CTC Media: Financial Results for the First Quarter Ended March 31, 2009

CTC Media: Financial Results for the First Quarter Ended March 31, 2009

MOSCOW, May 7/PRNewswire-FirstCall/ -- CTC Media, Inc. ("CTC Media" or "the Company") (NASDAQ: CTCM), the
leading independent media company in Russia, today announced its unaudited
consolidated financial results for the first quarter ended March 31, 2009.

Three Months
Ended March 31,
(US$ 000's except per share data) 2008 2009 Change

Total operating revenues $136,746 $104,778 -23.4%


Total operating expenses (83,714) (68,195) -18.5%

OIBDA(1) 55,236 39,164 -29.1%
OIBDA margin 40.4% 37.4% -3.0%

Net income attributable to CTC Media,
Inc. stockholders 41,713 23,312 -44.1%
Diluted earnings per share $0.26 $0.15 -42.3%

FINANCIAL & OPERATING HIGHLIGHTS

- Total operating revenues down 23% year-on-year to $104.8 million

- 29% negative foreign exchange rate impact on ruble denominated
advertising revenues

- Consolidated organic operating expenses down 29% year-on-year to $58.4
million

- OIBDA of $39.2 million (Q1 2008: $55.2 million), with an OIBDA margin
of 37.4% (Q1 2008: 40.4%)

- Net income of $23.3 million (Q1 2008: $41.7 million)

- Fully diluted earnings per share of $0.15 (Q1 2008: $0.26)

Anton Kudryashov, Chief Executive Officer of CTC Media,
commented: "Our first quarter revenues included the consolidation of the
broadcasting businesses acquired in 2008 and the year-on-year development
reflected the deterioration of the advertising markets, as well as the
substantial weakening of our operating currencies against the US dollar
reporting currency. However, each of our networks increased its advertising
market shares year-on-year in the first quarter. Our organic advertising
revenues were down 10% year-on-year in ruble terms, which compares with an
estimated 20% decline in the Russian television advertising market over the
same period."

"In addition, sublicensing and own production revenues now
account for over 5% of total revenues following the growth in sales of
in-house produced series and sitcoms to other broadcasters."

"We have also managed to keep our underlying organic operating
cost base flat year-on-year in ruble terms and to substantially reduce our
programming expenses. The integration of our in-house content production
businesses has enabled us to adopt a more flexible and cost-efficient
approach to forward planning and scheduling."

"We remain cautious in our outlook, given the adverse market
conditions, but we are well-positioned to continue to outperform the Russian
television advertising market in 2009. We are also continuing to work to
optimize the cost bases of the organic and acquired businesses. We are
generating cash with a healthy net debt free financial position and low
capital investment levels."

Operating Review

Revenues(1)

Three Months
Ended March 31,
(US$ 000's ) 2008 2009 Change

Operating revenues:
CTC Network $ 97,831 $ 70,555 -27.9%
Domashny Network 15,467 10,567 -31.7%
DTV Network - 8,667
CTC Television Station Group 19,599 10,254 -47.7%
Domashny Television Station
Group 3,199 1,739 -45.6%
DTV Station Television Group - 774
CIS Group 650 2,044 214.5%
Production Group - 178
Total operating revenues $ 136,746 $ 104,778 -23.4%

Total operating revenues were down 23% year-on-year in
dollar terms and included a full quarterly contribution from Channel 31 in
Kazakhstan, as well as contributions from DTV Group in Russia and the
Company's operations in Moldova. The acquired operations added $0.7 million
of revenue in the first quarter of 2008 and $11.7 million of revenue in the
first quarter of 2009. The reported decline in revenues reflected the
substantial year-on-year depreciation of the Company's ruble operating
currency against the US dollar reporting currency, which had a negative
impact of approximately 29% on the Company's ruble denominated advertising
sales.

Organic revenue, when excluding the contribution of the acquired
businesses in 2008 and 2009, was down 32% year-on-year in dollar terms. This
reflected the year-on-year deterioration in the Russian television
advertising market, and the regional television advertising markets in
particular. However, each of the Company's networks increased its
advertising market shares year-on-year.

