CTC MEDIA REPORTS 2006 FOURTH QUARTER AND FULL YEAR RESULTS

27.02.2007
Moscow, Russia—February 27, 2007—CTC Media, Inc. (NASDAQ: CTCM)


FOURTH QUARTER
- Consolidated Revenue Increases 30.6% to $117.9 Million -
- OIBDA* Increases 24.3% to $63.7 Million -
- Net Income of $41.1 Million, $0.26 Earnings Per Share –

FULL YEAR
- Consolidated Revenue Increases 56.2% to $370.8 Million -
- OIBDA* Increases 67.1% to $174.0 Million -
- Net Income of $106.3 Million, $0.69 Earnings Per Share –

US$ 000's, except per share data

Three Months Ended 
December 31,




Year Ended December 31,



 

2005

2006


Change


2005

2006


Change

 
 
 
 
 
 
 
 
 
 

Total operating revenues

$90,329

$117,933

 

30.6%

 

$237,477

$370,834

 

56.2%

Total operating expenses

(42,564)

(59,593)

 

40.0%

 

(147,290)

(216,521)

 

47.0%

 
 
 
 
 
 
 
 
 
 

OIBDA*

51,267

63,744

 

24.3%

 

104,107

173,964

 

67.1%

 
 
 
 
 
 
 
 
 
 

Net income

$32,902

$41,118

 

25.0%

 

$57,295

$106,325

 

85.6%

Fully diluted earnings per share

$0.22

$0.26

 

18.2%

 

$0.37

$0.69

 

86.5%

*OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). OIBDA is a non-GAAP financial measure. Please refer to Attachment A for a reconciliation of OIBDA to net income.

Full-Year Financial Highlights

·Another record year for CTC Media with strong results across all key financial metrics
·Consolidated revenue increased 56.2% to $370.8 million, in-line with guidance
·OIBDA increased 67.1% to $174.0 million
·Record OIBDA margin of 46.9%, at the top end of the guidance range
·Net income increased 85.6% to $106.3 million
·$0.69 fully diluted earnings per share, an increase of 86.5%

·Combined audience share for the CTC and Domashny networks was 11.8% in 2006
·CTC Media succeeded in capturing market share in excess of its audience share, reflecting its success in delivering premium demographics
·Technical penetration of the CTC Network and Domashny Network reached 86.6% and 58.2%, respectively, in 2006, as compared to 84.9% and 47.1%, respectively, in prior year.
·In 2006, CTC Media added three stations to the CTC Television Station Group, and three stations to the Domashny Station Group.

Alexander Rodnyansky, Chief Executive Officer, stated, “In 2006, we achieved substantially all of our operating and financial goals.  We posted significant increases in our revenues and cash flows and maintained our position as one of Russia’s leading commercial broadcasters. As a result of our successful IPO in 2006 and our profitable business model, we have entered 2007 with a strong balance sheet, giving us the financial flexibility to implement our growth strategy.  As we pursue potential acquisitions, we will continue to invest in our content, sales and marketing resources, while carefully managing our costs. We will continue to pursue our successful programming strategy, and plan to launch several exciting premieres in different timeslots in the spring and the fall of 2007. CTC maintains its position as the leading television channel for young audiences, and Domashny continues to build audience share, specifically with female audiences which are highly prized by advertisers. We are pleased with the development of Domashny which became OIBDA profitable in the fourth quarter, less than two years after its launch. Domashny remains on track to achieve profitability on an OIBDA basis for the full-year 2007.  Overall, we believe we are well positioned to continue to outperform the growth in the Russian TV advertising market and increase the overall value of our assets.”

Results for the Three Months Ended December 31, 2006

Overall results reflect the continued growth in revenues of CTC Media’s two channels CTC and Domashny, and management’s cost-conscious approach to programming.

CTC Media’s total operating revenue for the three months ended December 31, 2006 increased 30.6% to $117.9 million fr om $90.3 million for the three months ended December 31, 2005. The revenue growth primarily reflects the continued growth of the Russian television advertising market.

CTC Network’s fourth quarter 2006 audience share was 9% as compared with 11.6% in fourth quarter 2005.  Domashny’s audience share demonstrated healthy growth fr om 1.2% in the fourth quarter of 2005 to 1.5% in the fourth quarter of 2006. As management has previously noted, CTC Network’s fourth quarter 2005 audience share  benefited significantly from the extraordinary success of the “Born Not Pretty” series. 
CTC Media comfortably met its full-year financial and operating targets despite the relative underperformance of a few of its primetime shows during the 2006 fall season.

