PRAGUE Oct 30 Lossmaking broadcaster Central
European Media Enterprises (CME) said on
Wednesday it needed more money to stay afloat and was trying to
secure extra financing from its main shareholder, Time Warner
CME, which has been battling a slumping advertising market
in central and eastern Europe, said it no longer expected to
make a core profit this year, blaming a weaker outlook in its
Czech and Slovak markets.
There was no certainty that the preliminary discussions with
Time Warner on a possible capital transaction, including debt,
would come to anything, CME said in its third-quarter earnings
statement. It forecast negative free cash flow of $140 million
for full-year 2013.
"If we are unable to secure additional financing, we will be
unable to meet our debt service obligations and generally fund
our operations sometime within the next twelve months," CME
"Due to the level of negative free cash flow anticipated for
2013, we will need additional capital and we are currently
evaluating all options available to us, including debt and
equity financings, asset sales and the renegotiation of payment
obligations with a number of major suppliers," it added.
CME had net debt of $795 million at the end of June.
CME, which operates television stations in six central and
eastern European markets, cut its forecast for full-year 2013
revenue to between $640-$650 million and also said it expected a
loss of between $30-40 million on the level of operating income
before depreciation and amortisation (OIBDA).
It previously expected 2013 revenue of $700-$720 million and
positive OIBDA of $50-$70 million.
The broadcaster, founded by billionaire Ronald Lauder in
1994, reported revenue of $135.8 million in the third quarter,
versus $130.1 million seen in a Reuters poll, and an OIBDA loss
of $32.4 million, wider than an $8.8 million loss expected.
CME already cut its outlook following the second quarter
after TV advertisers balked at higher prices, especially in its
largest market, the Czech Republic.