Share of Viewing in Target Demographics

Average Audience Shares (%)
Q1 2008 Q4 2008 Q1 2009

CTC Network (all 6-54) 11.4 12.3 11.4
Domashny Network (females
25-60) 2.9 2.8 2.6
DTV Network (current target
demographic: all 25-54) 2.3 2.3 2.2
DTV Network (target
demographic prior to 2009:
all 18+) 1.9 1.9 1.9
Channel 31 (all 6-54) 7.5 16.6 12.7

The CTC flagship channel maintained its target audience share
year-on-year and its position as the fourth most watched free-to-air channel
in Russia. The Daddy's Girls and Ranetki formats continued to drive CTC's
prime time audience share, while comedy sketch shows 6 Frames and the newly
launched Go for it! proved successful with their target audience and a wider
family audience on weekends. Following the launch of Kremlin Guards and a new
season of Ranetki, the average target audience share in March 2009 increased
to 12.5%.

Domashny's audience share declined slightly year-on-year due
to the adjustment of the channel's programming grid, in order to target a
higher proportion of younger and more affluent female viewers.

DTV has been refocused since January 2009 to target 25-54 year
old viewers, rather than the previously wider group of viewers over 18 years
old. DTV's audience share in the revised target group increased in the first
quarter of 2009 and the programming schedule again featured the successful
Marital Fiction and Silent Witness series, as well as other criminal
investigation and action formats.

The Company estimates that the previously announced change in
the audience measurement system in Russia from the beginning of 2009,
following the finding in an updated census that the relative percentage of
children in the overall population has decreased, adversely impacted CTC's
target audience share by approximately 0.7 percentage points but did not
significantly impact Domashny's or DTV's target audience shares. As stated
above, CTC successfully offset the impact and maintained its target audience
share.

Expenses

Three Months
Ended March 31,
(US$ 000's) 2008 2009 Change

Operating expenses:
Direct operating expenses $ 7,046 $ 7,347 4.3%
Selling, general &
administrative expenses 18,818 18,322 -2.6%
Amortization of programming
rights 54,423 36,883 -32.2%
Amortization of sublicensing
rights and own production
cost 1,223 3,062 150.4%
Depreciation & amortization 2,204 2,581 17.1%
Total operating expenses $ 83,714 $ 68,195 -18.5%

Total operating expenses were reduced by 19% year-on-year in dollar
terms. Organic expenses, when excluding the operations acquired since the
beginning of 2008, were reduced by 29%. The acquired operations added $1.0
million of expenses in the first quarter of 2008 and $9.8 million of expenses
in the first quarter of 2009.

The decrease in expenses reflected both the substantial year-on-year
reduction in programming amortization expenses, as well as the depreciation
of the Company's ruble operating currency against the US dollar reporting
currency. The majority of CTC Media's cost base is ruble denominated.
Approximately $20.8 million (31% of total operating expenses) was denominated
in dollars in the first quarter of 2009, compared to approximately $18.7
million (22% of total operating expenses) in the corresponding period of
2008.

Organic direct operating expenses were down 35% year-on-year in dollar
terms, while organic selling, general and administrative costs were down 15%
due to the depreciation of the ruble against the US dollar, which was
partially offset by a year-on-year increase in US dollar denominated
stock-based compensation expenses from $3.1 million to $4.3 million. Organic
programming expenses were down 37% year-on-year to represent 37% of revenues,
compared to 40% in the first quarter of 2008. This decrease in programming
expenses reflected the above mentioned currency effects, lower impairment
charges, a change in the programming mix resulting in the broadcasting of
lower cost series and shows, and the effect of a change in the Company's
amortization policy for certain types of Russian-produced programming with
effect from the beginning of 2009. The increase in sublicensing and own
production costs was consistent with the increase in sublicensing and own
production revenue, due to the growth in sales of internally produced series
and sitcoms to broadcasters in Ukraine.

Consolidated OIBDA was $39.2 million for the period (Q1 2008:
$55.2 million) and the Group OIBDA margin was 37.4% (Q1 2008: 40.4%). Group
depreciation and amortization charges increased by 17% year-on-year and
primarily reflected the consolidation of the businesses acquired since the
beginning of 2008. Consolidated operating income therefore totaled $36.6
million (Q1 2008: $53.0 million).