Consolidated total operating expenses in the fourth quarter of 2006 amounted to $59.6 million compared to $42.6 million in the fourth quarter of 2005. The increase in total operating expenses in absolute terms was primarily driven by an increase in programming amortization expense, which in turn was driven by increased costs of programming, and increases in selling, general and administrative costs that included $3.0 million of stock-based compensation expense.

OIBDA increased 24.3% to $63.7 million for the fourth quarter of 2006 compared to $51.3 million in the fourth quarter of 2005. The OIBDA margin for the quarter was 54%, reflecting sound cost management.  For comparison, CTC Media’s OIBDA margin in the fourth quarter of 2005 was 56.8% which was favorably impacted by the high-margin hit “Born Not Pretty”.

Net income for the quarter was $41.1 million compared to $32.9 million for the three months ended December 31, 2005. Fully diluted income per share was $0.26 for the three months ended December 31, 2006, compared to $0.22 for the three months ended December 31, 2005.

 Results for the Year Ended December 31, 2006

2006 was a record year for CTC Media as it posted new records for key financial and operating metrics.

CTC Media’s total operating revenue for the year ended December 31, 2006 increased by 56.2% to $370.8 million from $237.5 million for the year ended December 31, 2005.

In 2006, CTC Media continued to expand its share of Russia’s fast-growing TV advertising market, capturing approximately 15.6% of the advertising market as compared with 13.6% in 2005. The Russian TV advertising market itself continued to demonstrate robust growth rates increasing 36% to $3.2 billion in 2006, despite the regulatory reduction of advertising time, effected in the middle of the year.

CTC and Domashny achieved greater audience recognition through improved programming, and, particularly in the case of Domashny, increased distribution. CTC’s hit series, including “Born Not Pretty”, “Cadets”, “My Beautiful Nanny”, and “Who’s the Boss” contributed to CTC’s success with its viewers, and to audience share for 2006 as a whole.  In 2006, overall audience share for the CTC Network was 10.4%, up from last year’s 10.3%, and Domashny’s overall audience share was 1.4%, up from 1.0% in 2005.

Consolidated total operating expenses for 2006 increased by 47.0% to $216.5 million compared to $147.3 million for 2005. Total operating expenses as a percentage of revenues decreased from 62.0% for 2005 to 58.4% for 2006. Importantly, $7.2 million of stock-based compensation expense is included in the 2006 operating expenses, wh ereas in 2005, CTC Media expensed $0.6 million as stock-based compensation.

The decline in operating expenses as a percent of revenue reflects CTC Media’s ability to control its direct operating and selling, general and administrative costs and, importantly, programming costs. The year-on-year increase in amortization of programming rights in 2006 was 53%, in-line with the increases in revenues, while the increase from 2004 to 2005 was 71%.

OIBDA increased 67.1% to $174.0 million for 2006 compared to $104.1 million for 2005. OIBDA margin increased from 43.8% in 2005 to 46.9% in 2006. The performance of the Domashny Network and stations contributed to the overall increase in consolidated 2006 OIBDA.

Net income for the year ended December 31, 2006 was $106.3 million compared to $57.3 million for 2005. Fully diluted income per share was $0.69 for 2006, compared to $0.37 for 2005.

All figures for the three-month periods ended December 31, 2005 and 2006 and the full year ended December 31, 2006 included in the press-release are unaudited.

Guidance

For the full year ending December 31, 2007, the Company currently expects to generate consolidated total operating revenue in the range of $460 to $500 million, with a consolidated OIBDA margin in the range of 45-48%. 

Conference Call

The Company will host a conference call to discuss its fourth quarter and full year 2006 financial results today, Tuesday, February 27, at 9 a.m. ET, corresponding to 5 p.m. Moscow time. To access the conference call, please dial +1 973 582 2854 (International) or 8108 002 531 1012 (Russia) and reference pass code 8391897. A live webcast of the conference call will also be available on the investor relations portion of the Company's corporate web site, located at www.ctcmedia.ru. A replay of the conference call will be available through Tuesday, March 13, 2007, at midnight ET. The replay can be accessed by dialing +1 973 341 3080. The pass code for the replay is 8391897. The webcast will also be archived on the Company’s web site for two weeks.

About CTC Media, Inc.

