
|||||||||
Romania
|
44,414
|
29,298
|
15,116
|
|||||||||
Slovak
Republic
|
20,284
|
13,895
|
6,389
|
|||||||||
Slovenia
|
11,545
|
9,101
|
2,444
|
|||||||||
Ukraine
(STUDIO 1+1)
|
39,582
|
15,578
|
24,004
|
|||||||||
Ukraine
(KINO, CITI)
|
816
|
181
|
635
|
|||||||||
Total Consolidated Net
Revenues
|
$ |
174,836
|
$ |
112,482
|
$ |
62,354
|
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
24,701
|
$ |
13,745
|
$ |
10,956
|
||||||
Czech
Republic
|
183,203
|
137,002
|
46,201
|
|||||||||
Romania
|
135,978
|
96,938
|
39,040
|
|||||||||
Slovak
Republic *
|
68,615
|
43,386
|
25,229
|
|||||||||
Slovenia
|
44,309
|
34,883
|
9,426
|
|||||||||
Ukraine
(STUDIO 1+1)
|
80,358
|
62,117
|
18,241
|
|||||||||
Ukraine
(KINO, CITI)
|
1,868
|
754
|
1,114
|
|||||||||
Total Consolidated Net
Revenues
|
$ |
539,032
|
$ |
388,825
|
$ |
150,207
|
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
costs
|
$ |
27,166
|
$ |
22,073
|
$ |
5,093
|
||||||
Cost
of programming
|
65,909
|
47,920
|
17,989
|
|||||||||
Depreciation
of station property, plant and equipment
|
8,768
|
6,080
|
2,688
|
|||||||||
Amortization
of broadcast licenses and other intangibles
|
6,595
|
5,015
|
1,580
|
|||||||||
Total Consolidated Cost of
Revenues
|
$ |
108,438
|
$ |
81,088
|
$ |
27,350
|
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
costs
|
$ |
83,767
|
$ |
71,087
|
$ |
12,680
|
||||||
Cost
of programming
|
215,035
|
149,188
|
65,847
|
|||||||||
Depreciation
of station property, plant and equipment
|
23,347
|
17,841
|
5,506
|
|||||||||
Amortization
of broadcast licenses and other intangibles
|
16,922
|
13,967
|
2,955
|
|||||||||
Total Consolidated Cost of
Revenues
|
$ |
339,071
|
$ |
252,083
|
$ |
86,988
|
For the Three Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
2,691
|
$ |
2,202
|
$ |
489
|
||||||
Czech
Republic
|
5,595
|
5,317
|
278
|
|||||||||
Romania
|
3,224
|
1,806
|
1,418
|
|||||||||
Slovak
Republic
|
2,279
|
2,303
|
(24 | ) | ||||||||
Slovenia
|
1,821
|
1,356
|
465
|
|||||||||
Ukraine
(STUDIO 1+1)
|
1,814
|
3,265
|
(1,451 | ) | ||||||||
Ukraine
(KINO, CITI)
|
185
|
232
|
(47 | ) | ||||||||
Total Consolidated Station
Selling, General and Administrative Expenses
|
$ |
17,609
|
$ |
16,481
|
$ |
1,128
|
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
6,430
|
$ |
4,991
|
$ |
1,439
|
||||||
Czech
Republic
|
15,596
|
15,383
|
213
|
|||||||||
Romania
|
8,568
|
6,616
|
1,952
|
|||||||||
Slovak
Republic
|
6,539
|
5,216
|
1,323
|
|||||||||
Slovenia
|
5,293
|
3,840
|
1,453
|
|||||||||
Ukraine
(STUDIO 1+1)
|
5,698
|
8,619
|
(2,921 | ) | ||||||||
Ukraine
(KINO, CITI)
|
965
|
523
|
442
|
|||||||||
Total Consolidated Station
Selling, General and Administrative Expenses
|
$ |
49,089
|
$ |
45,188
|
$ |
3,901
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ | 18,902 | $ | 7,375 | $ | 11,527 | ||||||
Stock-based
compensation
|
1,494 | 967 | 527 | |||||||||
Total
Corporate Operating Costs
|
$ | 20,396 | $ | 8,342 | $ | 12,054 |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ | 38,515 | $ | 21,634 | $ | 16,881 | ||||||
Stock-based
compensation
|
4,098 | 2,385 | 1,713 | |||||||||
Total
Corporate Operating Costs
|
$ | 42,613 | $ | 24,019 | $ | 18,594 |
·
|
a
charge of US$ 12.5 million in respect of the estimated cost of settlement
of our Croatia litigation (see Item 1, Note
18);
|
·
|
increased
business development expenses incurred in researching potential
acquisition targets, partly offset
by;
|
·
|
decreased
property-related costs, as the expense incurred in the nine months ended
September 30, 2006 included a lease exit charge of approximately US$ 1.6
million (including additional depreciation of US$ 0.3 million) incurred
following the relocation of our London office during the first quarter of
2006; and
|
·
|
decreased
legal costs incurred in connection with legal proceedings in respect of
our Ukraine operations.
