Central European Media Enterprises Reports Its Best Ever Full-Year Results

Central European Media Enterprises Reports Its Best Ever Full-Year Results

FULL-YEAR - Net Revenues Increase 39% - Operating Income grows $65.4 Million to $206.0 Million - Segment(1) EBITDA Increases 46%

FOURTH QUARTER - Net Revenues Increase 40% - Operating Income Improves $23.9 Million to $97.8 Million - Segment(1) EBITDA Increases 33%

HAMILTON, Bermuda, Feb. 28 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME" or the "Company") (Nasdaq/Prague Stock Exchange - CETV) today announced financial results for the fourth quarter and full-year ended December 31, 2007 which were the strongest in the Company's history. The Company recorded its highest ever revenues, Segment(1) EBITDA and operating income.

Net revenues for the year ended December 31, 2007 increased 39% to $840.0 million, compared to the year ended December 31, 2006. Operating income increased $65.4 million to $206.0 million. Net income from continuing operations increased $63.3 million to $88.6 million, and fully diluted earnings per share in respect of continuing operations increased $1.50 to $2.12. Segment(1) EBITDA for the year ended December 31, 2007 increased 46% to $319.7 million, compared to the year ended December 31, 2006. Our consolidated results for 2007 include Markiza in the Slovak Republic, which was not consolidated until January 23, 2006.

Net revenues for the fourth quarter of 2007 increased 40% to $301.0 million, compared to the fourth quarter of 2006. Operating income for the quarter increased $23.9 million to $97.8 million. Net income from continuing operations increased $46.8 million to $73.0 million, and fully diluted earnings per share in respect of continuing operations increased by $1.07 to $1.71. Segment(1) EBITDA for the quarter increased 33% to $128.6 million, compared to the fourth quarter of 2006.

Michael Garin, Chief Executive Officer of CME, said: "CME's incredible performance in 2007 made us one of the fastest growing multinational broadcasters in the world. From this impressive base, we plan to more than double revenues within the next five years and for Segment(1) EBITDA to grow even faster - and this is before any acquisitions. With strong growth in our core TV business enhanced by our fast developing new media activities and rapid multi-channel expansion, CME is well positioned to continue to deliver outstanding value to shareholders."

Adrian Sarbu, Chief Operating Officer of CME, added: "Our outstanding 2007 results are a springboard for our future growth in all of our markets. In Ukraine our target is to be the leading broadcaster within three years and to take full advantage of the significant growth potential of our largest market."

Consolidated Results for the Three Months Ended December 31, 2007

Consolidated net revenues for the three months ended December 31, 2007 increased by 40% to $301.0 million from $214.3 million for the three months ended December 31, 2006. Operating income for the quarter was $97.8 million compared to $73.9 million for the three months ended December 31, 2006. Net income for the quarter was $73.0 million compared to $26.2 million for the three months ended December 31, 2006. Fully diluted earnings per share for the three months ended December 31, 2007 increased $1.07 to $1.71.

Headline Consolidated Results for the three months ended December 31, 2007 and 2006 were:

CONSOLIDATED RESULTS (Unaudited)
For the Three Months Ended December 31,
(US $000's)
2007 2006 $ change % change
Net revenues $300,959 $214,290 $86,669 40%
Operating income $97,784 $73,887 $23,897 32%
Net income from
continuing operations $72,990 $26,232 $46,758 178%
Net income $72,990 $26,232 $46,758 178%
Fully diluted earnings
per share from
continuing operations $1.71 $0.64 $1.07 167%
Fully diluted earnings
per share $1.71 $0.64 $1.07 167%

Consolidated Results for the Year Ended December 31, 2007

Consolidated net revenues for the year ended December 31, 2007 increased by 39% to $840.0 million from $603.1 million for the year ended December 31, 2006. Operating income for the year was $206.0 million compared to $140.7 million for the year ended December 31, 2006. Net income for the year was $88.6 million compared to $20.4 million for the year ended December 31, 2006. Fully diluted earnings per share increased from $0.50 to $2.12 for the year ended December 31, 2007.

