ФИНАНСОВЫЕ РЕЗУЛЬТАТЫ «СТС МЕДИА» ЗА III КВАРТАЛ 2006 Г.

31.10.2006

Москва, Россия 31 октября 2006 года - CTC Media, Inc. (NASDAQ: CTCM), a leading television broadcaster in Russia, today reported financial results for the three- and nine-month periods ended September 30, 2006.



- Consolidated Revenue Increases 47.8% to $70.9 Million -
- OIBDA Increases 100.1% to $19.0 Million -
- Net Income of $8.4 Million, $0.05 Earnings Per Share -

US$ 000's, except per share data

Three Months Ended
September 30,




Nine Months Ended
September 30,



 

2005

2006


Change


2005

2006


Change

 
 
 
 
 
 
 
 
 
 

Total operating revenues

$47,984

$70,919

 

47.8%

 

$147,148

$252,901

 

71.9%

Total operating expenses

(41,987)

(57,223)

 

36.3%

 

(104,726)

(156,928)

 

49.8%

 
 
 
 
 
 
 
 
 
 

OIBDA*

9,506

19,022

 

100.1%

 

52,840

110,220

 

108.6%

 
 
 
 
 
 
 
 
 
 

Net income

$1,885

$8,443

 

347.9%

 

$24,393

$65,210

 

167.3%

Earnings per share

$0.01

$0.05

 

400.0%

 

$0.16

$0.43

 

168.8%



US$ 000's, except per share data Three Months Ended September 30 Nine Months Ended September 30
 
2005 2006 Change 2005 2006 Change
Total operating revenues $47,984 $70,919 47.8% $147,148 $252,901 71.9%
Total operating expenses (41,987) (57,223) 36.3% (104,726) (156,928) 49.8%
OIBDA* 9,506 19,022 100.1% 52,840 110,220 108.6%
Net income $1,885 $8,443 347.9% $24,393 $65,210 167.3%
Earnings per share $0.01 $0.05 400.0% $0.16 $0.43 168.8%

Заголовок строк Заголовок результатов 1 Заголовок результатов 2
 
2005 2006 Change 2005 2006 Change
Строка один - заголовок 123 123 123 123 123 13
Строка один - заголовок 123 123 123 123 123 13

*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 and nine-month results across all key financial metrics
· Consolidated revenue increased 48% to $70.9 million in the third quarter and 72% to $252.9 in the first nine months of 2006
· OIBDA increased 100% to $19.0 million and 109% to $110.2 million in the three- and nine-month periods ended September 30, 2006
· Net income increased 348% to $8.4 million in the third quarter and 167% to $65.2 million in the first nine months of 2006
· $0.05 and $0.43 fully diluted earnings per share for the three- and nine-month periods ended September 30, 2006, an increase of 400% and 169%, respectively

Corporate Highlights

· Combined audience share for the CTC and Domashny networks was 11.6% in the third quarter of 2006, in-line with the company's expectations
· Launched new television season which was generally well received by viewers
· Successfully implemented advertising price increases in response to regulatory changes which took effect July 1, 2006

Alexander Rodnyansky, Chief Executive Officer, stated, "During the third quarter we continued to outperform the fast-growing Russian television market. Our results reflect our success in consistently delivering our target demographics to advertisers and converting our audience shares into robust revenue growth. We continue to invest in our content, sales and marketing resources while prudently managing our costs. As a result we are improving our profitability and our financial position is strong. Looking ahead, we remain optimally positioned to execute our business plan and build value for our shareholders over the long term."”

Results for the Three Months Ended September 30, 2006

The third quarter is a historically low period in the broadcasting industry as a result of seasonality trends in viewing. While our direct operating costs are relatively evenly distributed throughout the year, selling, general and administrative costs in the third quarter include a significant portion of advertising and promotional expenses related to the launch of the new fall television season. As a result of these industry wide trends, CTC's revenues and profit margins are historically lowest in the third quarter.

CTC Media's total operating revenue for the three months ended September 30, 2006, increased 47.8% to $70.9 million from $48.0 million for the three months ended September 30, 2005. The revenue growth primarily reflects the continued growth of the Russian television advertising market and CTC's ability to deliver target audiences to advertisers.

