UPDATE 1- Central European Media Enterprises chief quits
* Adrian Sarbu to remain in company till end of year
* Some investors see announcement positive, shares up
PRAGUE Aug 21 (Reuters) - Central European Media Enterprises , which is battling a weakening television advertising market, said its Chief Executive, Adrian Sarbu, has resigned with immediate effect.
The broadcaster, 49.9 percent owned by Time Warner, said a member of its board of directors, Duco Sickinghe, will lead a committee to run day-to-day operations while it searches for a new CEO.
CME, which operates TV stations in central and eastern Europe, raised prices to help it recover ground in a shrinking ad market while emerging European economies suffer from austerity at home and weaker trade abroad.
The move made many advertisers abandon CME's TV stations, which hit profitability in the second quarter.
CME's shares 6.6 percent, outperforming the main PX index which fell by nearly 2 percent.
"The market can consider this positive," Ceska Sporitelna analyst Vaclav Kminek said.
"Some of the steps they have recently made were not very appropriate given the persistently weak market."
The company said it stood by its recent moves.
"The board strongly supports the strategies undertaken by CME during 2013, including important initiatives like the increases in television advertising prices and carriage fees, which are expected to produce the most value from CME's primary businesses, and result in a strong performance from the company," CME said in the release.
In its second quarter results, CME had said advertisers were starting to return and it secured double-digit percentage price increases for TV ads in the Czech Republic in the first half, and single-digit increases in other countries. (Reporting by Jana Mlcochova and Jan Korselt; Editing by Louise Heavens)
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