The Company reported net interest expense of $1.1 million in
the quarter (Q1 2008: net interest income of $3.8 million). The year-on-year
development reflected the increase in the Company's borrowing levels during
2008. All of the Company's long-term borrowings are US dollar-denominated, as
is the majority of the Company's cash deposits.

The Company's pre-tax income amounted to $31.3 million (Q1
2008: $57.9 million) in the quarter. The effective tax rate increased
slightly year-on-year to 27% (Q1 2008: 26%) due to an increase in
non-deductible expenses at the corporate level as a percentage of
consolidated income before tax and one-off income tax benefits in respect of
certain advertising expenses in the first quarter of 2008, partially offset
by changes in statutory tax rates. The Company's effective tax rate has been
positively impacted by the decrease in the statutory income tax rates in
Russia (from 24% to 20%) and Kazakhstan (from 30% to 20%) from the beginning
of 2009.

Consolidated net income attributable to CTC Media, Inc.
stockholders therefore totaled $23.3 million (Q1 2008: $41.7 million) in the
quarter and fully diluted earnings per share amounted to $0.15 (Q1 2008:
$0.26).

Cash Flow

The Company's net cash flow from operations
totaled $27.8 million (Q1 2008: $28.8 million) and reflected the net effect
of lower advertising sales and lower programming investments in the first
quarter of 2009.

Cash used in investing activities totaled
$13.0 million (Q1 2008: $58.8 million) and included $11.0 million paid in
earnouts related to the acquisitions of the Costafilm and Soho Media
production companies in April 2008. Cash used in investing activities in the
first quarter of 2008 included $55.0 million related to the acquisition of a
60% economic interest in the Channel 31 Group.

The Company's cash and cash equivalents
therefore increased to $109.3 million at the end of the period, compared to
$98.1 million at the end of 2008.

Borrowings

The Company's total borrowings and accrued
interest amounted to $91.6 million (Q1 2008: $0.2 million) at the end of the
reporting period, compared to $90.6 million at the end of 2008. The Company
therefore had a net cash position, which is defined as cash and cash
equivalents less interest bearing liabilities, of $17.7 million (Q1 2008:
$287.5 million) at the end of the reporting period, compared to a net cash
position of $7.5 million at the end of 2008.

Conference Call

The Company will host a conference call to discuss its first
quarter financial results today, Thursday, May 7, 2009, at 9:00 a.m. ET,
(5:00 p.m. Moscow time, 2:00 p.m. London time). To access the conference
call, please dial +1-718-247-0882 (US/International) or +44(0)20-7138-0845
(UK/International). The pass code for the call is 5276460. A live webcast of
the conference call will also be available via the investor relations section
of the Company's corporate web site - http://www.ctcmedia.ru/investors. The
webcast will also be archived on the Company's web site for two weeks.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are
prepared and presented in accordance with US GAAP, the Company uses the
following non-GAAP financial measures: OIBDA (on a consolidated and segment
basis) and OIBDA margin. The presentation of this financial information is
not intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial measures, please see
the accompanying financial tables included at the end of this release.

The Company uses these non-GAAP financial measures for
financial and operational decision making and as a means to evaluate
period-to-period comparisons. The Company believes that these non-GAAP
financial measures provide meaningful supplemental information regarding its
performance and liquidity by excluding certain expenses that may not be
indicative of its recurring core business operating results, meaning its
operating performance excluding certain non-cash charges. These metrics are
used by management to further its understanding of the Company's operating
performance in the ordinary, ongoing and customary course of operations. The
Company also believes that these metrics provide investors and equity
analysts with a useful basis for analyzing operating performance against
historical data and the results of comparable companies.

