Central European Media Enterprises Reports Its Best Ever Full-Year Results

Central European Media Enterprises Reports Its Best Ever Full-Year Results

FULL-YEAR - Net Revenues Increase 39% - Operating Income grows $65.4 Million to $206.0 Million - Segment(1) EBITDA Increases 46%

FOURTH QUARTER - Net Revenues Increase 40% - Operating Income Improves $23.9 Million to $97.8 Million - Segment(1) EBITDA Increases 33%

HAMILTON, Bermuda, Feb. 28 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME" or the "Company") (Nasdaq/Prague Stock Exchange - CETV) today announced financial results for the fourth quarter and full-year ended December 31, 2007 which were the strongest in the Company's history. The Company recorded its highest ever revenues, Segment(1) EBITDA and operating income.

Net revenues for the year ended December 31, 2007 increased 39% to $840.0 million, compared to the year ended December 31, 2006. Operating income increased $65.4 million to $206.0 million. Net income from continuing operations increased $63.3 million to $88.6 million, and fully diluted earnings per share in respect of continuing operations increased $1.50 to $2.12. Segment(1) EBITDA for the year ended December 31, 2007 increased 46% to $319.7 million, compared to the year ended December 31, 2006. Our consolidated results for 2007 include Markiza in the Slovak Republic, which was not consolidated until January 23, 2006.

Net revenues for the fourth quarter of 2007 increased 40% to $301.0 million, compared to the fourth quarter of 2006. Operating income for the quarter increased $23.9 million to $97.8 million. Net income from continuing operations increased $46.8 million to $73.0 million, and fully diluted earnings per share in respect of continuing operations increased by $1.07 to $1.71. Segment(1) EBITDA for the quarter increased 33% to $128.6 million, compared to the fourth quarter of 2006.

Michael Garin, Chief Executive Officer of CME, said: "CME's incredible performance in 2007 made us one of the fastest growing multinational broadcasters in the world. From this impressive base, we plan to more than double revenues within the next five years and for Segment(1) EBITDA to grow even faster - and this is before any acquisitions. With strong growth in our core TV business enhanced by our fast developing new media activities and rapid multi-channel expansion, CME is well positioned to continue to deliver outstanding value to shareholders."

Adrian Sarbu, Chief Operating Officer of CME, added: "Our outstanding 2007 results are a springboard for our future growth in all of our markets. In Ukraine our target is to be the leading broadcaster within three years and to take full advantage of the significant growth potential of our largest market."

Consolidated Results for the Three Months Ended December 31, 2007

Consolidated net revenues for the three months ended December 31, 2007 increased by 40% to $301.0 million from $214.3 million for the three months ended December 31, 2006. Operating income for the quarter was $97.8 million compared to $73.9 million for the three months ended December 31, 2006. Net income for the quarter was $73.0 million compared to $26.2 million for the three months ended December 31, 2006. Fully diluted earnings per share for the three months ended December 31, 2007 increased $1.07 to $1.71.

Headline Consolidated Results for the three months ended December 31, 2007 and 2006 were:

                                CONSOLIDATED RESULTS (Unaudited)                              For the Three Months Ended December 31,                                               (US $000's)                                   2007        2006    $ change     % change   Net revenues                $300,959    $214,290     $86,669          40%   Operating income             $97,784     $73,887     $23,897          32%   Net income from    continuing operations       $72,990     $26,232     $46,758         178%   Net income                   $72,990     $26,232     $46,758         178%   Fully diluted earnings    per share from    continuing operations         $1.71       $0.64       $1.07         167%   Fully diluted earnings    per share                     $1.71       $0.64       $1.07         167%    Consolidated Results for the Year Ended December 31, 2007   

Consolidated net revenues for the year ended December 31, 2007 increased by 39% to $840.0 million from $603.1 million for the year ended December 31, 2006. Operating income for the year was $206.0 million compared to $140.7 million for the year ended December 31, 2006. Net income for the year was $88.6 million compared to $20.4 million for the year ended December 31, 2006. Fully diluted earnings per share increased from $0.50 to $2.12 for the year ended December 31, 2007.

