Companies@UA: База компаний Украины

Kyiv, July 30 (Interfax-Ukraine) – The net income of Central European Media Enterprises Ltd. (CME), the owner of Ukrainian television channels Studio 1+1 and Kino, in April to June 2009 came to $3.218 million, which is 9.6 times less a year ago.

A quarterly report of the holding says that its negative EBITDA in Ukraine plunged 6.6 times, to $16.086 million, while its operating losses jumped 5.3 times, to $17.053 million.

Since Q1, 2009 CME ahs stopped dividing the indicators of separate television channels and posts them only for countries.

In H1, 2009 the net income of CME's assets in Ukraine scaled down 6.7 times, to UAH 8.119 million, its EBITDA slumped 5.5 times, to minus $28.366 million, and operating losses jumped 4.5 times, to $30.25 million.

In the presentation to the quarterly report, CME links the deterioration in financial indicators with the total fall on the television advertisement market, which could recover in Q4, 2009, as the holding expects.

CME positively assesses the future joining to the group of the TET channel and plans to achieve leading positions for prime-time viewers in 2011. The holding's Ukrainian assets should reach positive EBITDA in 2012, the holding said.

In 2008, the holding built up a 100% stake in 1+1, buying minority stakes from Oleksandr Rodniansky and Borys Fuksman. In February 2009, the holding finalized a deal on the acquisition of a 10% stake in Glavred-Media holding, expanded its stake in the Kino channel to 100% in exchange to a 60.4% stake in its Citi channel and paying additional funds.

As reported, СМЕ had announced that it has reached an agreement with a member of СМЕ's board, the co-owner of the largest bank in Ukraine – PrivatBank – Ihor Kolomoisky on the sale of shares in the 1+1 telecommunications group. Kolomoisky receives 49% of СМЕ's Ukrainian assets, paying $100 million in cash, and 100% of the TET TV channel, which is to be integrated into the 1+1 Group.

The transaction is to be finalized by late Q3, 2009.

The $100 million is to be invested in the development of the 1+1, Kino and TET TV channels. Later, the TET channel is to be developed according to a multi-channel CME strategy aimed at the creation of niche TV channels of the media group.

Kolomoisky also has the right to buy out CME's 51% stake for $300 million in cash.