CME is revising cinemas in Romania and other countries


    PRAGUE: Regional TV web Central European Media Enterprises has announced a $545 million credit agreement with its largest shareholder, Time Warner. The pact, reported by co-CEO Michael Del Nin in a conference call 28 February, means the loss-making company will get relief for its extensive debt obligations.

    The news set off a new record for CME's stock rise on the Prague exchange, a 25% jump to 65.0CZK, the highest since June 2005, Bloomberg reports, quoting a company statement that cash flow from operations will cover operating expenses and interest payments but noting the media web "will need other capital resources this year to fund our operations as well as our debt service and other obligations as they become due.”

    CME representatives said the downsizing process on smaller assets such as cinemas and radio stations in Romania and other countries is about to begin and that progress is expected in coming months. They also disclosed their intent to raise fees for Romanian cable and satellite distributors in 2014 and also for retransmission of its channels. In the Czech Republic a decrease in ad prices is expected.

    Romania was the most profitable CME country in 2013 with 208m USD revenues, a better result than 2012. All in al, CME had earned almost 700m USD in 2013, less than in 2012 when it took in 772m USD. In the Czech market, it earned almost 192m USD last year, significantly less than in 2012, when it took 278m USD.

    In Romania CME controls via Pro TV S.A. the following channels:  PRO TVPRO TV International, Acasă, Acasă Gold, PRO Cinema, Sport.ro and  MTV România.