CTC Media Reports Second Quarter 2007 Financial Results

CTC Media Reports Second Quarter 2007 Financial Results

- Consolidated Revenue Increases 9.1% to $112.1 Million -

- OIBDA(1) of $51.4 Million -

- Net Income of $30.7 Million, $0.19 Earnings Per Share -

MOSCOW, July 30 /PRNewswire-FirstCall/ -- CTC Media, Inc. (NASDAQ:CTCM) , a leading television broadcaster in Russia, today reported financial results for the three- and six-month periods ended June 30, 2007.

    US$ 000's, except per share data                           Three months ended          Six months ended                               June 30,                  June 30,                          2006       2007   Change    2006     2007  Change    Total operating    revenues            $102,758  $112,147   9.1%  $181,981  $216,268  18.8%   Total operating    expenses             (53,549)  (66,853) 24.8%   (99,704) (132,458) 32.9%    OIBDA(1)               54,392    51,422  (5.5)%   91,198    95,710   4.9%    Net income            $34,110   $30,692 (10.0)%  $56,765   $58,815   3.6%   Earnings per share      $0.23     $0.19 (17.4)%    $0.38     $0.37  (2.6)%    (1) OIBDA is defined as operating income before depreciation and       amortization (exclusive of amortization of programming rights and       sublicensing rights). OIBDA is a non-GAAP financial measure. Please       refer to Attachment A for a reconciliation of OIBDA to net income.    Financial Highlights   -- Consolidated revenue increased 9% to $112.1 million in the second      quarter and 19% to $216.3 million in the first six months of 2007   -- OIBDA declined 6% to $51.4 million in the second quarter and increased      5% to $95.7 million in the first six months of 2007   -- Net income declined 10% to $30.7 million in the second quarter and      increased 4% to $58.8 million in the first six months of 2007   -- $0.19 and $0.37 fully diluted earnings per share for the three- and      six-month periods ended June 30, 2007    Corporate Highlights   -- CTC Network audience share was 8.9% in the second quarter of 2007      compared to 9.3% in the first quarter of 2007 and 11.7% in the second      quarter of 2006 (which was an all-time quarterly record for CTC largely      due to the mega-hit series, Born Not Pretty)   -- Domashny Network audience share was 2.0% in the second quarter of 2007      compared to 1.9% in the first quarter of 2007 and significantly higher      than 1.3% in the second quarter of 2006   -- Further strengthened portfolio of owned-and-operated stations by adding      three stations in important new markets: Domashny station in the      strategic city of Vladivostok, and, in July, CTC and Domashny stations      in Irkutsk   -- Acquired the remaining 50% interest in our successful CTC TV Station in      Kazan   

Alexander Rodnyansky, Chief Executive Officer, stated, "The Russian television market remains robust and CTC continues to build upon its brands and unique market position as we target the younger audiences coveted by advertisers. In the second quarter we faced difficult comparisons from the year ago period in which revenue increased 83% and OIBDA improved 106% driven by the conclusion of our mega-hit Born Not Pretty and a surge in spot advertising demand in advance of new advertising regulations which were implemented on July 1, 2006. Nonetheless, in the quarter we grew our top-line and maintained impressive OIBDA and net income margins of 46% and 27%, respectively.

"We continue to build our presence in key local markets in Russia, strengthening Domashny's technical penetration and at the same time expanding our access to the larger local growth markets. Also, we successfully acquired the remaining interest in our CTC station in Kazan, one of our more successful stations, which will allow us to fully consolidate the value of our programming in this important market.

"Audience share results at CTC Network came in lower than our internal expectations. This was partially offset by another strong performance of our Domashny Network which grew audience share to 2.0%, an increase of 54%, from 1.3% in the second quarter of 2006, and generated positive OIBDA for the third consecutive quarter. As we look to the important fall 2007 programming season we remain focused on building upon our audience shares. We have scheduled a record number of premieres for CTC Network, based on successful foreign and Russian formats, and expect the positive momentum at Domashny to continue as we expand our audience reach and improve programming.

"While the third quarter is historically the smallest for ratings and revenue as a result of the summer season, we are optimistic about our innovative programming schedule for the coming fall season, which will feature our highly successful Russian series Cadets, a Sci-Fi drama series Heroes and original Russian shows based on formats such as American Idol and Are You Smarter Than A Fifth Grader?"