OIBDA and OIBDA margin. OIBDA is defined as operating income
before depreciation and amortization (exclusive of amortization of
programming rights and sublicensing rights). OIBDA margin is defined as OIBDA
divided by total operating revenues. The most directly comparable GAAP
measures to the non-GAAP measures of OIBDA and OIBDA margin are operating
income and operating income margin, respectively. Unlike operating income,
OIBDA excludes depreciation and amortization, other than amortization of
programming rights and sublicensing rights. The purchase of programming
rights is the Company's most significant expenditure that enables it to
generate revenues and OIBDA includes the impact of the amortization of these
rights. Expenditures for capital items such as property, plant and equipment
have a materially less significant impact on the Company's ability to
generate revenues. For this reason, the Company excludes the related
depreciation expense for these items from OIBDA. Moreover, a significant
portion of its intangible assets were acquired in business acquisitions. The
amortization of intangible assets is therefore also excluded from OIBDA.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia. It
owns and operates the CTC television network, with its signal carried by more
than 350 affiliate stations, including 20 owned-and-operated stations; the
Domashny television network, with its signal carried by over 250 affiliate
stations, including 12 owned-and-operated stations; and the DTV television
network, with its signal carried by affiliate stations including five
owned-and-operated stations. CTC Media owns two TV content production
companies, Costafilm and Soho Media, and operates Channel 31 in Kazakhstan
and TV companies in Uzbekistan and Moldova. The company's common stock is
traded on The NASDAQ Global Select Market under the symbol "CTCM". For more
information on CTC Media, please visit www.ctcmedia.ru.

Caution Concerning Forward Looking Statements

Certain statements in this press release that are not based on
historical information are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, which include, among other things, the impact the current
unfavorable macroeconomic outlook in Russia may have on the size of the
Russian television advertising market in 2009 and the split of advertising
sales between the national and local markets, and the impact that the recent
change in the Russian advertising measurement system may have on the future
audience share of CTC Network, reflect the Company's current expectations
concerning future results and events. These forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of CTC Media to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. The potential risks
and uncertainties that could cause actual future results to differ from those
expressed by forward-looking statements include, among others, continued
depreciation of the value of the Russian ruble compared to the US dollar,
changes in the size of the Russian television advertising market,
particularly in light of the current economic instability in Russia and
globally; the Company's ability to deliver audience share, particularly in
primetime, to its advertisers; free-to-air television remaining a significant
advertising forum in Russia; the Company's reliance on a single television
advertising sales house for substantially all of its revenues; and
restrictions on foreign involvement in the Russian television business. These
and other risks are described in the "Risk Factors" section of CTC Media's
annual report on Form 10-K filed with the SEC on February 27, 2009. Other
unknown or unpredictable factors could have material adverse effects on CTC
Media's future results, performance or achievements. In light of these risks,
uncertainties, assumptions and factors, the forward-looking events discussed
herein may not occur. You are cautioned not to place undue reliance on these
forward-looking statements. CTC Media does not undertake any obligation to
publicly update or revise any forward-looking statements because of new
information, future events or otherwise.

CTC MEDIA, INC, AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME (LOSS)

(in thousands of US dollars, except share and per share data)

Three months ended March 31,
2008 2009
REVENUES:
Advertising $ 135,056 $ 99,075
Sublicensing and own production
revenue 1,078 4,875
Other revenue 612 828
Total operating revenues 136,746 104,778
EXPENSES:
Direct operating expenses
(exclusive of amortization of
programming rights and
sublicensing rights and own
production cost, shown below,
exclusive of depreciation and
amortization of $1,419 and $2,051
for the three months ended March
31, 2008 and 2009 respectively;
and inclusive of stock-based
compensation of $213 and $213 for
the three months ended March 31,
2008 and 2009, respectively) (7,046) (7,347)
Selling, general and
administrative expenses
(exclusive of depreciation and
amortization of $786 and $530 for
the three months ended March 31,
2008 and 2009, respectively;
inclusive of stock-based
compensation of $3,146 and $4,077
for the three months ended March
31, 2008 and 2009, respectively) (18,818) (18,322)
Amortization of programming
rights (54,423) (36,883)
Amortization of sublicensing
rights and own production cost (1,223) (3,062)
Depreciation and amortization
(exclusive of amortization of
programming rights and
sublicensing rights) (2,204) (2,581)
Total operating expenses (83,714) (68,195)
OPERATING INCOME 53,032 36,583
FOREIGN CURRENCY GAIN (LOSS) 678 (4,033)
INTEREST INCOME 3,792 1,060
INTEREST EXPENSE (6) (2,154)
OTHER NON-OPERATING INCOME
(LOSS), net 85 (220)
EQUITY IN INCOME OF INVESTEE
COMPANIES 293 77
Income before income tax 57,874 31,313
INCOME TAX EXPENSE (15,090) (8,499)
CONSOLIDATED NET INCOME 42,784 22,814
LESS: (INCOME) LOSSES
ATTRIBUTABLE TO NONCONTROLLING
INTERESTS (1,071) 498
NET INCOME ATTRIBUTABLE TO CTC
MEDIA, INC. STOCKHOLDERS $ 41,713 $ 23,312
Net income per share attributable
to CTC Media, Inc. stockholders -
basic $ 0.27 $ 0.15
Net income per share attributable
to CTC Media, Inc. common
stockholders - diluted $ 0.26 $ 0.15
Weighted average common shares
outstanding - basic 152,124,975 152,155,213
Weighted average common shares
outstanding - diluted 159,227,810 155,799,555