Based in Moscow, CTC Media, Inc. was formed in 1989 to pursue commercial media and advertising opportunities in Russia. The Company owns and operates the CTC television network, whose signal is carried by more than 330 affiliate stations, including 17 owned-and-operated stations; and the Domashny television, whose signal is carried by over 210 affiliate stations, including eight owned-and-operated stations. The Company is traded on The Nasdaq National Market under the symbol: CTCM. For more information on CTC Media, please visit: www.ctcmedia.ru.

# # #

Contacts:

CTC Media, Inc.
Dmitry Barsukov
+ 7 495 783 3650

Brainerd Communicators, Inc.
Jenna Focarino (media)
Michael Smargiassi or Todd St.Onge (investors)
+1 212 986 6667

Certain statements in this press release that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements, which include, among other things, guidance on OIBDA for the Domashny Network and stations for the year ending December 31, 2007 and our ability to execute on our growth strategy, reflect the Company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, risks related to changes in Russian advertising laws, that will further reduce the amount of advertising time; changes in the size of the Russian television advertising market; our ability to deliver audience share, particularly in primetime, to our advertisers; free-to-air television remaining a significant advertising forum in Russia; our reliance on a single television advertising sales house for substantially all of our revenues; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's final prospectus dated May 31, 2006 and filed with the SEC on June 1, 2006. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur.  You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

(See attached financial statements) 

Attachment A

SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL INFORMATION

OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). The Company believes that this metric is an appropriate and useful measure for evaluating the core current operating performance of its business. This metric is used by management to further its understanding of the Company’s operating performance in the ordinary, ongoing and customary course of operations. The Company also believes that it provides investors and equity analysts with a useful basis for analyzing operating performance against historical data and the results of comparable companies.

The most directly comparable GAAP measure to the non-GAAP measure of OIBDA is net income. Unlike net income, OIBDA excludes depreciation and amortization, other than amortization of programming rights and sublicensing rights. The purchase of programming rights is the Company’s most significant expenditure that enables it to generate revenues and OIBDA includes the impact of the amortization of these rights. Expenditures for capital items such as property, plant and equipment have a materially less significant impact on the Company’s ability to generate revenues. For this reason, the Company excludes the related depreciation expense for these items from OIBDA. Moreover, a significant portion of its intangible assets were acquired in business acquisitions. The amortization of intangible assets is therefore also excluded from OIBDA.

OIBDA also excludes other components of net income that the Company does not consider to be indicators of its core operating performance. Accordingly, it excludes from core operating performance certain items over which it does not have substantial managerial influence and that are not reflective of ordinary, ongoing and customary course activities. Such non-core items include foreign currency gains and losses, interest income and expense, gains on the sale of businesses, other non-operating gains and losses, equity in the income of investee companies that the Company does not control, income tax expense, and income attributable to minority interest shareholders.

Because OIBDA is not a GAAP measurement of financial performance, there are material lim itations in its usefulness on a stand-alone basis, including the lack of comparability to the GAAP financial results of other companies. It should be considered in addition to, and not as a substitute for, net income. The items excluded from OIBDA are significant components in assessing our overall financial performance.

The following table presents a reconciliation of the Company's consolidated OIBDA to consolidated net income for the three- and twelve-month periods to December 31, 2005 and 2006:


Three months ended 
December 31,

Year ended December 31,


2005

(unaudited) 

2006

(unaudited) 

2005

audited 

2006

unaudited 


(in thousands and unaudited)

 
 
 
 
 

OIBDA

$ 51,267

$ 63,744

$ 104,107

$ 173,964

Depreciation and amortization (exclusive
of amortization of programming rights and sublicensing rights)

(3,502)

(5,404)

(13,920)

(19,651)

Operating income

47,765

58,340

90,187

154,313

Foreign currency gains (losses)

(188)

4

(877)

3,479

Interest income

54 

1,838

3,101

325

Interest expense

(1,898)

(1)

(8,525)

(1,774)

Gains on sale of businesses

-

137 

-

919 

Other non-operating income (losses), net 

281 

(86)

206 

(200)

Equity in income of investee companies

179

735

578 

1,896

Income before income tax and minority interest

46,193

60,967

84,670

160,212

Income tax expense

(12,126)

(17,705)

(24,861)

(48,969)

Income attributable to minority interest

(1,165)

(2,144)

(2,514)

(4,918)

Net income

$ 32,902

$ 41,118

$ 57,295

$ 106,325

In this press release, the Company provides guidance on the Company's consolidated OIBDA for the year ending December 31, 2007. The following table presents a reconciliation of the Company's projected OIBDA, based on the mid-point of the provided range, to projected operating income for the year ending December 31, 2007. To further reconcile operating income to net income, foreign currency gains (losses), interest income, interest expense, gains (losses) on the sale of businesses, other non-operating gains (losses), equity in income of investee companies, income tax expense and income attributable to minority interest would need to be added and/or subtracted, as appropriate, from operating income. The Company does not provide a quantitative reconciliation of projected consolidated OIBDA to projected consolidated net income because it believes that such a reconciliation is not available without unreasonable efforts.