Headline Consolidated Results for the years ended December 31, 2007 and 2006 were:

CONSOLIDATED RESULTS
For the Year Ended December 31,
(US $000's)
2007 2006 $ change % change
Net revenues $839,991 $603,115 $236,876 39%
Operating income $206,044 $140,674 $65,370 46%
Net income from
continuing operations $88,568 $25,287 $63,281 250%
Net income $88,568 $20,424 $68,144 334%
Fully diluted earnings
per share from
continuing operations $2.12 $0.62 $1.50 242%
Fully diluted earnings
per share $2.12 $0.50 $1.62 324%

Segment(1) Results

We evaluate the performance of our television operations based on Segment(1) Net Revenues and EBITDA (earnings before interest, taxes, depreciation and amortization).

Segment(1) Results for the Three Months Ended December 31, 2007

For the three months ended December 31, 2007, Total Segment(1) Net Revenues increased 40% to $301.0 million from $214.3 million for the three months ended December 31, 2006. Total Segment(1) EBITDA for the three months ended December 31, 2007 increased 33% to $128.6 million from $96.8 million in the three months ended December 31, 2006. Segment(1) EBITDA Margin for the three months ended December 31, 2007 was 43% compared to 45% for the three months ended December 31, 2006.

Our Total Segment(1) Net Revenues, Total Segment(1) EBITDA and Segment(1) EBITDA margin for the three months ended December 31, 2007 and 2006 were:

SEGMENT (1) RESULTS (Unaudited)
For the Three Months Ended December 31,
(US $000's)
2007 2006 $ change % change
Segment Net Revenues -
Broadcast Operations $299,403 $212,980 $86,423 41%
Segment Net Revenues -
Non-Broadcast Operations $1,556 $1,310 $246 19%
Total Segment Net
Revenues $300,959 $214,290 $86,669 40%
Segment EBITDA -
Broadcast Operations $130,035 $97,093 $32,942 34%
Segment EBITDA - Non-
Broadcast Operations $(1,481) $(330) $(1,151) 349%
Total Segment EBITDA $128,554 $96,763 $31,791 33%
Segment EBITDA Margin 43% 45%

Segment(1) Results for the Year Ended December 31, 2007

For the year ended December 31, 2007, Total Segment(1) Net Revenues increased 39% to $840.0 million from $604.9 million for the year ended December 31, 2006. Total Segment(1) EBITDA for the year ended December 31, 2007 increased 46% to $319.7 million from $218.8 million in the year ended December 31, 2006. Segment(1) EBITDA Margin for the year ended December 31, 2007 was 38% compared to 36% for the year ended December 31, 2006.

Our Total Segment(1) Net Revenues, Total Segment(1) EBITDA and Segment(1) EBITDA margin for the year ended December 31, 2007 and 2006 were:

SEGMENT (1) RESULTS (Unaudited)
For the Year Ended December 31,
(US $000's)
2007 2006 $ change % change
Segment Net Revenues -
Broadcast Operations $836,367 $601,885 $234,482 39%
Segment Net Revenues -
Non-Broadcast Operations $3,624 $2,990 $634 21%
Total Segment Net
Revenues $839,991 $604,875 $235,116 39%
Segment EBITDA -
Broadcast Operations $323,573 $219,128 $104,445 48%
Segment EBITDA - Non-
Broadcast Operations $(3,878) $(286) $(3,592) Nm%
Total Segment EBITDA $319,695 $218,842 $100,853 46%
Segment EBITDA Margin 38% 36%

The Company will host a teleconference to discuss its fourth quarter and 2007 year-end results on Thursday, February 28, 2008 at 11:00 a.m. EST (4:00 p.m. GMT and 5:00 p.m. CET). The teleconference will refer to presentation slides which will be available on CME's website www.cetv-net.com prior to the call.

To access the teleconference, U.S. and international callers may dial +1 973-321-1024 ten minutes prior to the start time. The conference call will be broadcast live via www.cetv-net.com.