Headline Consolidated Results for the years ended December 31, 2007 and 2006 were:

                                           CONSOLIDATED RESULTS                                       For the Year Ended December 31,                                                (US $000's)                                   2007        2006    $ change     % change   Net revenues                $839,991    $603,115    $236,876          39%   Operating income            $206,044    $140,674     $65,370          46%   Net income from    continuing operations       $88,568     $25,287     $63,281         250%   Net income                   $88,568     $20,424     $68,144         334%   Fully diluted earnings    per share from    continuing operations         $2.12       $0.62       $1.50         242%   Fully diluted earnings    per share                     $2.12       $0.50       $1.62         324%    Segment(1) Results   

We evaluate the performance of our television operations based on Segment(1) Net Revenues and EBITDA (earnings before interest, taxes, depreciation and amortization).

Segment(1) Results for the Three Months Ended December 31, 2007

For the three months ended December 31, 2007, Total Segment(1) Net Revenues increased 40% to $301.0 million from $214.3 million for the three months ended December 31, 2006. Total Segment(1) EBITDA for the three months ended December 31, 2007 increased 33% to $128.6 million from $96.8 million in the three months ended December 31, 2006. Segment(1) EBITDA Margin for the three months ended December 31, 2007 was 43% compared to 45% for the three months ended December 31, 2006.

Our Total Segment(1) Net Revenues, Total Segment(1) EBITDA and Segment(1) EBITDA margin for the three months ended December 31, 2007 and 2006 were:

                                      SEGMENT (1) RESULTS (Unaudited)                                  For the Three Months Ended December 31,                                                 (US $000's)                                   2007        2006    $ change     % change   Segment Net Revenues -    Broadcast Operations       $299,403    $212,980     $86,423          41%   Segment Net Revenues -    Non-Broadcast Operations     $1,556      $1,310        $246          19%   Total Segment Net    Revenues                   $300,959    $214,290     $86,669          40%   Segment EBITDA -    Broadcast Operations       $130,035     $97,093     $32,942          34%   Segment EBITDA - Non-    Broadcast Operations        $(1,481)      $(330)    $(1,151)        349%   Total Segment EBITDA        $128,554     $96,763     $31,791          33%   Segment EBITDA Margin            43%        45%    Segment(1) Results for the Year Ended December 31, 2007   

For the year ended December 31, 2007, Total Segment(1) Net Revenues increased 39% to $840.0 million from $604.9 million for the year ended December 31, 2006. Total Segment(1) EBITDA for the year ended December 31, 2007 increased 46% to $319.7 million from $218.8 million in the year ended December 31, 2006. Segment(1) EBITDA Margin for the year ended December 31, 2007 was 38% compared to 36% for the year ended December 31, 2006.

Our Total Segment(1) Net Revenues, Total Segment(1) EBITDA and Segment(1) EBITDA margin for the year ended December 31, 2007 and 2006 were:

                                        SEGMENT (1) RESULTS (Unaudited)                                        For the Year Ended December 31,                                                  (US $000's)                                   2007        2006    $ change     % change   Segment Net Revenues -    Broadcast Operations       $836,367    $601,885    $234,482          39%   Segment Net Revenues -    Non-Broadcast Operations     $3,624      $2,990        $634          21%   Total Segment Net    Revenues                   $839,991    $604,875    $235,116          39%   Segment EBITDA -    Broadcast Operations       $323,573    $219,128    $104,445          48%   Segment EBITDA - Non-    Broadcast Operations        $(3,878)      $(286)    $(3,592)         Nm%   Total Segment EBITDA        $319,695    $218,842    $100,853          46%   Segment EBITDA Margin            38%         36%   

The Company will host a teleconference to discuss its fourth quarter and 2007 year-end results on Thursday, February 28, 2008 at 11:00 a.m. EST (4:00 p.m. GMT and 5:00 p.m. CET). The teleconference will refer to presentation slides which will be available on CME's website www.cetv-net.com prior to the call.

To access the teleconference, U.S. and international callers may dial +1 973-321-1024 ten minutes prior to the start time. The conference call will be broadcast live via www.cetv-net.com.