Results for the Three Months Ended June 30, 2007

CTC Media's total operating revenue for the three months ended June 30, 2007, increased 9.1% to $112.1 million from $102.8 million for the three months ended June 30, 2006. The revenue growth reflects the continued growth of the Russian television advertising market, which partially offset difficult comparisons from the year ago period in which revenue increased 83% primarily driven by the performance of the Company's flagship CTC Network. Revenues were also favorably impacted by the significantly lower commission rate paid by our owned-and-operated stations to Video International in the second quarter of 2007 in connection with the variable commission rate negotiated through 2007.

CTC Network's audience share was 8.9% for the second quarter of 2007. CTC remains the fourth most watched broadcaster in Russia overall. Domashny's audience share grew from 1.3% for the three months ended June 30, 2006, to 2.0% for the three months ended June 30, 2007. As a result, CTC Media's combined audience share was 10.9% in the second quarter of 2007 as compared to a record 13.0% in the second quarter of 2006.

Consolidated total operating expenses in the second quarter of 2007 increased by 24.8% to $66.9 million, in line with expectations and compared to $53.5 million in the second quarter of 2006. The increase in total operating expenses in absolute terms was primarily driven by an increase in amortization of programming and sublicensing rights expenses, and increases in selling, general and administrative costs, that included $3.5 million of stock-based compensation expense and increased promotional costs.

OIBDA decreased 5.5% to $51.4 million for the second quarter of 2007 compared to $54.4 million, or an increase of 106%, in the second quarter of 2006. The OIBDA margin was a strong 45.9%, although down from 52.9% in the second quarter of 2006.

Operating income for the quarter was $45.3 million compared with $49.2 million for the three months ended June 30, 2006, a 8.0% decrease. Operating income as a percentage of total operating revenue was a strong 40.4% in the second quarter of 2007, although down from 47.9% in the second quarter of 2006.

Net income for the quarter was $30.7 million compared to $34.1 million for the three months ended June 30, 2006. Fully diluted income per share was $0.19 for the three months ended June 30, 2007, compared to $0.23 for the three months ended June 30, 2006.

Results for the Six Months Ended June 30, 2007

CTC Media's total operating revenue for the six months ended June 30, 2007, increased by 18.8% to $216.3 million from $182.0 million for the six months ended June 30, 2006.

Consolidated total operating expenses for the first six months of 2007 increased by 32.9% to $132.5 million compared to $99.7 million for the first six months of 2006.

OIBDA increased 4.9% to $95.7 million for the first six months of 2007 compared to $91.2 million for the first six months of 2006. OIBDA margin for the six-month period was a strong 44.3%, although down from 50.1% in the first six months of 2006.

Operating income for the first six months of 2007 was $83.8 million compared with $82.3 million for the first six months of 2006, an increase of 1.9%. Operating income as a percentage of total operating revenue was a strong 38.8% for the first six months of 2007, although down from 45.2% in the first six months of 2006.

Net income for the six months ended June 30, 2007 was $58.8 million compared to $56.8 million for the six months ended June 30, 2006. Fully diluted income per share was $0.37 for the six months ended June 30, 2007, compared to $0.38 for the six months ended June 30, 2006.

Guidance

For the full year ending December 31, 2007, the Company reconfirms its guidance for consolidated total operating revenue in the range of $460 to $500 million, with a consolidated OIBDA margin in the range of 45-48%.

Conference Call

The Company will also host a conference call to discuss its second quarter 2007 financial results today, Monday, July 30, at 9 a.m. ET, corresponding to 5 p.m. Moscow time. To access the conference call, please dial +1 973 582 2741 (international) or 8108 002 531 1012 (Russia) and reference pass code 8982560. A live webcast of the conference call will also be available on the investor relations portion of the Company's corporate web site, located at www.ctcmedia.ru. A replay of the conference call will be available through Monday, August 13, 2007, at midnight ET. The replay can be accessed by dialing +1 973 341 3080. The pass code for the replay is 8982560. The webcast will also be archived on the Company's web site for two weeks.

About CTC Media, Inc.

Based in Moscow, CTC Media, Inc. was formed in 1989 to pursue commercial media and advertising opportunities in Russia. The Company owns and operates the CTC television network, whose signal is carried by more than 340 affiliate stations, including 18 owned-and-operated stations; and the Domashny television network, whose signal is carried by over 220 affiliate stations, including ten owned and operated stations. The Company is traded on the NASDAQ Global Select Market under the symbol: "CTCM". For more information on CTC Media, please visit: www.ctcmedia.ru.

