CTC MEDIA REPORTS FIRST QUARTER 2007 FINANCIAL RESULTS

27.04.2007
Moscow, Russia – April 27, 2007 – CTC Media, Inc. (NASDAQ: CTCM), a leading television broadcaster in Russia, today reported financial results for the three-month period ended March 31, 2007.

FIRST QUARTER 2007 FINANCIAL RESULTS
- Consolidated Revenue Increases 31.4% to $104.1 Million -
- OIBDA* Increases 20.3% to $44.3 Million -
- Net Income of $28.1 Million, $0.18 Diluted Earnings per Share -

US$ 000's, except per share data

Three Months Ended 
Marh 31,




 




 

2006

2007


Change


 


 



 


 
 
 
 
 
 
 
 
 
 

Total operating revenues

$79,224

$104,121

 

31.4%

 

 


 


 

 


Total operating expenses

(46,156)

(65,605)

 

42.1%

 

 


 


 

 


 
 
 
 
 
 
 
 
 
 

OIBDA*

36,806

44,288

 

20.3%

 

 


 


 

 


 
 
 
 
 
 
 
 
 
 

Net income

$22,654

$28,123

 

24.1%

 

 


 


 

 


Diluted earnings per share

$0.15

$0.18

 

20.0%

 

 


 


 

 


*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.

Financial Highlights

·Strong quarterly results across all key financial metrics
·Consolidated revenue increased 31% to $104.1 million
·OIBDA increased 20% to $44.3 million
·Net income increased 24% to $28.1 million
·$0.18 diluted earnings per share, an increase of 20%

Corporate Highlights

·Domashny Network audience share of 1.9% in the first quarter of 2007 up from 1.5% in the fourth quarter of 2006 and significantly higher than 1.3% in the first quarter of 2006
·CTC Network audience share of 9.3% up from 9.0% in the fourth quarter of 2006 but, as expected, lower than 10.8% in the first quarter of 2006, which benefited from ‘Born Not Pretty’
·Domashny and CTC Networks built audience share throughout the first quarter
·Strong start of the spring programming season with the launch of the second season of ‘Cadets’ in March
·Acquired a new station in Rostov-on-Don for Domashny Television Station Group
·Acquired the remaining 49% interest in our CTC Samara station

Alexander Rodnyansky, Chief Executive Officer, stated, “Our results were once again in line with our expectations and demonstrate the continued growth of our networks and the overall Russian television market, as well as the efficiency of our business model. CTC and Domashny are delivering their younger targeted demographics to advertisers and have improved their market share each month during the quarter.

“We are particularly pleased with the performance of the Domashny Network which is demonstrating impressive increases in audience share and revenues. Revenues of our Domashny Network and stations doubled compared to first quarter 2006 reaching $11.7 million on the back of a 46% increase in audience share and robust market growth.

“Our revenue and OIBDA growth remains robust, despite comparisons against an exceptionally strong year ago period. Our programming strategy is on track and we are very optimistic about the launch of several exciting premieres in different timeslots this year. Given our strong brands, experienced management team and solid balance sheet, we are well positioned to continue to capitalize on the rapidly expanding Russian television advertising market.”

 Results for the Three Months Ended March 31, 2007

CTC Media’s total operating revenue for the three months ended March 31, 2007 increased 31.4% to $104.1 million from $79.2 million for the three months ended March 31, 2006. The revenue growth primarily reflects the continued growth of the Russian television advertising market and CTC’s ability to deliver target audiences to advertisers.

CTC Network’s audience share was 9.3% for the first quarter of 2007. Last year’s first quarter audience share of 10.8% was largely driven by the extraordinary success of the “Born Not Pretty” series. CTC remains the fourth most watched broadcaster in Russia overall. Domashny’s audience share grew from 1.3% for the three months ended March 31, 2006, to 1.9% for the three months ended March 31, 2007. As a result, CTC Media’s combined audience share was 11.2% in the first quarter of 2007 as compared to 12.1% in the first quarter of 2006.

Consolidated total operating expenses in the first quarter of 2007 increased by 42.1% to $65.6 million compared to $46.2 million in the first quarter of 2006. The increase in total operating expenses in absolute terms was primarily driven by an increase in amortization of programming and sublicensing rights expenses, and increases in selling, general and administrative costs, that included $3.0 million of stock-based compensation expense and increased promotional costs.

OIBDA increased 20.3% to $44.3 million for the first quarter of 2007 compared to $36.8 million in the first quarter of 2006.

Operating income for the quarter was $38.5 million compared to $33.1 million for the three months ended March 31, 2006, an increase of 16.5%.

Net income for the quarter was $28.1 million compared to $22.7 million for the three months ended March 31, 2006. Diluted income per share was $0.18 for the three months ended March 31, 2007, compared to $0.15 for the three months ended March 31, 2006.

All figures included in this press release are unaudited.

Guidance

For the full year ending December 31, 2007, the Company reconfirms its guidance for 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 also host a conference call to discuss its first quarter 2007 financial results today, Friday, April 27, at 9:00 a.m. ET (5:00 p.m. Moscow time). To access the conference call, please dial +1 973 935 8867 (International) or 8108 002 531 1012 (Russia) and reference pass code 8645050. A live webcast of the conference call will also be available on the Company's corporate web site at www.ctcmedia.ru/investors. A replay of the conference call will be available through Friday, May 11, 2007 at midnight ET. The replay can be accessed by dialing +1 973 341 3080. The pass code for the replay is 8645050. A webcast of the conference call will 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 340 affiliate stations, including 17 owned-and-operated stations; and the Domashny television network, whose signal is carried by over 210 affiliate stations, including eight owned and operated stations. The Company is traded on the NASDAQ Global Market under the symbol: "CTCM". For more information on CTC Media, please visit: www.ctcmedia.ru.

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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

 

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Please use the following link to download the full text of the press release First Quarter 2007 Results Press Release (pdf, 175KB)