A replay of the teleconference will be available for two weeks following the call and may be accessed by dialing +1 (800) 642-1687 for U.S. callers and +1 (706) 645-9291 for International callers, passcode: 34427035. A digital audio replay in mp3 format will also be archived on CME's Web site.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements, including those relating to our business strategies and commitments. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, general market and economic conditions in our markets as well as in the United States and Western Europe; the results of additional investment in Croatia and Ukraine; the expected completion dates and the impact of the buyout our partners in the Studio 1+1 Group in Ukraine; the growth of television advertising spending and the rate of development of advertising in our markets; our ability to make future investments in television broadcast operations; our ability to develop and implement strategies regarding sales and multi-channel distribution; the performance of obligations by third parties with whom we have entered into agreements; the general political, economic and regulatory environments where we operate and application of relevant laws and regulations; the renewals of broadcasting licenses and our ability to obtain additional frequencies and licenses; and our ability to acquire necessary programming and attract audiences. For a more detailed description of these uncertainties and other factors, please see the "Risk Factors" section in CME's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on February 28, 2008.

This press release should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 28, 2008.

We make available, free of charge, on our website at http://www.cetv-net.com/ our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.

CME is a TV broadcasting company operating leading networks in six Central and Eastern European countries with an aggregate population of approximately 90 million people. The company's television stations are located in Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema, Galaxie Sport), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV), Slovakia (Markiza, Galaxie Sport), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International, Kino, Citi). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".

For additional information, please visit www.cetv-net.com.

(1) Segment Data, Segment Net Revenues and Segment EBITDA are all non US- GAAP measures For further details, including a reconciliation to the most directly comparable US-GAAP financial measures, see 'Reconciliation Between Consolidated Statements of Operations and Segment Data (non US-GAAP)' below. We define Segment EBITDA margin as Segment EBITDA expressed as a percentage of Segment Net Revenue.

                  CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.                   CONSOLIDATED STATEMENTS OF OPERATIONS                (US$ 000's, except share and per share data)                                             For the Years Ended December 31,                                             2007          2006         2005    Net revenues                          $839,991      $603,115     $400,978   Operating costs                        117,959        90,060       65,138   Cost of programming                    330,303       227,509      148,837   Station selling, general and    administrative expenses                72,034        65,412       46,382   Depreciation of station property,    plant & equipment                      33,294        25,795       16,367   Amortization of broadcast    licenses and other intangibles         24,984        18,813       11,180   Corporate operating costs    (including the cost of    settling our Croatia    litigation of $12.5 million in    2007 and non-cash stock- based    compensation of $5.7 million,    $3.6  million and $3.1 million in    2007, 2006 and 2005, respectively)     55,373        34,104       25,547   Impairment charge                            -           748       35,331   Operating income                       206,044       140,674       52,196   Interest expense, net                  (49,271)      (37,863)     (25,263)   Foreign currency exchange loss, net    (34,441)      (44,908)      37,968   Change in fair value of derivatives     (3,703)      (12,539)           -   Other income / (expense)                 7,891         3,038       (4,705)   Income before provision for income    taxes, minority interest, equity    in income of unconsolidated    affiliates and discontinued    operations                            126,520        48,402       60,196   Provision for income taxes             (20,795)      (14,962)     (16,691)   Income before minority interest,    equity in income of    unconsolidated affiliates and    discontinued operations               105,725        33,440       43,505   Minority interest in income    of consolidated subsidiaries          (17,157)      (13,602)      (8,908)   Equity in (loss) / income    of unconsolidated affiliates                -          (730)       8,238   Gain on sale of unconsolidated    affiliate                                   -         6,179            -   Net income from continuing    operations                             88,568        25,287       42,835   Net loss from discontinued    operations                                  -        (4,863)        (513)   Net income                             $88,568       $20,424      $42,322     PER SHARE DATA:   Net income/(loss) per share   Continuing operations - Basic            $2.14         $0.63        $1.24   Continuing operations - Diluted           2.12          0.62         1.21   Discontinued operations - Basic              -         (0.12)       (0.01)   Discontinued operations - Diluted            -         (0.12)       (0.01)   Net income - Basic                        2.14          0.51         1.22   Net income - Diluted                     $2.12         $0.50        $1.19    Weighted average common shares used in   computing per share amounts (000s):   Basic                                   41,384        40,027       34,664   Diluted                                 41,833        40,600       35,430                     CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.             CONSOLIDATED STATEMENTS OF OPERATIONS (continued)          (US$ 000's, except share and per share data)(Unaudited)                                        For the Three Months Ended December 31,                                             2007          2006         2005    Net revenues                          $300,959      $214,290     $152,498   Operating costs                         34,192        18,973       20,405   Cost of programming                    115,268        78,321       53,964   Station selling, general and    administrative expenses                22,945        20,224       14,126   Depreciation of station property,    plant & equipment                       9,947         7,954        6,300   Amortization of broadcast licenses    and other intangibles                   8,062         4,846        5,344   Corporate operating costs (including    non-cash stock-based compensation    of $1.6 million, $1.2 million and    $0.7 million in 2007, 2006 and    2005, respectively)                    12,760        10,085        9,439   Operating income                        97,785        73,887       42,920   Interest expense, net                  (10,880)       (9,690)     (10,312)   Foreign currency exchange    (loss) / gain, net                     (5,889)      (19,439)       7,682   Change in fair value of derivatives     (7,200)       (9,782)           -   Other income / (expense)                 8,637         3,831         (176)   Income before provision for    income taxes, minority interest,    equity in income of unconsolidated    affiliates and discontinued    operations                             82,453        38,807       40,114   Provision for income taxes              (2,186)       (6,151)      (8,579)   Income before minority interest,    equity in income of unconsolidated    affiliates and discontinued    operations                             80,267        32,656       31,535   Minority interest in income of    consolidated subsidiaries              (7,276)       (6,424)      (5,264)   Equity in income of unconsolidated    affiliates                                  -             -        3,418   Net income from continuing    operations                             72,991        26,232       29,689   Net income from discontinued    operations                                  -             -        4,863   Net income                             $72,991       $26,232      $34,552     PER SHARE DATA:   Net income per share   Continuing operations - Basic            $1.73         $0.64        $0.78   Continuing operations - Diluted           1.71          0.64         0.77   Discontinued operations - Basic              -             -         0.13   Discontinued operations - Diluted            -             -         0.13   Net income - Basic                        1.73          0.64         0.91   Net income - Diluted                     $1.71         $0.64        $0.90    Weighted average common shares used in   computing per share amounts (000s):   Basic                                   42,297        40,725       37,972   Diluted                                 42,654        41,276       38,554     Segment Data   