A replay of the teleconference will be available for two weeks following the call and may be accessed by dialing +1 (800) 642-1687 for U.S. callers and +1 (706) 645-9291 for International callers, passcode: 34427035. A digital audio replay in mp3 format will also be archived on CME's Web site.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements, including those relating to our business strategies and commitments. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, general market and economic conditions in our markets as well as in the United States and Western Europe; the results of additional investment in Croatia and Ukraine; the expected completion dates and the impact of the buyout our partners in the Studio 1+1 Group in Ukraine; the growth of television advertising spending and the rate of development of advertising in our markets; our ability to make future investments in television broadcast operations; our ability to develop and implement strategies regarding sales and multi-channel distribution; the performance of obligations by third parties with whom we have entered into agreements; the general political, economic and regulatory environments where we operate and application of relevant laws and regulations; the renewals of broadcasting licenses and our ability to obtain additional frequencies and licenses; and our ability to acquire necessary programming and attract audiences. For a more detailed description of these uncertainties and other factors, please see the "Risk Factors" section in CME's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on February 28, 2008.

This press release should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 28, 2008.

We make available, free of charge, on our website at http://www.cetv-net.com/ our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.

CME is a TV broadcasting company operating leading networks in six Central and Eastern European countries with an aggregate population of approximately 90 million people. The company's television stations are located in Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema, Galaxie Sport), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV), Slovakia (Markiza, Galaxie Sport), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International, Kino, Citi). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".

For additional information, please visit www.cetv-net.com.

(1) Segment Data, Segment Net Revenues and Segment EBITDA are all non US- GAAP measures For further details, including a reconciliation to the most directly comparable US-GAAP financial measures, see 'Reconciliation Between Consolidated Statements of Operations and Segment Data (non US-GAAP)' below. We define Segment EBITDA margin as Segment EBITDA expressed as a percentage of Segment Net Revenue.

CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ 000's, except share and per share data)

For the Years Ended December 31,
2007 2006 2005

Net revenues $839,991 $603,115 $400,978
Operating costs 117,959 90,060 65,138
Cost of programming 330,303 227,509 148,837
Station selling, general and
administrative expenses 72,034 65,412 46,382
Depreciation of station property,
plant & equipment 33,294 25,795 16,367
Amortization of broadcast
licenses and other intangibles 24,984 18,813 11,180
Corporate operating costs
(including the cost of
settling our Croatia
litigation of $12.5 million in
2007 and non-cash stock- based
compensation of $5.7 million,
$3.6 million and $3.1 million in
2007, 2006 and 2005, respectively) 55,373 34,104 25,547
Impairment charge - 748 35,331
Operating income 206,044 140,674 52,196
Interest expense, net (49,271) (37,863) (25,263)
Foreign currency exchange loss, net (34,441) (44,908) 37,968
Change in fair value of derivatives (3,703) (12,539) -
Other income / (expense) 7,891 3,038 (4,705)
Income before provision for income
taxes, minority interest, equity
in income of unconsolidated
affiliates and discontinued
operations 126,520 48,402 60,196
Provision for income taxes (20,795) (14,962) (16,691)
Income before minority interest,
equity in income of
unconsolidated affiliates and
discontinued operations 105,725 33,440 43,505
Minority interest in income
of consolidated subsidiaries (17,157) (13,602) (8,908)
Equity in (loss) / income
of unconsolidated affiliates - (730) 8,238
Gain on sale of unconsolidated
affiliate - 6,179 -
Net income from continuing
operations 88,568 25,287 42,835
Net loss from discontinued
operations - (4,863) (513)
Net income $88,568 $20,424 $42,322

PER SHARE DATA:
Net income/(loss) per share
Continuing operations - Basic $2.14 $0.63 $1.24
Continuing operations - Diluted 2.12 0.62 1.21
Discontinued operations - Basic - (0.12) (0.01)
Discontinued operations - Diluted - (0.12) (0.01)
Net income - Basic 2.14 0.51 1.22
Net income - Diluted $2.12 $0.50 $1.19

Weighted average common shares used in
computing per share amounts (000s):
Basic 41,384 40,027 34,664
Diluted 41,833 40,600 35,430

CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(US$ 000's, except share and per share data)(Unaudited)

