UPDATE 2-Russia CTC Q1 net dives 44 pct, shares rise

* Net profit down 44 pct to $23 mln

* Revenues down 23 pct to $105 mln

* Ad market deteriorated, full-year outlook cautious

* Shares rise 18 pct on better-than-expected results

(Adds share price move, comments, background)

MOSCOW, May 7 (Reuters) - Russian broadcaster CTC Media (CTCM.O) said on Thursday it was keeping a cautious outlook for the rest of the year, as the company's shares rose on news its first-quarter net profit fell a less-than-expected 44 percent.

Net profit was $23.3 million, while revenues dropped 23 percent to $105 million, as the global financial crisis cut into the advertising budgets of CTC's clients, CTC said.

Revenues "reflected the deterioration of advertising markets, as well as the substantial weakening of our operating currencies against the U.S. dollar reporting currency," Chief Executive Anton Kudryashov said in a statement.

The results, calculated to U.S. Generally Accepted Accounting Principles (GAAP), said the devaluation of the rouble against the dollar had cut 29 percent off of the company's rouble-denominated advertising sales.

"We remain cautious in our outlook, given the adverse market conditions, but we are well-positioned to continue to outperform the Russian television advertising market in 2009," CTC said.

Kudryashov said during a conference call the company saw some softness in demand in April that "may continue into the second quarter". He warned against "extrapolating" first-quarter results to the rest of the year.

CTC Media shares had spiked more than 18 percent by 1415 GMT, analysts praising its strong performance as opposed to prevailing market conditions. They said the results exceeded market expectations.

"We believe that the next quarter could be better for the TV ads market as the Russian economy is undergoing a reality check and we may see the first indications of a stabilisation," Uralsib bank analysts wrote in a note.

The results showed the company's flagship CTC channel maintained its target audience share and its position as the fourth most-watched free-to-air channel in Russia.

CTC operating income before depreciation and amortisation (OIBDA) fell to $39.2 million from $55.2 million, with an OIBDA margin of 37.4 percent, against 40.4 percent a year ago.

Total operating expenses fell 19 percent in dollar terms. Chief Financial Officer Boris Podolsky said the company aimed to reducing costs further.