We manage our business on a geographic basis, and review the performance of each geographic segment using data that reflects 100% of operating and license company results. Our segments are comprised of Croatia, the Czech Republic, Romania, the Slovak Republic, Slovenia and our two businesses in Ukraine.

We evaluate the performance of our segments based on Segment EBITDA. Segment Net Revenues and Segment EBITDA include the results of certain entities (primarily our operations in the Slovak Republic) that were not consolidated until January 23, 2006.

Segment EBITDA is determined as segment net income/loss, which includes costs for program rights amortization, before interest, taxes, depreciation and amortization of broadcast licenses and other intangible assets. Items that are not allocated to our segments for purposes of evaluating their performance, and therefore are not included in Segment EBITDA, include:

   --  expenses presented as corporate expenses in our consolidated       statements of operations;   --  stock-based compensation charges;   --  foreign currency exchange gains and losses;   --  changes in fair value of derivatives; and   --  certain unusual or infrequent items (e.g., gains and       losses/impairments on assets or investments, gain on sale of       unconsolidated affiliates).    We use Segment EBITDA as a component in determining management bonuses.   

Below is a table showing our Segment EBITDA by operation and a reconciliation of these figures to our consolidated results for the years ended December 31, 2007, 2006 and 2005, and for the three months ended December 31, 2007 and 2006:

        Reconciliation between Consolidated Statements of Operations                       and Segment Data (non-US GAAP)                                    SEGMENT FINANCIAL INFORMATION                                 For the Years Ended December 31,                                          (US $000's)                      Segment Net Revenues (1)         Segment EBITDA                      2007     2006     2005      2007       2006       2005   Country   Croatia    (NOVA TV)      $37,193  $22,310  $22,030  $(13,882)  $(14,413)  $(15,866)   Czech Republic   (2)             279,237  208,387  154,010   156,496    100,488     71,544   Romania (3)     215,402  148,616  103,321    93,075     65,860     43,803   Slovak Republic    (MARKIZA TV)   110,539   73,420   64,266    41,532     20,805     17,240   Slovenia (POP    TV and    KANAL A)        69,647   54,534   48,770    22,767     19,842     19,337   Ukraine    (STUDIO 1+1)   125,323   96,413   72,847    27,000     29,973     21,803   Ukraine    (KINO, CITI)    (4)              2,650    1,195        -    (7,293)    (3,713)         -   Total Segment    Data          $839,991 $604,875 $465,244  $319,695   $218,842   $157,861     Reconciliation to    Consolidated    Statement of    Operations:    Consolidated Net    Revenues / Income    before provision for    income taxes,    minority interest,    equity in income of    unconsolidated    affiliates and    discontinued    operations   $839,991  $603,115 $400,978  $126,520    $48,402    $60,196    Corporate operating    costs (including the    cost of settling    Croatian litigation    of $12.5 million in    2007 and non-cash    stock-based    compensation of $5.7    million, $3.6    million and $3.1    million in 2007,    2006 and 2005,    respectively)       -         -        -    55,373     34,104     25,547    Impairment    charge              -         -        -         -        748     35,331    Unconsolidated    Equity Affiliates    (5)                 -     1,760   64,266         -     (1,292)    17,240   Depreciation of    station assets      -         -        -    33,294     25,795     16,367   Amortization of    broadcast    licenses and    other intangibles   -         -        -    24,984     18,813     11,180   Interest expense,    net                 -         -        -    49,271     37,863     25,263   Foreign currency    exchange loss /    (gain), net         -         -        -    34,441     44,908    (37,968)   Change in fair value    of derivatives      -         -        -     3,703     12,539          -   Other (income) /    expense             -         -        -    (7,891)    (3,038)     4,705   Total Segment    Data         $839,991  $604,875 $465,244  $319,695   $218,842   $157,861    (1) All net revenues are derived from external customers. There are no       inter-segmental revenues.   (2) We acquired TV NOVA in May 2005 and GALAXIE SPORT in September 2005.       We launched NOVA CINEMA in December 2007.   (3) Romanian networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL,       SPORT.RO and MTV.   (4) We acquired our Ukraine (KINO, CITI) operations in January 2006.   (5) Our Slovak Republic operations were accounted for as an equity       affiliate until January 23, 2006.                                     SEGMENT FINANCIAL INFORMATION                              For the Three Months Ended December 31,                                             (US $000's)                       Segment Net Revenues (1)           Segment EBITDA                              2007        2006            2007          2006   Country   Croatia (NOVA TV)      $12,492      $8,565         $(4,083)      $(2,774)   Czech Republic    (2)                    96,034      71,384          57,245        40,916   Romania (3)             79,424      51,679          35,921        26,106   Slovak Republic    (MARKIZA TV)           41,924      28,273          18,520        11,547   Slovenia (POP TV    and KANAL A)           25,338      19,651          10,522         9,155   Ukraine (STUDIO 1+1)    44,965      34,297          12,211        13,799   Ukraine (KINO,    CITI) (4)                 782         441          (1,782)       (1,977)    Total Segment Data    $300,959    $214,290        $128,554       $96,772    Reconciliation to    Consolidated    Statement of    Operations:   Consolidated Net    Revenues / Income    before provision for    income taxes,    minority interest,    equity in income of    unconsolidated    affiliates and    discontinued    operations           $300,959    $214,290         $82,453       $38,807   Corporate operating    costs (including    non-cash stock-based    compensation of $1.6    million and $1.2    million in 2007 and    2006, respectively)         -           -          12,760        10,085   Depreciation of    station assets              -           -           9,947         7,954   Amortization of    broadcast licenses    and other    intangibles                 -           -           8,062         4,846   Interest expense,    net                         -           -          10,880         9,690   Foreign currency    exchange loss, net          -           -           5,889        19,439   Change in fair value    of derivatives              -           -           7,200         9,782   Other income                 -           -          (8,637)       (3,831)   Total Segment Data    $300,959    $214,290        $128,554       $96,772    (1) All net revenues are derived from external customers.  There are no       inter-segmental revenues.   (2) Czech Republic networks are TV NOVA, GALAXIE SPORT and NOVA CINEMA.   (3) Romanian networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL,       SPORT.RO and MTV.   (4) We acquired our Ukraine (KINO, CITI) operations in January 2006.  

First Call Analyst:
FCMN Contact:

Source: Central European Media Enterprises Ltd.

CONTACT: Romana Tomasova, Director of Corporate Communications, Central
European Media Enterprises, +44 20 7430 5357, or romana.tomasova@cme-net.com

Web site: http://www.cetv-net.com/

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Profile: International Entertainment