OREANDA-NEWS. November 16, 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 third quarter ended September 30, 2012, reported the press-centre of CTC Media.

THIRD QUARTER FINANCIAL HIGHLIGHTS

Total revenues of \\$162.0 million – up 12% year-on-year in ruble terms

Russian advertising revenues up 11% year-on-year in ruble terms

Adjusted OIBDA of \\$43.4 million with an adjusted OIBDA margin of 26.8%

Adjusted fully diluted earnings per share of \\$0.17 (Q3 2011: \\$0.19)

Net cash position of \\$96.4 million at the end of the period

The Board of Directors has declared a cash dividend of \\$0.13 per share to be paid on or about December 28, 2012 to shareholders of record as of December 1, 2012.

OPERATING HIGHLIGHTS

Nikolay Surikov appointed as CFO in October

Natalia Bilan appointed as Head of Story First Production, Natalia Korotkova appointed as Head of Domashny Channel and Konstantin Khachaturov appointed as Chief Business Support Officer in October

Combined Russian national inventory fully sold-out for Q3 and approximately 95% sold-out for the full year

New logo and on-air identity of CTC Channel launched in September

CTC Media content made available on Sony Entertainment Network in September

Multi-year programming deal signed between Channel 31 in Kazakhstan and Warner Bros. in August

Boris Podolsky, Chief Executive Officer of CTC Media, commented: “Our total operating revenues were up 12% in ruble terms in the third quarter of 2012, while our Russian advertising sales grew by 11% and in line with the growth in Russian TV advertising spending. While the market growth was higher in the third quarter than in the first half of the year, for the full year we continue to expect up to 10% growth in the TV advertising spending in ruble terms.

“Our third quarter results were impacted by non-cash impairment charges related to our analog broadcasting licenses, which were triggered by recent official announcements of the terms of a tender for a second digital multiplex and the planned schedule for the switch-off of the analog broadcasting system, but our underlying profitability remains strong. We delivered a solid adjusted OIBDA margin of 26.8% in the third quarter and we continue to expect OIBDA margin at or around 30% for the full year, when adjusted for non-recurring asset impairment charges recognized in the quarter.

“With successful launches of our Fall schedule premieres, which included follow-up seasons of our hit “Daddy’s Daughters” sitcom and “Boarding School” series, CTC Network demonstrated strong ratings in weekday prime time in September. Together with the overall rise in television viewership in Russia, this enabled us to maintain stable year-on-year inventory in the third quarter, despite a year-on-year decline in the CTC Network’s target audience share. Our Domashny and Peretz Channels continued to generate higher ratings year-on-year in Q3, and Peretz’s year-on-year advertising sales increase was almost five times greater than the Russian TV advertising market growth in the quarter.

“We continue to roll out our CTC Fall schedule and have more first-run shows in the pipeline to be launched by the end of the year. Our most recently premiered series, “Kitchen”, has already become a major success and was the most-watched show on Russian television in the 9pm weekday slot among 6-54 and 10-45 year old viewers in the past 2 weeks. In addition to new shows, this Fall season on the CTC Channel also boasts a revamped logo and on-air identity.

“Revenues from our CIS operations were up 28% year-on-year in US dollar terms in the third quarter of 2012, primarily reflecting higher sellout ratios for Channel 31 in Kazakhstan. CTC-International again almost tripled its sales in US dollar terms in the third quarter of 2012, as the channel further expanded its broadcast footprint.

“In line with our long-term strategy, we have continued to invest in our in-house content production and broader programming acquisitions, as well as in the build-out of our footprint and online presence. We also distributed USD 61.7 million in the first nine months of the year in cash dividends and still ended the period with net cash of USD 96.4 million. We also declared a further dividend of USD 0.13 per share to be paid in the fourth quarter.

“Looking ahead, our Russian channels are now approximately 95% sold out for 2012 at higher average prices than last year, and negotiations with the advertisers for 2013 are now in full swing. We have also made the important strategic decision that all three of our Russian channels – CTC, Domashny and Peretz – participate in the recently announced tender for slots in the second multiplex. We believe that presence in the digital TV spectrum will be value accretive for all three channels in the longer run and will enable us to grow our market shares, free cash flows and shareholder returns. We also believe that we have a strong alternative transmission option if one or more of our channels is not successfully allocated a slot in the second multiplex.”