For the Three Months Ended December 31,
2007 2006 2005

Net revenues $300,959 $214,290 $152,498
Operating costs 34,192 18,973 20,405
Cost of programming 115,268 78,321 53,964
Station selling, general and
administrative expenses 22,945 20,224 14,126
Depreciation of station property,
plant & equipment 9,947 7,954 6,300
Amortization of broadcast licenses
and other intangibles 8,062 4,846 5,344
Corporate operating costs (including
non-cash stock-based compensation
of $1.6 million, $1.2 million and
$0.7 million in 2007, 2006 and
2005, respectively) 12,760 10,085 9,439
Operating income 97,785 73,887 42,920
Interest expense, net (10,880) (9,690) (10,312)
Foreign currency exchange
(loss) / gain, net (5,889) (19,439) 7,682
Change in fair value of derivatives (7,200) (9,782) -
Other income / (expense) 8,637 3,831 (176)
Income before provision for
income taxes, minority interest,
equity in income of unconsolidated
affiliates and discontinued
operations 82,453 38,807 40,114
Provision for income taxes (2,186) (6,151) (8,579)
Income before minority interest,
equity in income of unconsolidated
affiliates and discontinued
operations 80,267 32,656 31,535
Minority interest in income of
consolidated subsidiaries (7,276) (6,424) (5,264)
Equity in income of unconsolidated
affiliates - - 3,418
Net income from continuing
operations 72,991 26,232 29,689
Net income from discontinued
operations - - 4,863
Net income $72,991 $26,232 $34,552

PER SHARE DATA:
Net income per share
Continuing operations - Basic $1.73 $0.64 $0.78
Continuing operations - Diluted 1.71 0.64 0.77
Discontinued operations - Basic - - 0.13
Discontinued operations - Diluted - - 0.13
Net income - Basic 1.73 0.64 0.91
Net income - Diluted $1.71 $0.64 $0.90

Weighted average common shares used in
computing per share amounts (000s):
Basic 42,297 40,725 37,972
Diluted 42,654 41,276 38,554

Segment Data

We manage our business on a geographic basis, and review the performance of each geographic segment using data that reflects 100% of operating and license company results. Our segments are comprised of Croatia, the Czech Republic, Romania, the Slovak Republic, Slovenia and our two businesses in Ukraine.

We evaluate the performance of our segments based on Segment EBITDA. Segment Net Revenues and Segment EBITDA include the results of certain entities (primarily our operations in the Slovak Republic) that were not consolidated until January 23, 2006.

Segment EBITDA is determined as segment net income/loss, which includes costs for program rights amortization, before interest, taxes, depreciation and amortization of broadcast licenses and other intangible assets. Items that are not allocated to our segments for purposes of evaluating their performance, and therefore are not included in Segment EBITDA, include:

-- expenses presented as corporate expenses in our consolidated
statements of operations;
-- stock-based compensation charges;
-- foreign currency exchange gains and losses;
-- changes in fair value of derivatives; and
-- certain unusual or infrequent items (e.g., gains and
losses/impairments on assets or investments, gain on sale of
unconsolidated affiliates).

We use Segment EBITDA as a component in determining management bonuses.

Below is a table showing our Segment EBITDA by operation and a reconciliation of these figures to our consolidated results for the years ended December 31, 2007, 2006 and 2005, and for the three months ended December 31, 2007 and 2006:

Reconciliation between Consolidated Statements of Operations
and Segment Data (non-US GAAP)

SEGMENT FINANCIAL INFORMATION
For the Years Ended December 31,
(US $000's)
Segment Net Revenues (1) Segment EBITDA
2007 2006 2005 2007 2006 2005
Country
Croatia
(NOVA TV) $37,193 $22,310 $22,030 $(13,882) $(14,413) $(15,866)
Czech Republic
(2) 279,237 208,387 154,010 156,496 100,488 71,544
Romania (3) 215,402 148,616 103,321 93,075 65,860 43,803
Slovak Republic
(MARKIZA TV) 110,539 73,420 64,266 41,532 20,805 17,240
Slovenia (POP
TV and
KANAL A) 69,647 54,534 48,770 22,767 19,842 19,337
Ukraine
(STUDIO 1+1) 125,323 96,413 72,847 27,000 29,973 21,803
Ukraine
(KINO, CITI)
(4) 2,650 1,195 - (7,293) (3,713) -
Total Segment
Data $839,991 $604,875 $465,244 $319,695 $218,842 $157,861