|
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
Income
|
$ | 28,393 | $ | 6,571 | $ | 21,822 |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
Income
|
$ | 108,259 | $ | 66,787 | $ | 41,472 |
For
the Three Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Interest
income
|
$ | 1,180 | $ | 1,554 | $ | (374 | ) | |||||
Interest
expense
|
(11,883 | ) | (11,066 | ) | (817 | ) | ||||||
Foreign
currency exchange (loss) / gain, net
|
(23,300 | ) | 6,018 | (29,318 | ) | |||||||
Change
in fair value of derivatives
|
(8,555 | ) | (881 | ) | (7,674 | ) | ||||||
Other
income / (expense)
|
44 | (412 | ) | 456 | ||||||||
Provision
for income taxes
|
(131 | ) | (1,235 | ) | 1,104 | |||||||
Minority
interest in income of consolidated subsidiaries
|
(4,511 | ) | (461 | ) | (4,050 | ) | ||||||
Gain
on sale of unconsolidated affiliate
|
- | 6,179 | (6,179 | ) | ||||||||
Discontinued
operations
|
$ | - | $ | (2,333 | ) | $ | 2,333 |
For
the Nine Months Ended September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Interest
income
|
$ | 4,326 | $ | 4,748 | $ | (422 | ) | |||||
Interest
expense
|
(42,717 | ) | (32,921 | ) | (9,796 | ) | ||||||
Foreign
currency exchange gain loss, net
|
(28,552 | ) | (25,469 | ) | (3,083 | ) | ||||||
Change
in fair value of derivatives
|
3,497 | (2,757 | ) | 6,254 | ||||||||
Other
expense
|
(746 | ) | (793 | ) | 47 | |||||||
Provision
for income taxes
|
(18,609 | ) | (8,811 | ) | (9,798 | ) | ||||||
Minority
interest in income of consolidated subsidiaries
|
(9,881 | ) | (7,178 | ) | (2,703 | ) | ||||||
Equity
in income / (loss) of unconsolidated affiliates
|
- | (730 | ) | 730 | ||||||||
Gain
on sale of unconsolidated affiliate
|
- | 6,179 | (6,179 | ) | ||||||||
Discontinued
operations
|
$ | - | $ | (4,863 | ) | $ | 4,863 |
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Romania
operations
|
$ |
-
|
$ |
7
|
$ | (7 | ) | |||||
Slovak
Republic operations
|
-
|
(737 | ) |
737
|
||||||||
Total Equity in Income / (Loss)
of Unconsolidated Affiliates
|
$ |
-
|
$ | (730 | ) | $ |
730
|
Movement
|
||||||||||||
Current
assets
|
$ |
489,398
|
$ |
413,616
|
$ |
75,782
|
||||||
Non-current
assets
|
1,678,139
|
1,405,384
|
272,755
|
|||||||||
Current
liabilities
|
245,643
|
182,961
|
62,682
|
|||||||||
Non-current
liabilities
|
659,083
|
574,084
|
84,999
|
|||||||||
Minority
interests in consolidated subsidiaries
|
15,780
|
26,189
|
(10,409 | ) | ||||||||
Shareholders’
equity
|
$ |
1,247,031
|
$ |
1,035,766
|
211,265
|
For the Nine Months Ended
September 30, (US$ 000's)
|
||||||||
2007
|
2006
|
|||||||
Net
cash generated from continuing operating activities
|
$ |
95,889
|
$ |
67,907
|
||||
Net
cash used in continuing investing activities
|
(188,463 | ) | (100,818 | ) | ||||
Net
cash received from financing activities
|
136,446
|
132,227
|
||||||
Net
cash used in discontinued operations – operating
activities
|
(2,164 | ) | (1,690 | ) | ||||
Net increase in cash and cash
equivalents
|
$ |
46,665
|
$ |
92,844
|
·
|
Payment
