Reuters: Hot Stocks: UPDATE 1-Loss-making broadcaster CME seeks $400 mln to cut debt

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Loss-making broadcaster CME seeks $400 mln to cut debt Apr 29th 2013, 14:46 Mon Apr 29, 2013 10:46am EDT * Top shareholder Time Warner to provide most of funds * CME to use net proceeds to buy back 2016 notes * Posts Q1 loss, revenue down 18 percent * Sees 2013 revenue at $750-$770 million (Adds 2013 guidance, debt outlook, more on shares) PRAGUE, April 29 (Reuters) - Loss-making broadcaster Central European Media Enterprises (CME) plans to raise around $400 million gross, mostly from top shareholder Time Warner, to cut debt amid plunging advertising revenues. CME, which owns television channels in six central and eastern European markets, said on Monday it had started a public offering of shares to raise around $174 million gross and that Time Warner had committed to buying 49.9 percent of the class A stock to maintain its stake at that level. CME said it also planned to sell around $200 million of class B preferred stock to Time Warner in a private placement. CME, which said it made a net loss of $109 million in the first quarter, is struggling as weak local economies have blunted advertisers' willingness to spend and cash-strapped consumers have balked at its attempt to raise prices. The broadcaster said revenue was likely to dip this year to $750-770 million from $772.1 million in 2012. Operating income before depreciation and amortisation (OIBDA) was likely to fall to $100-120 million from $125.4 million, it added. Time Warner bought a 31 percent stake in CME in 2009 and has gradually raised its holding in a company founded by billionaire Ronald Lauder in 1994. Last year it gave CME a cash injection. CME said it would use $300 million of the net proceeds from the latest fundraisings to buy back a portion of 11.625 percent senior notes due in 2016. Net debt stood at $1.07 billion at the end of March, and Chief Financial Officer David Sach said it should fall to around $700 million, or around six times guided OIBDA. At 1435 GMT, CME shares, which traded at around 260 crowns when Time Warner bought into the company in March 2009, were down 9.5 percent at 78.10 crowns. CME Chief Executive Adrian Sarbu said the company would press ahead with price rises, such as double-digit percentage increases in the Czech Republic, its biggest market. "Our pricing actions in the Czech Republic and across our region will continue as we are determined to reverse the trend of declining TV advertising spending," he said. CME's TV ad markets fell 12 percent in the first quarter, including an 18 percent drop in the Czech Republic. The company said first-quarter revenue dropped 18 percent to $137 million but that it expected its new pricing initiatives to improve results in the second half of the year. (Reporting by Jason Hovet and Jan Korselt; Editing by Mark Potter) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions