CTC Media Reports Third Quarter 2007 Financial Results

CTC Media Reports Third Quarter 2007 Financial Results

- Consolidated Revenue Increases 33% to $94.1 Million -

- OIBDA Increases 68% to $32.0 Million -

- Net Income Increases 106% to $17.4 Million-

- $0.11 Earnings Per Share -

MOSCOW, Oct. 29 /PRNewswire-FirstCall/ -- CTC Media, Inc. (NASDAQ:CTCM) , a leading television broadcaster in Russia, today reported financial results for the three- and nine-month periods ended September 30, 2007.

   US$ 000's, except per share data                            Three months ended       Nine months ended                               September 30,            September 30,                               2006     2007  Change   2006      2007  Change    Total operating revenues  $70,919  $94,084   33%  $252,901  $310,352  23%   Total operating expenses  (57,223) (69,674)  22%  (156,928) (202,132) 29%    OIBDA (1)                  19,022   31,960   68%   110,220   127,670  16%    Net income                 $8,443  $17,399  106%   $65,210   $76,214  17%   Earnings per share          $0.05    $0.11  120%     $0.43     $0.48  12%    Financial Highlights    -- Strong quarterly and nine-month results across all key financial      metrics   -- Consolidated revenue increased 33% to $94.1 million in the third      quarter and 23% to $310.4 million in the first nine months of 2007   -- OIBDA increased 68% to $32.0 million and 16% to $127.7 million in the      three- and nine-month periods ended September 30, 2007   -- Net income increased 106% to $17.4 million in the third quarter and 17%      to $76.2 million in the first nine months of 2007   -- $0.11 and $0.48 fully diluted earnings per share for the three- and      nine- month periods ended September 30, 2007    Corporate Highlights    -- CTC Media combined audience share was 10.6% in the third quarter of      2007 compared to 11.6% in the third quarter of 2006   -- CTC Network audience share was 8.7% in the third quarter of 2007      compared to 10.1% in the third quarter of 2006   -- Domashny Network audience share was 1.9% in the third quarter of 2007      compared to 1.5% in the third quarter of 2006   -- Acquired a new station in Stavropol for Domashny Television Station      Group   -- Entered into a definitive agreement to acquire a majority financial      interest in Channel 31 group, one of the leading broadcasters in      Kazakhstan   -- Set up a television company in Uzbekistan, which is expected to      commence broadcasting in 2008    (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.   

Alexander Rodnyansky, Chief Executive Officer, stated, "Our third quarter results continue to reflect the strength of the Russian television advertising market, our dedication to delivering premium audiences to advertisers and the quality of our CTC and Domashny brands. Considerable year-on-year growth in OIBDA and all other profitability metrics underscores the efficiency of our business model and management's focus on financial results."

"We enjoyed a solid start to the fall programming season in an increasingly competitive landscape, with the new season of our Cadets weekday prime-time series, Daddy's Girls sitcom and School #1 drama series among the leading premiers on our flagship CTC Network. We look forward to continue rolling out more premier shows and series as we progress into the fourth quarter."

"As we look forward to 2008, we expect to continue to capitalize on the healthy growth of the Russian TV advertising market, among the highest in Europe, the strength of our CTC and Domashny brands and the resilience of our business model that allows us to deliver OIBDA profitability among the highest in the industry."

"We also look forward to expanding our operations in Kazakhstan and Uzbekistan. In the third quarter, we laid the groundwork for this expansion, having secured the agreement to acquire a majority economic interest in Channel 31 in Kazakhstan and having set up a television company in Uzbekistan. We believe our expansion into these new markets, combined with continued growth in our core Russian market and our prudent approach to programming and cost management will result in continued value creation for our shareholders over the long term."

Results for the Three Months Ended September 30, 2007

The third quarter is historically a low period in the broadcasting industry as a result of seasonality trends in viewing. While our direct operating costs are relatively evenly distributed throughout the year, selling, general and administrative costs in the third quarter include a significant portion of advertising and promotional expenses related to the launch of the new fall television season. As a result of these industry-wide trends, CTC Media's revenues and profit margins are historically lowest in the third quarter.

CTC Media's total operating revenue for the three months ended September 30, 2007, increased 33% to $94.1 million from $70.9 million for the three months ended September 30, 2006. The revenue growth primarily reflects the continued expansion of the Russian television advertising market, increased advertising rates and appreciation of the ruble against the dollar, offset by a decrease in CTC Network audience share. Because we record our advertising revenues net of commissions, revenues were also favorably impacted by the lower commission rate paid by our owned-and-operated stations to Video International pursuant to the variable commission rate negotiated through 2007.

The CTC Network's audience share was 8.7% for the third quarter of 2007, lower than the company's expectations and down from 10.1% in the third quarter of 2006. CTC remains the fourth most watched broadcaster in Russia overall. Domashny's audience share grew from 1.5% for the three months ended September 30, 2006, to 1.9% for the three months ended September 30, 2007. As a result, CTC Media's combined audience share was 10.6% in the third quarter of 2007 as compared to 11.6% in the third quarter of 2006.

Consolidated total operating expenses in the third quarter of 2007 amounted to $69.7 million compared to $57.2 million in the third quarter of 2006, an increase of 22%. Total operating expenses grew more slowly than revenue, primarily reflecting sound cost control, including over programming rights, our largest and most important cost item. Amortization of programming and sublicensing rights increased 22%, and decreased as a percentage of revenue, from 44% in the third quarter of 2006, to 40%, primarily due to our cost- efficient approach to weekend programming in July-August. Third quarter costs included $3.5 million in stock-based compensation compared to $3.0 million in the third quarter of 2006, and $7.6 million in amortization and depreciation expense (an increase of $2.3 million over the third quarter of 2006 primarily due to acquisition of new television stations).

OIBDA increased 68% to $32.0 million for the third quarter of 2007 compared to $19.0 million in the third quarter of 2006. The OIBDA margin improved from 26.8% to 34.0% during this period.

Operating income for the quarter was $24.4 million compared to $13.7 million for the three months ended September 30, 2006, an increase of 78%. Operating income as a percentage of total operating revenue grew from 19.3% in the third quarter of 2006 to 25.9% in the third quarter of 2007.

Net income for the quarter was $17.4 million compared to $8.4 million for the three months ended September 30, 2006. Fully diluted income per share was $0.11 for the three months ended September 30, 2007, compared to $0.05 for the three months ended September 30, 2006.

Results for the Nine Months Ended September 30, 2007

CTC Media's total operating revenue for the nine months ended September 30, 2007, increased by 23% to $310.4 million from $252.9 million for the nine months ended September 30, 2006.

Consolidated total operating expenses for the first nine months of 2007 increased by 29% to $202.1 million compared to $156.9 million for the first nine months of 2006. The increase in total operating expenses in absolute terms was primarily due to increases in amortization of programming and sublicensing rights, and increases in selling, general and administrative costs that included $9.6 million in stock-based compensation expense and increased promotional costs. Total operating expenses as a percentage of revenues increased from 62.1% for the first nine months of 2006 to 65.1% for the first nine months of 2007 mainly due to increases, as a percentage of operating revenues, in amortization of programming and sublicensing rights, selling, general and administrative expenses and depreciation and amortization expense.

OIBDA increased 16% to $127.7 million for the first nine months of 2007 compared to $110.2 million for the first nine months of 2006. OIBDA margin for the nine-month period was 41.1% in 2007 compared to 43.6% for the same period in 2006.

Operating income for the first nine months of 2007 was $108.2 million compared with $96.0 million for the first nine months of 2006, an increase of 13%. Operating income as a percentage of total operating revenue was a strong 34.9% for the first nine months of 2007, although down from 37.9% for the first nine months of 2006.

Net income for the nine months ended September 30, 2007 was $76.2 million compared to $65.2 million for the nine months ended September 30, 2006. Fully diluted income per share was $0.48 for the nine months ended September 30, 2007, compared to $0.43 for the nine months ended September 30, 2006.

Guidance

For the full year ending December 31, 2007, the Company narrows its guidance for consolidated total operating revenue to the range of $460 to $480 million, with a consolidated OIBDA margin in the range of 45-47%.

Conference Call

The Company will also host a conference call to discuss its third quarter 2007 financial results today, Monday, October 29, at 9 a.m. ET, corresponding to 4 p.m. Moscow time, and 1 p.m. London time. To access the conference call, please dial +1 973 582 2741 (International) or 8108 002 531 1012 (Russia) and reference pass code 9333193. A live web cast 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, November 12, 2007, at midnight EST. The replay can be accessed by dialing +1 973 341 3080. The pass code for the replay is 9333193. The web cast 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 350 affiliate stations, including 18 owned-and-operated stations; and the Domashny television network, whose signal is carried by over 220 affiliate stations, including 11 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 quarterly report on Form 10-Q filed with the SEC on July 31, 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.

                          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 nine-month periods to September 30, 2006 and 2007:

                                   Three months ended      Nine months ended                                       September 30,         September 30,                                      2006      2007         2006       2007                                           (in thousands and unaudited)    OIBDA                           $19,022   $31,960     $110,220   $127,670   Depreciation and amortization    (exclusive of amortization of    programming rights and    sublicensing rights)            (5,326)   (7,550)     (14,247)   (19,450)   Operating income                 13,696    24,410       95,973    108,220   Foreign currency gains (losses)     254       113        1,575         25   Interest income                   1,316     2,689        1,641      7,318   Interest expense                      -         -       (1,773)        (2)   Gains on sale of businesses           -         -          782        747   Other non-operating income    (losses), net                      (32)      (31)        (111)       848   Equity in income of investee    companies                          274       304        1,161      1,497   Income before income tax and    minority interest               15,508    27,485       99,248    118,653   Income tax expense               (6,304)   (9,097)     (31,264)   (39,029)   Income attributable to minority    interest                          (761)     (989)      (2,774)    (3,410)   Net income                       $8,443   $17,399      $65,210    $76,214   

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                             $216,200   Depreciation and amortization    (exclusive of amortization of    programming rights and    sublicensing rights)              (27,400)   Operating income                  $188,800                          SEGMENT FINANCIAL INFORMATION                 (in thousands of US dollars and unaudited)                    Three Months Ended September 30, 2006                                    CTC   Domashny Business Elimina-  Consoli-                  CTC   Domashny Station Station  segment  tions     dated                Network Network   Group   Group   results  and other results    Operating    revenue     $49,714  $4,197  $14,850  $2,619  $71,380   $(461)   $70,919   Operating    income/    (loss)       18,205  (2,083)   6,486  (2,502)  20,106  (6,410)    13,696   Total assets 265,622  28,800   67,024  58,414  419,860  30,479    450,339   Capital    expenditures   (235)     21     (256)   (194)    (664)    (18)      (682)   Depreciation    and    amortization   (273)   (138)  (1,318) (3,080)  (4,809)   (517)    (5,326)   Amortization    of program-    ming rights (25,558) (4,021)    (565)     (8) (30,152)     36    (30,116)   Amortization    of sub-    licensing    rights         (997)      -        -       -     (997)      -       (997)                       Three Months Ended September 30, 2007                                    CTC   Domashny Business Elimina-  Consoli-                  CTC   Domashny Station Station  segment  tions     dated                Network Network   Group   Group   results  and other results    Operating    revenue     $64,853  $7,794  $18,868  $3,136  $94,651   $(567)   $94,084   Operating    income/    (loss)       27,565   1,091    5,535  (3,159)  31,032  (6,622)    24,410   Total assets 409,267  34,696   78,440  66,517  588,920  34,940    623,860   Capital    expenditures   (252)     (5)    (464)   (348)  (1,069)   (144)    (1,213)   Depreciation    and    amortization   (241)   (159)  (2,913) (3,713)  (7,026)   (524)    (7,550)   Amortization    of program-    ming rights (30,660) (4,481)  (1,391)    (62) (36,594)     44    (36,550)   Amortization    of sub-    licensing    rights       (1,272)      -        -       -   (1,272)      -     (1,272)                    SEGMENT FINANCIAL INFORMATION (Continued)                 (in thousands of US dollars and unaudited)                     Nine Months Ended September 30, 2006                                     CTC   Domashny Business Elimina-  Consoli-                  CTC   Domashny Station Station  segment  tions     dated                Network Network   Group   Group   results  and other results    Operating    revenue    $187,451  $13,490 $45,254  $7,392  $253,587   $(686) $252,901   Operating    income/    (loss)       97,171   (5,162) 25,103  (7,270)  109,842 (13,869)   95,973   Total assets 265,622   28,800  67,024  58,414   419,860  30,479   450,339   Capital    expenditures   (609)     (37) (1,019) (1,227)   (2,892)    (73)   (2,965)   Depreciation    and    amortization   (816)    (404) (3,605) (7,881)  (12,706) (1,541)  (14,247)   Amortization    of program-    ming rights (73,180) (11,963) (2,053)    (31)  (87,227)    101   (87,126)   Amortization    of sub-    licensing    rights       (3,046)       -       -       -    (3,046)      -    (3,046)                       Nine Months Ended September 30, 2007                                     CTC   Domashny Business Elimina-  Consoli-                  CTC   Domashny Station Station  segment  tions     dated                Network Network   Group   Group   results  and other results    Operating    revenue   $217,099  $25,327 $58,926  $10,541  $311,893 $(1,541) $310,352   Operating    income/    (loss)     105,968    1,599  29,196   (8,209)  128,554 (20,334)  108,220   Total    assets     409,267   34,696  78,440   66,517   588,920  34,940   623,860   Capital    expenditures  (577)    (110) (1,643)  (1,324)   (3,654)   (294)   (3,948)   Depreciation    and    amortization  (748)    (465) (6,217) (10,446)  (17,876) (1,574)  (19,450)   Amortization    of    programming    rights     (88,870) (16,085) (3,694)     (62) (108,711)    159  (108,552)   Amortization    of sub-    licensing    rights      (7,137)       -       -        -    (7,137)      -    (7,137)                         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       Nine months ended                                   September 30,            September 30,                                2006         2007         2006         2007   REVENUES:   Advertising                $69,438      $90,095     $245,901     $296,020   Sublicensing and other    revenues                    1,481        3,989        7,000       14,332   Total operating revenues    70,919       94,084      252,901      310,352   EXPENSES:   Direct operating expenses    (exclusive of    amortization of    programming rights and    sublicensing rights)       (3,919)      (4,703)     (11,585)     (13,601)   Selling, general and    administrative (exclusive    of depreciation and    amortization)             (16,865)     (19,599)     (40,924)     (53,392)   Amortization of programming    rights                    (30,116)     (36,550)     (87,126)    (108,552)   Amortization of    sublicensing rights          (997)      (1,272)      (3,046)      (7,137)   Depreciation and amortization    (exclusive of amortization    of programming rights and    sublicensing rights)       (5,326)      (7,550)     (14,247)     (19,450)   Total operating expenses   (57,223)     (69,674)    (156,928)    (202,132)   OPERATING INCOME            13,696       24,410       95,973      108,220   FOREIGN CURRENCY GAINS    (LOSSES)                      254          113        1,575           25   INTEREST INCOME              1,316        2,689        1,641        7,318   INTEREST EXPENSE                 -            -       (1,773)          (2)   GAINS ON SALE OF BUSINESSES      -            -          782          747   OTHER NON-OPERATING (LOSSES)    INCOME, net                   (32)         (31)        (111)         848   EQUITY IN INCOME OF    INVESTEE COMPANIES            274          304        1,161        1,497     Income before income      tax and minority      interest                 15,508       27,485       99,248      118,653   INCOME TAX EXPENSE          (6,304)      (9,097)     (31,264)     (39,029)   INCOME ATTRIBUTABLE TO    MINORITY INTEREST            (761)        (989)      (2,774)      (3,410)   NET INCOME                  $8,443      $17,399      $65,210      $76,214    Net income attributable    to preferred stockholders       -            -     $(17,116)           -   Net income attributable    to common stockholders     $8,443      $17,399      $48,094      $76,214   Net income per share    attributable to common    stockholders - basic        $0.06        $0.11        $0.45        $0.50   Net income per share    attributable to common    stockholders - diluted      $0.05        $0.11        $0.43        $0.48    Weighted average common    shares outstanding -    basic                 151,505,672  151,811,275  106,549,359  151,637,017   Weighted average common    shares outstanding -    diluted               157,604,899  158,253,151  151,388,942  158,049,941                          CTC MEDIA, INC, AND SUBSIDIARIES         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                        (in thousands of US dollars)                                              Nine months ended September 30,                                                     2006           2007   CASH FLOWS FROM OPERATING ACTIVITIES:   Net income                                     $ 65,210       $ 76,214   Adjustments to reconcile net income to    net cash provided by operating activities:     Deferred tax expense (benefit)                 (6,544)        (8,577)     Depreciation and amortization                  14,247         19,450     Amortization of programming rights             87,126        108,552     Amortization of sublicensing rights             3,046          7,137     Stock based compensation expense                4,119         10,054     Gain on disposal of property and equipment       (327)          (702)     Gains on sale of businesses                      (782)          (747)     Equity in income of unconsolidated investees   (1,161)        (1,497)     Income attributable to minority interest        2,774          3,410     Foreign currency (gains) losses                (1,575)           (25)     Changes in operating assets and liabilities:       Trade accounts receivable                      (279)        (3,914)       Prepayments                                     714           (529)       Other assets                                 (2,244)        (2,401)       Accounts payable and accrued liabilities        660          4,301       Deferred revenue                              5,524          3,340       Other liabilities                              (249)          (107)       Dividends received from equity investees        123          1,769       Acquisition of programming and sublicensing        rights                                     (93,062)      (115,763)            Net cash provided by operating             activities                             77,320         99,965   CASH FLOWS FROM INVESTING ACTIVITIES:       Acquisitions of property and equipment       (2,856)        (3,584)       Acquisitions of intangibles                       -           (364)       Acquisitions of businesses, net of cash        