CTC MEDIA, INC, AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of US dollars)

Three months ended March 31,
2008 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income $42,784 $22,814
Adjustments to reconcile net income
to net cash provided by
operating activities:

Deferred tax benefit (4,594) (981)
Depreciation and amortization 2,204 2,581
Amortization of programming rights 54,423 36,883
Amortization of sublicensing rights and
own production cost 1,223 3,062
Stock based compensation expense 3,359 4,290
Equity in income of unconsolidated
investees (293) (77)
Foreign currency (gains) losses (678) 4,033

Changes in operating assets and liabilities:

Trade accounts receivable (12,925) (240)
Prepayments (434) (1,698)
Other assets (5,836) 1,292
Accounts payable and accrued liabilities 8,636 2,095
Deferred revenue 702 (3,912)
Other liabilities 9,521 (7,876)
Dividends received from equity investees - 261
Acquisition of programming and
sublicensing rights (69,333) (34,712)
Net cash provided by operating activities 28,759 27,815

CASH FLOWS FROM INVESTING ACTIVITIES: -

Acquisitions of property and equipment (1,272) (856)
Acquisitions of intangibles (2,388) 0
Acquisitions of businesses, net of
cash acquired (55,032) (12,145)
Other (77) -
Net cash used in investing activities (58,769) (13,001)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuances of common stock 1,283 -
Decrease in restricted cash 5 65
Dividends paid to non-controlling interest (18) (23)
Net cash provided by financing activities 1,270 42

EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (3,565) 9,419
Net increase (decrease) in cash and
cash equivalents (19,320) 11,291
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 307,073 98,055
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 287,753 $ 109,346

CTC MEDIA, INC, AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of US dollars, except share and per share data)

December 31, March 31,
2008 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 98,055 $ 109,346
Trade accounts receivable, net of allowance for
doubtful accounts (December 31, 2008 - $1,355;
March 31, 2009 - $1,166) 33,670 26,595
Taxes reclaimable 8,171 8,766
Prepayments 29,005 20,853
Programming rights, net 71,976 61,285
Deferred tax assets 14,166 15,027
Other current assets 7,720 9,880
TOTAL CURRENT ASSETS 262,763 251,752
RESTRICTED CASH 210 145
PROPERTY AND EQUIPMENT, net 22,722 19,482
INTANGIBLE ASSETS, net:
Broadcasting licenses 166,173 144,408
Cable network connection 25,205 22,064
Trade names 17,587 15,110
Network affiliation agreements 9,214 7,491
Other intangible assets 1,244 1,208
Net intangible assets 219,423 190,281
GOODWILL 223,027 192,967
PROGRAMMING RIGHTS, net 48,031 51,712
SUBLICENSING RIGHTS, net 1,221 352
INVESTMENTS IN AND ADVANCES TO INVESTEES 5,311 4,313
PREPAYMENTS 6,238 2,054
DEFERRED TAX ASSETS 15,154 12,753
OTHER NON-CURRENT ASSETS 2,729 2,777
TOTAL ASSETS $ 806,829 $ 728,588
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 41,025 $ 46,556
Accrued liabilities 41,573 27,678
Taxes payable 30,154 15,206
Short-term loans and interest accrued 62,165 63,220
Deferred revenue 14,683 5,718
Deferred tax liability 2,778 2,747
TOTAL CURRENT LIABILITIES 192,378 161,125
LONG-TERM LOANS 28,438 28,414
DEFERRED TAX LIABILITY 38,943 33,981
COMMITMENTS AND CONTINGENCIES (Note 9) - -
STOCKHOLDERS' EQUITY:
Common stock; $0.01 par value; shares authorized
175,772,173;
shares issued and outstanding 152,155,213) 1,522 1,522
Additional paid-in capital 365,362 369,652
Retained earnings 232,321 255,633
Accumulated other comprehensive loss (54,615) (123,111)
Noncontrolling interest 2,481 1,372
TOTAL STOCKHOLDERS' EQUITY 547,070 505,068
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 806,829 $ 728,588