of SKK 1.9 billion (approximately US$ 78.5 million) in connection with our
acquisition of the final 20% stake in our Slovak Republic operations (for
further information, see Part I, Item 1, Note
3);
|
·
|
Payment
of US$ 51.6 million in connection with our acquisition of an additional 5%
stake in our Romania broadcasting operations and a 20% stake in our
Romanian production company (for further information, see Part I, Item 1,
Note 3);
|
·
|
Payments
of EUR 6.7 million (approximately US$ 8.4 million) in connection with our
acquisition of Sport.ro (for further information, see Part I, Item 1, Note
3);
|
·
|
Payments
of US$ 3.1 million in connection with our acquisition of a 60.4% stake in
each of Tor and Zhysa (for further information, see Part I, Item 1, Note
3); and
|
Operating segment (US$
000’s)
|
||||||||
Croatia
|
$ |
95,373
|
$ |
67,623
|
||||
Czech
Republic
|
420,814
|
434,897
|
||||||
Romania
|
52,613
|
25,620
|
||||||
Slovak
Republic
|
10,186
|
23,670
|
||||||
Slovenia
|
-
|
-
|
||||||
Ukraine
(STUDIO 1+1)
|
930
|
-
|
||||||
Ukraine
(KINO, CITI)
|
14,505
|
4,621
|
||||||
Total
|
$ |
594,421
|
$ |
556,431
|
Contractual
Obligations
|
Payments due by period (US$
000’s)
|
|||||||||||||||||||
Total
|
Less than 1
year
|
1-3
years
|
3-5
years
|
More than 5
years
|
||||||||||||||||
Long-Term
Debt – principal
|
$ |
574,584
|
$ |
12,839
|
$ |
1,700
|
$ |
-
|
$ |
560,045
|
||||||||||
Long-Term
Debt – interest
|
229,995
|
41,080
|
82,280
|
81,974
|
24,661
|
|||||||||||||||
Capital
Lease Obligations
|
6,838
|
860
|
1,591
|
1,420
|
2,967
|
|||||||||||||||
Operating
Leases
|
5,160
|
1,876
|
2,368
|
916
|
-
|
|||||||||||||||
Unconditional
Purchase Obligations
|
132,794
|
115,735
|
9,254
|
5,632
|
2,173
|
|||||||||||||||
Other
Long-Term Obligations
|
6,867
|
5,367
|
1,500
|
-
|
-
|
|||||||||||||||
Total Contractual
Obligations
|
$ |
956,238
|
$ |
177,757
|
$ |
98,693
|
$ |
89,942
|
$ |
589,846
|
(US$
000’s)
|
||||||
Corporate
|
(1)–(2)
|
$ |
560,045
|
|||
Croatia
operations
|
(3)
|
|
-
|
|||
Czech
Republic operations
|
(4)–(6)
|
|
12,839
|
|||
Romania
operations
|
(7)
|
-
|
||||
Slovenia
operations
|
(8)
|
-
|
||||
Ukraine
(KINO, CITI) operations
|
(9)
|
1,700
|
||||
Total
|
$ |
574,584
|
(1)
|
In
May 2005, we issued senior notes in the aggregate principal amount of EUR
370.0 million (approximately US$ 524.6 million) consisting of
EUR 245.0 million (approximately US$ 347.4 million) of Fixed
Rate Notes, which bears interest at 8.25% and EUR 125.0 million
(approximately US$ 177.2 million) of 2012 Floating Rate Notes,
which bore interest at six-month Euro Inter-Bank Offered Rate (“EURIBOR”)
plus 5.50%. On May 15, 2007, we redeemed the 2012 Floating Rate
Notes.
|
(2)
|
On
July 21, 2006, we entered into a five-year revolving loan agreement for
EUR 100.0 million (approximately US$ 141.8 million) arranged by EBRD and
on August 22, 2007, we entered into a second revolving loan agreement for
EUR 50.0 million (approximately US$ 70.9 million) also arranged by EBRD.