Reconciliation to
Consolidated
Statement of
Operations:

Consolidated Net
Revenues / Income
before provision for
income taxes,
minority interest,
equity in income of
unconsolidated
affiliates and
discontinued
operations $839,991 $603,115 $400,978 $126,520 $48,402 $60,196

Corporate operating
costs (including the
cost of settling
Croatian litigation
of $12.5 million in
2007 and non-cash
stock-based
compensation of $5.7
million, $3.6
million and $3.1
million in 2007,
2006 and 2005,
respectively) - - - 55,373 34,104 25,547

Impairment
charge - - - - 748 35,331

Unconsolidated
Equity Affiliates
(5) - 1,760 64,266 - (1,292) 17,240
Depreciation of
station assets - - - 33,294 25,795 16,367
Amortization of
broadcast
licenses and
other intangibles - - - 24,984 18,813 11,180
Interest expense,
net - - - 49,271 37,863 25,263
Foreign currency
exchange loss /
(gain), net - - - 34,441 44,908 (37,968)
Change in fair value
of derivatives - - - 3,703 12,539 -
Other (income) /
expense - - - (7,891) (3,038) 4,705
Total Segment
Data $839,991 $604,875 $465,244 $319,695 $218,842 $157,861

(1) All net revenues are derived from external customers. There are no
inter-segmental revenues.
(2) We acquired TV NOVA in May 2005 and GALAXIE SPORT in September 2005.
We launched NOVA CINEMA in December 2007.
(3) Romanian networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL,
SPORT.RO and MTV.
(4) We acquired our Ukraine (KINO, CITI) operations in January 2006.
(5) Our Slovak Republic operations were accounted for as an equity
affiliate until January 23, 2006.

SEGMENT FINANCIAL INFORMATION
For the Three Months Ended December 31,
(US $000's)
Segment Net Revenues (1) Segment EBITDA

2007 2006 2007 2006
Country
Croatia (NOVA TV) $12,492 $8,565 $(4,083) $(2,774)
Czech Republic
(2) 96,034 71,384 57,245 40,916
Romania (3) 79,424 51,679 35,921 26,106
Slovak Republic
(MARKIZA TV) 41,924 28,273 18,520 11,547
Slovenia (POP TV
and KANAL A) 25,338 19,651 10,522 9,155
Ukraine (STUDIO 1+1) 44,965 34,297 12,211 13,799
Ukraine (KINO,
CITI) (4) 782 441 (1,782) (1,977)

Total Segment Data $300,959 $214,290 $128,554 $96,772

Reconciliation to
Consolidated
Statement of
Operations:
Consolidated Net
Revenues / Income
before provision for
income taxes,
minority interest,
equity in income of
unconsolidated
affiliates and
discontinued
operations $300,959 $214,290 $82,453 $38,807
Corporate operating
costs (including
non-cash stock-based
compensation of $1.6
million and $1.2
million in 2007 and
2006, respectively) - - 12,760 10,085
Depreciation of
station assets - - 9,947 7,954
Amortization of
broadcast licenses
and other
intangibles - - 8,062 4,846
Interest expense,
net - - 10,880 9,690
Foreign currency
exchange loss, net - - 5,889 19,439
Change in fair value
of derivatives - - 7,200 9,782
Other income - - (8,637) (3,831)
Total Segment Data $300,959 $214,290 $128,554 $96,772

(1) All net revenues are derived from external customers. There are no
inter-segmental revenues.
(2) Czech Republic networks are TV NOVA, GALAXIE SPORT and NOVA CINEMA.
(3) Romanian networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL,
SPORT.RO and MTV.
(4) We acquired our Ukraine (KINO, CITI) operations in January 2006.

First Call Analyst:
FCMN Contact:

Source: Central European Media Enterprises Ltd.

CONTACT: Romana Tomasova, Director of Corporate Communications, Central
European Media Enterprises, +44 20 7430 5357, or romana.tomasova@cme-net.com

Web site:

http://www.cetv-net.com/

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