Year Ending December 31, 2007 (Projected)

 

(in thousands)

OIBDA

$ 223,200

Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights)

(21,400)

Operating income

$ 201,800

 

Attachment B

CTC MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

(in thousands of US dollars and unaudited)

 

 

Three months ended
December 31,

 

Year ended December 31,

 

2005

(unaudited) 


2006

(unaudited) 

 

2005

(audited) 

 

2006

(unaudited) 

REVENUES:

 
 
 


 


 

Advertising (including revenue from related parties of $1,740 in 2006)

$ 87,214

 

$ 111,433

 

$ 232,410

 

$ 357,334

Sublicensing (including revenue from related parties of $2,463 and $8,241 in 2005 and 2006, respectively) 

2,508 

 

5,989

 

3,088 

 

11,322

Other revenue (including revenue from related parties of $136 and $10 in 2005 and 2006, respectively) 

607 

 

511 

 

1,979

 

2,178

Total operating revenues

$ 90,329

 

$ 117,933

 

$ 237,477

 

$ 370,834

EXPENSES:

 
 
 
 
 
 
 

Direct operating expenses (exclusive of amortization of programming rights and sublicensing rights, shown below, exclusive of depreciation and amortization of $12,377 and $15,108 in 2005 and 2006, respectively and inclusive of stock-based compensation of nil and $64 in 2005 and 2006, respectively)

(3,393)

 

(4,224)

 

(12,747)

 

(15,774)

Selling, general and administrative (exclusive of depreciation and amortization of $1,543 and $4,543 in 2005 and 2006, respectively; inclusive of stock-based compensation of $599 and $7,091 in 2005 and 2006, respectively)

(11,575)

 

(15,338)

 

(41,229)

 

(56,297)

Amortization of programming rights

(22,299)

 

(30,900)

 

(77,351)

 

(118,026)

Amortization of sublicensing rights

(1,795)

 

(3,727)

 

(2,043)

 

(6,773)

Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights)

(3,502)

 

(5,404)

 

(13,920)

 

(19,651)

Total operating expenses

(42,564)

 

(59,593)

 

(147,290)

 

(216,521)

OPERATING INCOME

47,765

 

58,340

 

90,187

 

154,313

FOREIGN CURRENCY GAINS (LOSSES)

(188)

 

4

 

(877)

 

1,579

INTEREST INCOME

54

 

1,838

 

3,101

 

3,479

INTEREST EXPENSE (including interest expense to related parties of $5,157and $1,762 in 2005 and 2006, respectively)

(1,898)

 

(1)

 

(8,525)

 

(1,774)

GAINS ON SALE OF BUSINESSES

-

 

137

 

-

 

919

OTHER NON-OPERATING INCOME (LOSSES), net

281

 

(86)

 

206

 

(200)

EQUITY IN INCOME OF INVESTEE COMPANIES

179

 

735

 

578

 

1,896

Income before income tax and minority interest

46,193

 

60,967

 

84,670

 

160,212

INCOME TAX EXPENSE

(12,126)

 

(17,705)

 

(24,861)

 

(48,969)

INCOME ATTRIBUTABLE TO MINORITY INTEREST

(1,165)

 

(2,144)

 

(2,514)

 

(4,918)

NET INCOME

$ 32,902


$ 41,118

 

$ 57,295

 

$ 106,325

 




 


 


Net income attributable to preferred stockholders

$ (15,687)

 

$ -

 

$ (26,134)

 

$ (20,621)

Net income attributable to common stockholders

$ 17,215

 

$ 41,118

 

$ 31,161

 

$ 85,704

Net income per share attributable to common stockholders - basic

$ 0.24

 

$ 0.27

 

$ 0.39

 

$ 0.73

Net income per share attributable to common stockholders - diluted

$ 0.22

 

$ 0.26

 

$ 0.37

 

$ 0.69

 
 
 
 
 
 
 
 

Weighted average common shares outstanding - basic

72,824,800

 

151,505,672

 

79,339,024

 

117,880,814

Weighted average common shares outstanding - diluted

147,964,350

 