   Contacts:   CTC Media, Inc.   Dmitry Barsukov, Katya Ostrova (investors)   + 7 495 783 3650   ir@ctcmedia.ru    Konstantin Vorontsov (media)   + 7 495 785 6333    Brainerd Communicators, Inc.   Jenna Focarino (media)   Michael Smargiassi (investors)   +1 212 986 6667   

Certain statements in this press release that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which include, among other things, guidance on our projected total operating revenues and OIBDA margin for the year ending December 31, 2007, expectations regarding the performance of our fall 2007 programming season at both our networks and our ability to execute on our growth strategy, reflect the Company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, risks related to our ability to deliver audience share, particularly in primetime and in the fourth quarter of 2007, further limitations on the amount of advertising time permitted on Russian television from 2008; changes in the size of the Russian television advertising market; free-to-air television remaining a significant advertising forum in Russia; our reliance on a single television advertising sales house for substantially all of our revenues; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's annual report on Form 10-K filed with the SEC on March 1, 2007. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

                    (See attached financial statements)    Attachment A                           SUPPLEMENTAL DISCLOSURES                  REGARDING NON-GAAP FINANCIAL INFORMATION   

OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). The Company believes that this metric is an appropriate and useful measure for evaluating the core current operating performance of its business. This metric is used by management to further its understanding of the Company's operating performance in the ordinary, ongoing and customary course of operations. The Company also believes that it provides investors and equity analysts with a useful basis for analyzing operating performance against historical data and the results of comparable companies.

The most directly comparable GAAP measure to the non-GAAP measure of OIBDA is net income. Unlike net income, OIBDA excludes depreciation and amortization, other than amortization of programming rights and sublicensing rights. The purchase of programming rights is the Company's most significant expenditure that enables it to generate revenues and OIBDA includes the impact of the amortization of these rights. Expenditures for capital items such as property, plant and equipment have a materially less significant impact on the Company's ability to generate revenues. For this reason, the Company excludes the related depreciation expense for these items from OIBDA. Moreover, a significant portion of its intangible assets were acquired in business acquisitions. The amortization of intangible assets is therefore also excluded from OIBDA.

OIBDA also excludes other components of net income that the Company does not consider to be indicators of its core operating performance. Accordingly, it excludes from core operating performance certain items over which it does not have substantial managerial influence and that are not reflective of ordinary, ongoing and customary course activities. Such non-core items include foreign currency gains and losses, interest income and expense, gains on the sale of businesses, other non-operating gains and losses, equity in the income of investee companies that the Company does not control, income tax expense, and income attributable to minority interest shareholders.

Because OIBDA is not a GAAP measurement of financial performance, there are material limitations in its usefulness on a stand-alone basis, including the lack of comparability to the GAAP financial results of other companies. It should be considered in addition to, and not as a substitute for, net income. The items excluded from OIBDA are significant components in assessing our overall financial performance.

The following table presents a reconciliation of the Company's consolidated OIBDA to consolidated net income for the three- and six-month periods to June 30, 2006 and 2007:

                                     Three months ended   Six months ended                                          June 30,             June 30,                                     2006        2007       2006      2007                                         (in thousands and unaudited)    OIBDA                             $54,392   $51,422    $91,198   $95,710   Depreciation and amortization    (exclusive of amortization of    programming rights and    sublicensing rights)              (5,183)   (6,128)    (8,921)  (11,900)   Operating income                   49,209    45,294     82,277    83,810   Foreign currency gains (losses)       242      (115)     1,321       (88)   Interest income                       282     2,545        325     4,629   Interest expense                     (607)       (2)    (1,773)       (2)   Gains on sale of businesses           782       747        782       747   Other non-operating (losses)    income, net                         (289)      858        (80)      879   Equity in income of investee    companies                            723       682        886     1,193   Income before income tax and    minority interest                 50,342    50,009     83,738    91,168   Income tax expense                (14,923)  (17,787)   (24,960)  (29,932)   Income attributable to minority    interest                          (1,309)   (1,530)    (2,013)   (2,421)   Net income                        $34,110   $30,692    $56,765   $58,815   

In this press release, the Company provides guidance on the Company's consolidated OIBDA for the year ending December 31, 2007. The following table presents a reconciliation of the Company's projected OIBDA, based on the mid- point of the provided range, to projected operating income for the year ending December 31, 2007. To further reconcile operating income to net income, foreign currency gains (losses), interest income, interest expense, gains (losses) on the sale of businesses, other non-operating gains (losses), equity in income of investee companies, income tax expense and income attributable to minority interest would need to be added and/or subtracted, as appropriate, from operating income. The Company does not provide a quantitative reconciliation of projected consolidated OIBDA to projected consolidated net income because it believes that such a reconciliation is not available without unreasonable efforts.