ING and CS are participating in the facility for EUR 75.0 million in
aggregate.
|
(3)
|
On
March 28, 2007, we repaid EUR 0.6 million (approximately US$ 0.9 million),
which was the total amount outstanding to our Croatia operations under two
loan agreements with Hypo Alpe-Adria Bank d.d. Following this repayment,
the security held by the bank was
released.
|
(4)
|
CET
21 has a four-year credit facility of CZK 1.2 billion (approximately US$
61.6 million) with CS. The final repayment date is October 31,
2009. This facility may, at the option of CET 21, be drawn in
CZK, US$ or EUR and bears interest at the three-month, six-month or
twelve-month LIBOR, EURIBOR or PRIBOR rate plus 1.95%. This
facility is secured by a pledge of receivables, which are also subject to
a factoring arrangement with Factoring Ceska Sporitelna, a.s., a
subsidiary of CS. As at September 30, 2007, there were no
drawings under this facility; however on July 10, 2007, CZK 860.0 million
(approximately US$ 44.2 million) was drawn down under this facility, of
which CZK 260.0 million (approximately US$ 13.4 million) was repaid on
July 31, 2007, and CZK 600.0 million (approximately US$ 30.8 million) was
repaid on September 14, 2007.
|
(5)
|
CET
21 has a working capital credit facility of CZK 250.0 million
(approximately US$ 12.8 million) with CS. This working capital
facility bears interest at the three-month PRIBOR rate plus 1.65% and is
secured by a pledge of receivables, which are also subject to a factoring
arrangement with Factoring Ceska Sporitelna, a.s. On September 30, 2007,
the full CZK 250.0 million (approximately US$ 12.8 million) was drawn
under this facility bearing interest at an aggregate 4.65% (three-month
PRIBOR effective for this loan was
3.5%).
|
(6)
|
As
at September 30, 2007, there were no drawings under a CZK 300.0 million
(approximately US$ 15.4 million) factoring facility with Factoring Ceska
Sporitelna, a.s. This facility is available until September 30,
2010 and bears interest at the rate of one-month PRIBOR plus 1.40% for the
period that actively assigned accounts receivable are
outstanding.
|
(7)
|
The
interest-free loan provided by one of the founding shareholders of
Sport.ro was repaid on August 31,
2007.
|
(8)
|
On
July 29, 2005, Pro Plus entered into a revolving five-year facility
agreement for up to EUR 37.5 million (approximately US$ 53.2 million) in
aggregate principal amount with ING, Nova Ljubljanska Banka d.d.,
Ljubljana and Bank Austria Creditanstalt d.d., Ljubljana. The
facility availability declines by 10.0% each year for four years
commencing one year after signing, with 60.0% repayable after five
years. This facility is secured by a pledge of the bank
accounts of Pro Plus, the assignment of certain receivables, a pledge of
our interest in Pro Plus and a guarantee of our wholly-owned subsidiary
CME Media Enterprises B.V. Loans drawn under this facility will
bear interest at a rate of EURIBOR for the period of drawing plus a margin
of between 2.1% and 3.6% that varies according to the ratio of
consolidated net debt to consolidated broadcasting cash flow for Pro
Plus. As at September 30, 2007, EUR 30.0 million (approximately
US$ 42.5 million) was available for drawing under this
revolving facility; there were no drawings
outstanding.
|
(9)
|
Our
Ukraine (KINO, CITI) operations have entered into a number of three-year
unsecured loans with Glavred-Media, LLC, the minority shareholder in
Ukrpromtorg. As at September 30, 2007, the total value of loans
drawn was US$ 1.7 million. The loans are repayable between
August 2009 and December 2009 and bear interest at
9.0%.