157,697,667

 

154,344,956

 

154,077,957

 

CTC MEDIA, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of US dollars)



Year ended
December 31,

2005

2006

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 57,297

$ 106,325

Adjustments to reconcile net income to net cash provided by operating activities:

Deferred tax expense (benefit)

(3,860)

(9,615)

Depreciation and amortization

13,920

19,651

Amortization of programming rights

77,351

118,026

Amortization of sublicensing rights

2,043

6,773

Stock based compensation expense

599

7,155

Gain on disposal of property and equipment

(159)

(174)

Gains on sale of businesses

-

(919)

Equity in income of unconsolidated investees

(578)

(1,896)

Income attributable to minority interest

2,514

4,918

Foreign currency losses (gains)

877

(1,579)

Changes in operating assets and liabilities:

Trade accounts receivable

(2,993)

(1,068)

Prepayments

(5,804)

716

Other assets

(20)

(2,153)

Accounts payable and accrued liabilities

(6,187)

(1,138)

Interest accrual

-

-

Deferred revenue

1,471

2,732

Other liabilities

(28)

1,942

Dividends received from equity investees

644

713

Acquisition of programming and sublicensing rights (including acquisition from related parties of $795 and $1,503 in 2005 and 2006, respectively)

(98,425)

(133,625)

Net cash provided by operating activities

38,660

116,784

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisitions of property and equipment

(5,829)

(3,650)

Acquisitions of intangibles

(274)

(224)

Acquisitions of businesses, net of cash acquired

(7,650)

(21,897)

Proceeds from sale of businesses, net of cash disposed

-

1,482

Proceeds from sale of property and equipment

624

673

Other investing activities

(52)

(12)

Net cash used in investing activities

(13,181)

(23,604)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuances of common stock

-

105,041

Common stock issuance costs

-

(395)

Proceeds from exercise of stock options

157

5,856

Repurchase of stock

(53,954)

-

Proceeds from loans

68,000

19,000

Repayments of loans

(86,912)

(60,384)

Decrease (increase) in restricted cash

35,856

(12)

Dividends paid to minority interest

(2,069)

(3,750)

Net cash provided by (used in) financing activities

(38,922)

65,356

EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS

(934)

2,706

Net increase (decrease) in cash and cash equivalents

(14,377)

161,242

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

29,677

15,300

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$ 15,300

$ 176,542

 

CTC MEDIA, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of US dollars, except share and per share data)

December 31,
2005


June 30,
2006

ASSETS





CURRENT ASSETS:

Cash and cash equivalents

$ 15,300

$ 176,542

Trade accounts receivable, net of allowance for doubtful accounts
(2005 - $287; 2006 - $463)

6,016

8,640

Taxes reclaimable

3,109

4,399

Prepayments

25,886

38,302

Programming rights, net

38,100

41,634

Deferred tax asset

1,310

6,263

Other current assets

790

2,875

TOTAL CURRENT ASSETS

90,511

278,655

RESTRICTED CASH

105

120

PROPERTY AND EQUIPMENT, net

19,405

22,388

INTANGIBLE ASSETS, net:

Network affiliation agreements

5,333

3,333

Trade names

5,834

5,888

Broadcasting licenses

28,896

43,387

Cable network connections

805

409

Other intangible assets

226

354

Net intangible assets

41,094

53,371

GOODWILL

68,273

70,768

PROGRAMMING RIGHTS, net

28,368

24,267

SUBLICENSING RIGHTS, net

1,836

7,611

INVESTMENTS IN AND ADVANCES TO INVESTEES

8,509

9,319

PREPAYMENTS

10,093

8,713

DEFERRED TAX ASSET

5,322

9,077

OTHER NON-CURRENT ASSETS

181

508

TOTAL ASSETS


$ 273,697


$ 484,797






LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:

Accounts payable

$ 16,349

$ 13,353

Accrued liabilities

6,300

5,508

Taxes payable

8,765

11,528

Short-term loans and interest accrued (including loans from related parties (2005 - $4,064; 2006 - nil )

4,068

-

Deferred revenue (including deferred revenue from related parties (2005 - $1,422; 2006 - $54)

8,171

12,440

Deferred tax liability

1,147

2,937

Other current liabilities

19

600

TOTAL CURRENT LIABILITIES

44,819

46,366

LONG TERM LOANS (including loans from related parties 2005 - $37,000; 2006 - nil)

