OREANDA-NEWS. August 13, 2012. CTC Media, Inc. (“CTC Media” or the “Company”) (NASDAQ: CTCM), Russia’s leading independent media company, announced its unaudited consolidated financial results for the second quarter, ended June 30, 2012, reported the press-centre of CTC Media. 

SECOND QUARTER FINANCIAL HIGHLIGHTS

Total revenues of USD 187.6 million – up 2% year-on-year in ruble terms

Russian advertising sales stable year-on-year in ruble terms

OIBDA of USD 54.1 million with an OIBDA margin of 28.8%

Fully diluted earnings per share of USD 0.22

Net cash position of USD 124.2 million at end of the period

USD 0.13 per share cash dividend to be paid on September 28, 2012 to stockholders of record as of September 1, 2012

OPERATING HIGHLIGHTS

Appointment of Boris Podolsky as CEO of CTC Media in June

Combined Russian national inventory 98% sold-out for Q2 and approximately 90% contracted for the full year

Domashny Network recorded all-time high quarterly target audience share of 3.8% in Q2

Launch of CTC-International channel via the terrestrial network in Kyrgyzstan in April; on cable networks in Armenia, Azerbaijan and Georgia in May; and on cable networks in Thailand in July

Launch of Domashny and Peretz apps on LG smart TVs in July

Acquisition of regional television stations in Belgorod (for CTC channel) and Bratsk (for Peretz channel)

Boris Podolsky, Chief Executive Officer of CTC Media, commented: “Our total operating revenues were up 10% in ruble terms in the first half of 2012, while our Russian TV advertising sales grew by 7% and in line with the estimated growth in Russian TV advertising spending. The advertising market growth was lower in the second quarter than in the first quarter as anticipated, due mainly to the comps in 2011.

“Our Domashny and Peretz Networks continued to generate higher ratings and Domashny recorded its highest ever quarterly target audience share in the second quarter. Revenues for our CIS operations were up 31% year-on-year in US dollar terms in the first half of 2012, following higher sellout ratios for Channel 31 in Kazakhstan. CTC-International more than tripled its sales in US dollar terms in the first half of 2012, as the channel further expanded its broadcast footprint.

“We have continued to invest in our in-house content production and broader programming acquisition, as well as in the build-out of our footprint and online presence. However, our high cash conversion levels have enabled us to pay out quarterly cash dividends totaling \\$41.1 million in the first half of the year and still end the period with net cash of \\$124.2 million. As previously announced, we intend to pay out quarterly dividends totaling approximately \\$80 million in 2012.
“Our Russian channels are now approximately 90% sold out for 2012 at higher average prices than last year and our soon to be launched Fall schedule will feature more prime-time premieres across more genres than ever before - including original productions, adaptations of successful international formats, new series of proven hits and second seasons of successful shows premiered in the Spring.

“We have also made the important strategic decision to adjust the target demographics for the CTC and Peretz Networks to “all 10-45” and “all 25-49”, respectively. The change will take place from the beginning of 2013 and reflects the Company’s overall positioning strategy for Domashny and Peretz and the channels’ high affinity levels in these commercially attractive audience groups. The transition is therefore expected to have a positive impact on both audience shares and inventory levels moving forward.”

“All in all, the outlook for the Russian TV advertising market and our own investments has not changed, and we continue to expect our new media, CIS, sublicensing and CTC-International channel revenues to grow faster than the Russian market.”