                                                 Year ending                                              December 31, 2007                                                 (projected)                                                (in thousands)   OIBDA                                           $223,200   Depreciation and amortization (exclusive of    amortization of programming rights and    sublicensing rights)                            (21,900)   Operating income                                $201,300      Attachment B                        SEGMENT FINANCIAL INFORMATION                 (in thousands of US dollars and unaudited)                       Three Months Ended June 30, 2006                                                             Elimin-                                    CTC   Domashny Business ations  Consol-                   CTC   Domashny Station Station  segment   and    idated                 Network  Network  Group   Group   results  other   results    Operating    revenue      $75,518  $4,983  $19,151  $3,239 $102,891  $(133) $102,758   Operating    income/(loss) 45,008  (1,363)  12,533  (2,001)  54,177 (4,968)   49,209   Total assets  243,774  26,362   70,923  65,884  406,943 16,834   423,777   Capital    expenditures    (169)    (25)    (407)   (410)  (1,011)   (42)   (1,053)   Depreciation    and amorti-    zation          (272)   (138)  (1,288) (2,981)  (4,679)  (504)   (5,183)   Amortization    of programming    rights       (24,701) (4,156)    (763)    (14) (29,634)    34   (29,600)   Amortization    of sublicen-    sing rights   (1,174)      -        -       -   (1,174)     -    (1,174)                        Three Months Ended June 30, 2007                                                             Elimin-                                    CTC   Domashny Business ations  Consol-                   CTC   Domashny Station Station  segment   and    idated                 Network  Network  Group   Group   results  other   results    Operating    revenue      $75,633  $9,001  $23,755  $4,207 $112,596  $(449) $112,147   Operating    income/(loss) 39,000      78   16,044  (2,549)  52,573 (7,279)   45,294   Total assets  363,730  35,047   75,305  60,612  534,694 33,223   567,917   Capital    expenditures    (153)    (81)    (490)   (548)  (1,272)   (11)   (1,283)   Depreciation    and amorti-    zation          (246)   (154)  (1,772) (3,428)  (5,600)  (528)   (6,128)   Amortization    of programming    rights       (30,291) (6,296)  (1,133)      1  (37,719)    70   (37,649)   Amortization    of sublicen-    sing rights   (1,462)      -        -       -   (1,462)     -    (1,462)                         Six Months Ended June 30, 2006                                                              Elimin-                                    CTC   Domashny Business  ations  Consol-                   CTC   Domashny Station Station  segment    and    idated                 Network  Network  Group   Group   results   other   results    Operating    revenue     $137,738  $9,294  $30,404  $4,773 $182,209   $(228) $181,981   Operating    income/(loss) 78,965  (3,077)  18,614  (4,766)  89,736  (7,459)   82,277   Total assets  243,774  26,362   70,923  65,884  406,943  16,834   423,777   Capital    expenditures    (374)    (58)    (763) (1,033)  (2,228)    (55)   (2,283)   Depreciation    and amorti-    zation          (543)   (266)  (2,287) (4,801)  (7,897) (1,024)   (8,921)    Amortization    of programming    rights       (47,622) (7,942)  (1,488)    (22) (57,074)     64   (57,010)   Amortization    of sublicen-    sing rights   (2,049)      -        -       -   (2,049)      -    (2,049)                         Six Months Ended June 30, 2007                                                              Elimin-                                    CTC   Domashny Business  ations  Consol-                   CTC   Domashny Station Station  segment    and    idated                 Network  Network  Group   Group   results   other   results    Operating    revenue     $152,246  $17,533 $40,058  $7,405 $217,242   $(974) $216,268   Operating    income/(loss) 78,403      508  23,661  (5,050)  97,522 (13,712)   83,810   Total assets  363,730   35,047  75,305  60,612  534,694  33,223   567,917   Capital    expenditures    (325)    (105) (1,179)   (976)  (2,585)   (150)   (2,735)   Depreciation    and amorti-    zation          (506)    (305) (3,304) (6,733) (10,848) (1,052)  (11,900)   Amortization    of programming    rights       (58,210) (11,604) (2,303)      -  (72,117)    115   (72,002)   Amortization    of sublicen-    sing rights   (5,865)       -       -       -   (5,865)      -    (5,865)                         CTC MEDIA, INC, AND SUBSIDIARIES           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME       (in thousands of US dollars, except share and per share data)                               Three months ended        Six months ended                                   June 30,                  June 30,                               2006        2007         2006         2007   REVENUES:   Advertising               $99,563     $108,274     $176,462     $205,925   Sublicensing and other    revenues                   3,195        3,873        5,519       10,343       Total operating        revenues             