|
Jurisdiction
|
Year
|
Croatia
|
2003
|
Czech
Republic
|
2002
|
Germany
|
2000
|
Netherlands
|
2004
|
Romania
|
2002
|
Slovak
Republic
|
2001
|
Slovenia
|
2001
|
Ukraine
|
2003
|
United
States
|
2001
|
31.01
|
Sarbanes-Oxley
Certification s. 302 CEO, dated February 22,
2008
|
31.02
|
Sarbanes-Oxley
Certification s. 302 CFO, dated February 22,
2008
|
32.01
|
Sarbanes-Oxley
Certification – CEO and CFO, dated February 22, 2008 (furnished
only)
|
Date: February 22,
2008
|
/s/ Michael
Garin
|
Michael Garin | |
Chief Executive Officer | |
(Duly Authorized Officer) | |
Date:
February 22,2008
|
/s/ Wallace
Macmillan
|
Wallace Macmillan | |
Chief Financial Officer | |
(Principal Financial Officer and Accounting Officer) |
Sarbanes-Oxley
Certification s. 302 CEO, dated February 22,
2008.
|
|
Sarbanes-Oxley
Certification s. 302 CFO, dated February 22,
2008.
|
|
Sarbanes-Oxley
Certification – CEO and CFO, dated February 22, 2008 (furnished
only).
|
This ‘10-Q/A’ Filing | Date | Other Filings | ||
---|---|---|---|---|
4/15/12 | ||||
5/15/11 | ||||
5/14/11 | ||||
9/30/10 | 10-Q | |||
5/15/10 | ||||
5/14/10 | ||||
3/31/10 | 10-Q | |||
11/12/09 | ||||
10/31/09 | ||||
5/15/09 | 4, 4/A, DEF 14A, PRE 14A | |||
5/14/09 | ||||
12/31/08 | 10-K, 8-K | |||
11/15/08 | ||||
5/15/08 | ||||
5/14/08 | ||||
4/30/08 | 10-Q, 8-K | |||
Filed on: | 2/22/08 | 10-Q/A, 8-K | ||
1/1/08 | ||||
11/15/07 | ||||
11/1/07 | 10-Q, 8-K | |||
10/30/07 | ||||
10/17/07 | ||||
10/5/07 | 8-K | |||
For Period End: | 9/30/07 | 10-Q | ||
9/24/07 | ||||
9/14/07 | ||||
9/10/07 | 4 | |||
9/4/07 | ||||
8/31/07 | ||||
8/30/07 | 3, 8-K | |||
8/22/07 | 8-K | |||
7/31/07 | ||||
7/13/07 | 8-K | |||
7/10/07 | ||||
6/30/07 | 10-Q, 10-Q/A | |||
6/21/07 | ||||
6/6/07 | ||||
6/5/07 | 4, DEF 14A, PRE 14A | |||
6/1/07 | 8-K | |||
5/16/07 | 8-K | |||
5/15/07 | 8-K | |||
5/11/07 | 8-K | |||
5/8/07 | ||||
4/2/07 | ||||
3/28/07 | ||||
3/15/07 | 4 | |||
3/1/07 | 10-K, 8-K | |||
2/20/07 | ||||
1/25/07 | ||||
1/1/07 | ||||
12/31/06 | 10-K, 10-K/A | |||
12/18/06 | ||||
12/14/06 | 4 | |||
12/1/06 | ||||
11/21/06 | ||||
11/9/06 | 10-Q, 8-K | |||
11/6/06 | ||||
9/30/06 | 10-Q | |||
8/28/06 | 3, 4 | |||
8/1/06 | 3, 4, 8-K | |||
7/21/06 | 8-K | |||
7/12/06 | ||||
6/30/06 | 10-Q | |||
5/24/06 | ||||
4/27/06 | ||||
1/23/06 | 8-K | |||
1/11/06 | 3, 4, SC 13G, SC 13G/A | |||
12/31/05 | 10-K, 10-K/A | |||
12/23/05 | ||||
7/29/05 | ||||
7/21/05 | ||||
5/5/05 | ||||
4/18/05 | S-3/A | |||
12/15/04 | 4 | |||
10/29/04 | ||||
9/24/04 | ||||
9/9/04 | 4 | |||
9/1/04 | 4 | |||
6/30/04 | 10-Q | |||
4/30/04 | ||||
2/9/04 | ||||
12/31/03 | 10-K, 10-K/A | |||
10/23/03 | 8-K/A | |||
9/19/03 | ||||
6/19/03 | ||||
5/19/03 | ||||
11/20/02 | ||||
9/30/01 | 10-Q | |||
4/10/01 | ||||
2/9/01 | ||||
List all Filings |