The CTC Network's audience share was 10.1% for the third quarter of 2006, in-line with the company's expectations. Last year's third quarter audience share of 10.4% was primarily driven by the extraordinary success of the "Born Not Pretty" series on CTC that was launched in September 2005 and ended in July 2006. CTC remains the fourth most watched broadcaster in Russia overall. Domashny's audience share grew from 1.3% for the three months ended September 30, 2005, to 1.5% for the three months ended September 30, 2006. As a result, CTC Media's combined audience share was 11.6% in the third quarter of 2006 as compared to 11.7% in the third quarter of 2005.

Consolidated total operating expenses in the third quarter of 2006 amounted to $57.2 million compared to $42.0 million in the third 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 increases in the cost of programming, and increases in selling, general and administrative costs that included $3.0 million of stock-based compensation expense. Total operating expenses as a percentage of revenues decreased from 87.5% reported in the third quarter of 2005 to 80.7% in the third quarter of 2006.

OIBDA increased 100.1% to $19.0 million for the third quarter of 2006 compared to $9.5 million in the third quarter of 2005. The OIBDA margin improved from 19.8% to 26.8% over the same period.

Operating income for the quarter was $13.7 million compared with $6.0 million for the three months ended September 30, 2005, an increase of 128.4%. Operating income as a percentage of total operating revenue grew from 12.5% in the third quarter of 2005 to 19.3% in the third quarter of 2006.

Net income for the quarter was $8.4 million compared to $1.9 million for the three months ended September 30, 2005. Fully diluted income per share was $0.05 for the three months ended September 30, 2006, compared to $0.01 for the three months ended September 30, 2005.

Results for the Nine Months Ended September 30, 2006

CTC Media's total operating revenue for the nine months ended September 30, 2006, increased by 71.9% to $252.9 million from $147.1 million for the nine months ended September 30, 2005.

Consolidated total operating expenses for the first nine months of 2006 increased by 49.8% to $156.9 million compared to $104.7 million for the first nine months of 2005. Total operating expenses as a percentage of revenues decreased from 71.2% for the first nine months of 2005 to 62.1% for the first nine months of 2006.

OIBDA increased 108.6% to $110.2 million for the first nine months of 2006 compared to $52.8 million for the first nine months of 2005. OIBDA margin for the nine-month period increased from 35.9% in 2005 to 43.6% in 2006.

Operating income for the first nine months of 2006 was $96.0 million compared with $42.4 million for the first nine months of 2005, an increase of 126.2%. Operating income as a percentage of total operating revenue grew from 28.8% for the first nine months of 2005 to 37.9% for the first nine months of 2006.

Net income for the nine months ended September 30, 2006 was $65.2 million compared to $24.4 million for the nine months ended September 30, 2005. Fully diluted income per share was $0.43 for the nine months ended September 30, 2006, compared to $0.16 for the nine months ended September 30, 2005.

Guidance

For the full year ending December 31, 2006, the Company reconfirms its guidance for consolidated total operating revenue in the range of $360 to $385 million, with a consolidated OIBDA margin in the range of 46-47%.

Conference Call

The Company will also host a conference call to discuss its third quarter 2006 financial results today, Tuesday, October 31, at 9 a.m. ET, corresponding to 5 p.m. Moscow time. To access the conference call, please dial +1 973 582 2857_pnh_highlighting_inactive_common"> +1 973 582 2857 end_of_the_skype_highlighting end_of_the_skype_highlighting (International) or 8108 002 531 1012 (Russia) and reference pass code 7990688. 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, November 13, 2006, at midnight ET. The replay can be accessed by dialing +1 973 341 3080 begin_of_the_skype_highlighting              +1 973 341 3080      end_of_the_skype_highlighting end_of_the_skype_highlighting. The pass code for the replay is 7990688. 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, which reaches approximately 100 million people through over 320 affiliate stations, including 17 owned-and-operated stations; and the Domashny television network, which reaches approximately 57 million people through over 190 affiliate stations, including six 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 begin_of_the_skype_highlighting              + 7 495 783 3650      end_of_the_skype_highlighting end_of_the_skype_highlighting

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

 

Финансовые результаты за III квартал 2006 года (англ. pdf, 178KB)