102,758      112,147      181,981      216,268    EXPENSES:   Direct operating expenses    (exclusive of amorti-    zation of programming    rights and sublicensing    rights)                   (3,995)      (4,563)      (7,666)      (8,898)   Selling, general and    administrative (exclusive    of depreciation and    amortization)            (13,597)     (17,051)     (24,058)     (33,793)   Amortization of    programming rights       (29,600)     (37,649)     (57,010)     (72,002)   Amortization of    sublicensing rights       (1,174)      (1,462)      (2,049)      (5,865)   Depreciation and amorti-    zation (exclusive of    amortization of    programming rights    and  sublicensing rights) (5,183)      (6,128)      (8,921)     (11,900)       Total operating        expenses             (53,549)     (66,853)     (99,704)    (132,458)   OPERATING INCOME           49,209       45,294       82,277       83,810   FOREIGN CURRENCY GAINS    (LOSSES)                     242         (115)       1,321          (88)   INTEREST INCOME               282        2,545          325        4,629   INTEREST EXPENSE             (607)          (2)      (1,773)          (2)   GAINS ON SALE OF BUSINESSES   782          747          782          747   OTHER NON-OPERATING (LOSSES)    INCOME, net                 (289)         858          (80)         879   EQUITY IN INCOME OF    INVESTEE COMPANIES           723          682          886        1,193   Income before income tax    and minority interest     50,342       50,009       83,738       91,168   INCOME TAX EXPENSE        (14,923)     (17,787)     (24,960)     (29,932)   INCOME ATTRIBUTABLE TO    MINORITY INTEREST         (1,309)      (1,530)      (2,013)      (2,421)   NET INCOME                $34,110      $30,692      $56,765      $58,815    Net income attributable    to preferred    stockholders            $(11,594)           -     $(22,989)           -   Net income attributable    to common stockholders   $22,516      $30,692      $33,776      $58,815   Net income per share    attributable to common    stockholders - basic       $0.24        $0.20        $0.40        $0.39   Net income per share    attributable to common    stockholders - diluted     $0.23        $0.19        $0.38        $0.37    Weighted average common    shares outstanding    - basic               94,080,899  151,565,124   83,846,170  151,547,155   Weighted average    common shares    outstanding -    diluted              151,411,235  158,333,143  148,194,250  157,939,836                         CTC MEDIA, INC, AND SUBSIDIARIES         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                        (in thousands of US dollars)                                                     Six months ended June 30,                                                      2006          2007    CASH FLOWS FROM OPERATING ACTIVITIES:    Net income                                      $56,765        $58,815    Adjustments to reconcile net income to net     cash provided by operating activities:     Deferred tax expense (benefit)                  (3,629)        (3,980)     Depreciation and amortization                    8,921         11,900     Amortization of programming rights              57,010         72,002     Amortization of sublicensing rights              2,049          5,865     Stock based compensation expense                 1,103          6,536     Gain on disposal of property and equipment        (306)          (748)     Gains on sale of businesses                       (782)          (747)     Equity in income of unconsolidated investees      (886)        (1,193)     Income attributable to minority interest         2,013          2,421     Foreign currency (gains) losses                 (1,321)            88       Changes in operating assets and liabilities:       Trade accounts receivable                     (6,945)        (3,988)       Prepayments                                    2,203            981       Other assets                                    (429)          (215)       Accounts payable and accrued liabilities         532          2,961       Deferred revenue                                 229          3,780       Other liabilities                                670         (3,049)       Dividends received from equity investees         120          1,227       Acquisition of programming and sublicensing        rights                                      (63,960)       (73,549)           Net cash provided by operating            activities                               53,357         79,107   CASH FLOWS FROM INVESTING ACTIVITIES:       Acquisitions of property and equipment        (2,209)        (2,531)       Acquisitions of intangibles                        -           (204)       Acquisitions of businesses, net of cash        acquired                                    (19,543)       (14,572)       Proceeds from sale of   businesses, net        of cash disposed                                882            751       Proceeds from sale of property and        equipment                                       606          1,990       Other investing activities                       (62)             3           Net cash used in investing activities    (20,326)       (14,563)   CASH FLOWS