37,188

210

DEFERRED TAX LIABILITY

10,677

14,080

MINORITY INTEREST

1,915

3,124

COMMITMENTS AND CONTINGENCIES (Note 10)

STOCKHOLDERS' EQUITY:

Convertible preferred stock; $0.01 par value; shares authorized 90,000; shares issued and outstanding (December 31, 2005 - 82,951; December 31, 2006 - nil)

1

-

Common stock; $0.01 par value; shares authorized 175,772,173; shares issued and outstanding December 31, 2005 - 72,824,800; December 31, 2006 - 151,505,672)

728

1,515

Additional paid-in capital

210,740

327,587

(Accumulated deficit)/ Retained earnings

(32,371)

73,954

Accumulated other comprehensive income

-

17,961

TOTAL STOCKHOLDERS' EQUITY

179,098

421,017

 


 


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$ 273,697


$ 484,797

 

SEGMENT FINANCIAL INFORMATION
(in thousands of US dollars and unaudited)

 

Three Months Ended December 31, 2005


CTC Network

Domashny Network

CTC TV Station Group

Domashny TV Station Group

Eliminations and Other

Total


Operating revenue

$ 62,718

$ 3,696

$ 21,107

$ 2,746

$ 62

$ 90,329

Direct operating expenses

(1,271)

(642)

(1,046)

(687)

253

(3,393)

Selling, general and administrative expenses

(3,523)

(1,429)

(3,874)

(1,493)

(1,256)

(11,575)

Amortization of programming rights

(18,226)

(3,231)

(692)

(39)

(111)

(22,299)

Amortization of sublicensing rights

(1,795)

-

-

-

-

(1,795)

Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights)

(219)

(115)

(977)

(1,649)

(542)

(3,502)

Operating income

$ 37,684

$ (1,721)

$ 14,518

$ (1,122)

$ (1,594)

$ 47,765

 

Three Months Ended December 31, 2006


CTC Network

Domashny Network

CTC TV Station Group

Domashny TV Station Group

Eliminations and Other

Total


Operating revenue

$77,282

$7,159

$29,511

$4,174

$(193)

$117,933

Direct operating expenses

(1,413)

(671)

(1,445)

(873)

178

(4,224)

Selling, general and administrative expenses

(3,289)

(1,817)

(2,877)

(2,337)

(5,018)

(15,338)

Amortization of programming rights

(26,069)

(3,991)

(880)

(8)

48

(30,900)

Amortization of sublicensing rights

(3,727)

-

-

-

-

(3,727)

Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights)

(240)

(144)

(1,340)

(3,150)

(530)

(5,404)

Operating income

$42,544

$ 536

$22,969

$(2,194)

$(5,515)

$58,340

 

Year Ended December 31, 2005


CTC Network

Domashny Network

CTC TV Station Group

Domashny TV Station Group

Eliminations and Other

Total


Operating revenue

$ 168,669

$ 9,346

$ 51,741

$ 7,761

$(40)

$ 237,477

Direct operating expenses

(4,522)

(2,186)

(3,945)

(2,660)

566

(12,747)

Selling, general and administrative expenses

(12,384)

(4,747)

(13,326)

(4,609)

(6,163)

(41,229)

Amortization of programming rights

(64,768)

(9,291)

(2,643)

(440)

(209)

(77,351)

Amortization of sublicensing rights

(2,043)

-

-

-

-

(2,043)

Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights)

(1,111)

(370)

(3,865)

(6,455)

(2,119)

(13,920)

Operating income

$83,841

$(7,248)

$ 27,962

$(6,403)

$(7,965)

$ 90,187

 

Year Ended December 31, 2006 (unaudited)


CTC Network

Domashny Network

CTC TV Station Group

Domashny TV Station Group

Eliminations and Other

Total


Operating revenue

$ 264,733

$20,649

$74,765

$11,566

$(879)

$370,834

Direct operating expenses

(5,158)

(2,793)

(4,984)

(3,333)

494

(15,774)

Selling, general and administrative expenses

(12,785)

(5,981)

(13,831)

(6,628)

(17,072)

(56,297)

Amortization of programming rights

(99,249)

(15,954)

(2,932)

(39)

148

(118,026)

Amortization of sublicensing rights

(6,773)

-

-

-

-

(6,773)

Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights)

(1,056)

(548)

(4,945)

(11,031)

(2,071)

(19,651)

Operating income

$139,712

$(4,627)

$48,073

$(9,465)

$(19,380)

$154,313

Fourth quarter/Full Year 2006 results press release (pdf, 196 KB)