acquired                                   (19,924)       (32,833)       Proceeds from sale of   businesses, net of        cash disposed                                  882            693       Proceeds from sale of property and equipment    683          1,991       Other investing activities                      (97)             2         Net cash used in investing activities     (21,312)       (34,095)   CASH FLOWS FROM FINANCING ACTIVITIES:       Proceeds from issuances of common stock     105,041              -       Common stock issuance costs                    (395)             -       Proceeds from exercise of stock options       5,856          3,368       Proceeds from loans                          19,000              -       Repayments of loans                         (60,384)             -       Decrease (increase) in restricted cash           (3)           (60)       Dividends paid to minority interest          (2,317)        (3,958)         Net cash provided by (used in) financing          activities                                66,798           (650)   EFFECT OF EXCHANGE RATE CHANGES ON CASH AND    CASH EQUIVALENTS                                 1,365          6,737         Net increase (decrease) in cash and          cash equivalents                         124,171         71,957   CASH AND CASH EQUIVALENTS AT BEGINNING OF    PERIOD                                          15,300        176,542   CASH AND CASH EQUIVALENTS AT END OF PERIOD     $139,471       $248,499                         CTC MEDIA, INC, AND SUBSIDIARIES              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS       (in thousands of US dollars, except share and per share data)                                                 December 31,   September 30,                                                      2006           2007   ASSETS    CURRENT ASSETS:     Cash and cash equivalents                     $176,542       $248,499     Trade accounts receivable, net of     allowance for doubtful accounts                  8,640         15,035     Taxes reclaimable                                4,399          9,575     Prepayments                                     38,302         34,977     Programming rights, net                         41,634         53,037     Deferred tax asset                               6,263          7,890     Other current assets                             2,875          1,990       TOTAL CURRENT ASSETS                         278,655        371,003    RESTRICTED CASH                                      120            180   PROPERTY AND EQUIPMENT, net                       22,388         24,952   INTANGIBLE ASSETS, net:     Network affiliation agreements                   3,333          1,833     Trade names                                      5,888          5,950     Broadcasting licenses                           43,387         76,253     Cable network connections                          409            151     Other intangible assets                            354            631     Net intangible assets                           53,371         84,818   GOODWILL                                          70,768         72,845   PROGRAMMING RIGHTS, net                           24,267         37,099   SUBLICENSING RIGHTS, net                           7,611          3,241   INVESTMENTS IN AND ADVANCES TO INVESTEES           9,319          8,794   PREPAYMENTS                                        8,713          9,147   DEFERRED TAX ASSET                                 9,077         10,940   OTHER NON-CURRENT ASSETS                             508            841       TOTAL ASSETS                                $484,797       $623,860                         CTC MEDIA, INC, AND SUBSIDIARIES        UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)       (in thousands of US dollars, except share and per share data)                                                 December 31,   September 30,                                                      2006           2007   LIABILITIES AND STOCKHOLDERS' EQUITY    CURRENT LIABILITIES:     Accounts payable                               $13,353         29,725     Accrued liabilities                              5,508          8,448     Taxes payable                                   11,528         12,186     Deferred revenue                                12,440         18,209     Deferred tax liability                           2,937            971     Other current liabilities                          600             77       TOTAL CURRENT LIABILITIES                     46,366         69,616   LONG TERM LOANS                                      210            220   DEFERRED TAX LIABILITY                            14,080         21,582   MINORITY INTEREST                                  3,124          2,548   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; September 30, 2007 -      151,872,892)                                    1,515          1,519     Additional paid-in capital                     327,587        341,262     Retained earnings                               73,954        150,168     Accumulated other comprehensive income          17,961         36,945       TOTAL STOCKHOLDERS' EQUITY                   421,017        529,894        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $484,797      $ 623,860  

First Call Analyst:
FCMN Contact:

Source: CTC Media, Inc.

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

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

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Profile: International Entertainment