UPDATE 2-Broadcaster CME Q3 earnings slide; sees bottom

* Revenue drops in line with expectations

* EBITDA fall deeper than expected

* Reiterates drop in ad spending has bottomed out

* Shares drop 4 pct before paring losses

(Updates with conference call, analyst)

PRAGUE, Oct 27 (Reuters) - Central European Media Enterprises' (CME) said revenues fell over 30 percent in the third quarter, although a year-long decline in advertising spend had bottomed out.

The company posted revenue of $134.5 million, in line with forecasts, although earnings before interest, tax, depreciation and amortisation (EBITDA) swung to a deeper than expected loss of $14.4 million. Analysts in a Reuters poll had expected a $10 million EBITDA loss.

Shares fell more than 4 percent before paring losses to close down 0.6 percent at 474 crowns ($27.05) in Prague.

The group, with TV stations in seven central and eastern European markets including the Czech Republic and Romania, provided 2009 guidance for the first time earlier this month.

It expects EBITDA to drop up to 80 percent to between $60 million to $70 million. Revenue should drop around 30 percent to $702 million to $710 million. [ID:nLF644836]

However, it also expects its markets -- crushed by the economic crisis over the past year -- have hit bottom.

"TV ad spending reset 30 percent lower than in 2008. We believe the markets have reached the bottom," CME's chief executive Adrian Sarbu said.

"This is a new starting point. The macroeconomic prospects for 2010 have improved and we expect advertising spending to follow."

The broadcaster's attributable net loss deepened in the quarter to $21.6 million from $19.3 million a year ago.

Sarbu said on a conference call the group was better positioned for 2010 after building market share in its core countries, where ad spending is seen growing 2-6 percent.

But he added 2009 has been the company's toughest year.