FROM FINANCING ACTIVITIES:       Proceeds from issuances of common stock      105,041              -       Common stock issuance costs                     (331)             -       Proceeds from exercise of stock options        5,856          1,114       Proceeds from loans                           19,000              -       Repayments of loans                          (60,384)             -       Decrease (increase) in restricted cash           (49)           (40)       Dividends paid to minority interest           (1,735)        (2,392)           Net cash provided by (used in)            financing activities                     67,398         (1,318)   EFFECT OF EXCHANGE RATE CHANGES ON CASH AND    CASH EQUIVALENTS                                    905          2,279   Net increase (decrease) in cash and cash    equivalents                                     101,334         65,505   CASH AND CASH EQUIVALENTS AT BEGINNING    OF PERIOD                                        15,300        176,542   CASH AND CASH EQUIVALENTS AT END OF PERIOD      $116,634       $242,047                         CTC MEDIA, INC, AND SUBSIDIARIES              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS       (in thousands of US dollars, except share and per share data)                                                    December 31,    June 30,                                                      2006          2007    ASSETS    CURRENT ASSETS:     Cash and cash equivalents                     $176,542       $242,047     Trade accounts receivable, net of allowance      for doubtful accounts                           8,640         13,397     Taxes reclaimable                                4,399          4,759     Prepayments                                     38,302         27,634     Programming rights, net                         41,634         50,301     Deferred tax asset                               6,263          6,748     Other current assets                             2,875          1,889         TOTAL CURRENT ASSETS                       278,655        346,775    RESTRICTED CASH                                      120            160    PROPERTY AND EQUIPMENT, net                       22,388         22,183   INTANGIBLE ASSETS, net:     Network affiliation agreements                   3,333          2,333     Trade names                                      5,888          5,918     Broadcasting licenses                           43,387         48,715     Cable network connections                          409            136      Other intangible assets                            354            401      Net intangible assets                           53,371         57,503   GOODWILL                                          70,768         71,614   PROGRAMMING RIGHTS, net                           24,267         30,969   SUBLICENSING RIGHTS, net                           7,611          2,729   INVESTMENTS IN AND ADVANCES TO INVESTEES           9,319          9,541   PREPAYMENTS                                        8,713         16,460   DEFERRED TAX ASSET                                 9,077          9,347   OTHER NON-CURRENT ASSETS                             508            638        TOTAL ASSETS                                $484,797       $567,919    LIABILITIES AND STOCKHOLDERS' EQUITY    CURRENT LIABILITIES:     Accounts payable                               $13,353        $20,264     Accrued liabilities                              5,508          7,833     Taxes payable                                   11,528          9,136     Short-term loans and interest accrued                -              -     Deferred revenue                                12,440         17,332     Deferred tax liability                           2,937          1,938     Other current liabilities                          600            162        TOTAL CURRENT LIABILITIES                     46,366         56,665   LONG TERM LOANS                                      210            212    DEFERRED TAX LIABILITY                            14,080         15,074   MINORITY INTEREST                                  3,124          2,223   COMMITMENTS AND CONTINGENCIES   STOCKHOLDERS' EQUITY:     Common stock; $0,01 par value; shares      authorized 175,772,173;shares issued and      outstanding December 31, 2006 - 151,505,672;      June 30, 2007 - 151,700,716)                    1,515          1,517     Additional paid-in capital                     327,587        335,235     Retained earnings                               73,954        132,769     Accumulated other comprehensive income          17,961         24,224       TOTAL STOCKHOLDERS' EQUITY                   421,017        493,745        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $484,797       $567,919  

First Call Analyst:
FCMN Contact:

Source: CTC Media, Inc.

CONTACT: Investors: Dmitry Barsukov, or Katya Ostrova, +7-495-783-3650,
ir@ctcmedia.ru, Media: Konstantin Vorontsov, +7-495-785-6333, all of CTC
Media, Inc.; Media: Jenna Focarino, or Investors: Michael Smargiassi,
+1-212-986-6667, both of Brainerd Communicators, Inc. for CTC Media, Inc.

Web site: http://www.ctcmedia.ru/

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Profile: International Entertainment