CTC MEDIA, INC. AND SUBSIDIARIES

UNAUDITED SEGMENT FINANCIAL INFORMATION

(in thousands of US dollars)

Three months ended March 31, 2008
Operating
revenue
from Operating Depreciation Capital
external Intersegment income/ and expend-
customers revenue (loss) amortization OIBDA itures

CTC Network $97,831 $198 $45,536 $(244) $45,780 $(767)
Domashny
Network 15,467 - 4,534 (172) 4,706 (56)
DTV Network - - - - - -
CTC
Television
Station
Group 19,599 415 10,632 (501) 11,133 (1,909)
Domashny
Television
Station
Group 3,199 250 (57) (625) 568 (854)
DTV
Television
Station
Group - - - - - -
CIS Group 650 - (368) (131) (237) -
Production
Group - - - - - -
Corporate
Office - - (7,203) (531) (6,672) (74)
Business
segment
results $136,746 $863 $53,074 $(2,204) $55,278 $(3,660)
Eliminations
and other (863) (42) - (42)
Consolidated
results $136,746 $- $53,032 $(2,204) $55,236 $(3,660)

Three months ended March 31, 2008
Operating
revenue
from Operating Depreciation Capital
external Intersegment income/ and expend-
customers revenue (loss) amortization OIBDA itures

CTC Network $70,555 $783 $34,302 $(131) $34,433 $(64)
Domashny
Network 10,567 3 3,383 (113) 3,496 (6)
DTV Network 8,667 - 3,721 (592) 4,313 (297)
CTC
Television
Station
Group 10,254 277 5,270 (415) 5,685 (274)
Domashny
Television
Station
Group 1,739 294 77 (311) 388 (52)
DTV
Television
Station
Group 774 28 (1,193) (720) (473) -
CIS Group 2,044 - (1,362) (222) (1,140) (161)
Production
Group 178 5,878 263 (12) 275 (17)
Corporate
Office - - (7,856) (65) (7,791) (11)
Business
segment
results $104,778 $7,263 $36,605 $(2,581) $39,186 $(56)
Eliminations
and other - (7,263) (22) (0) (24) -
Consolidated
results $104,778 $- $36,583 $(2,581) $39,162 $(56)

CTC MEDIA, INC. AND SUBSIDIARIES

RECONCILIATION OF CONSOLIDATED OIBDA TO

CONSOLIDATED OPERATING INCOME

Three months ended
March 31,
2008 2009

In thousands of US
dollars

OIBDA $55,236 $39,164
Depreciation and amortization (exclusive
of amortization of programming rights,
sublicensing rights and own production
cost) (2,204) (2,581)
Operating income $53,032 $36,583

CTC MEDIA, INC. AND SUBSIDIARIES

RECONCILIATION OF CONSOLIDATED OIBDA MARGIN TO

CONSOLIDATED OPERATING INCOME MARGIN

Three months ended
March 31,
2008 2009

OIBDA margin 40.4% 37.4%
Depreciation and amortization (exclusive
of amortization of programming rights,
sublicensing rights and own production
cost) as a percentage of total operating
revenues -1.6% -2.5%
Operating income margin 38.8% 34.9%

CTC MEDIA, INC. AND SUBSIDIARIES

RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME

Three Months Ended March 31, 2008

Depreciation and
amortization
(exclusive of
amortization of
OIBDA programming rights, Operating income
sublicensing rights
and own production
(US$ 000's) cost)

CTC Network $45,780 $(244) $45,536
Domashny Network 4,706 (172) 4,534
DTV Network - - -
CTC Television
Station Group 11,133 (501) 10,632
Domashny Television
Station Group 568 (625) (57)
DTV Television
Station Group - - -
CIS Group (237) (131) (368)
Production Group - - -
Corporate (6,672) (531) (7,203)

Business Segment
Results $55,278 $(2,204) $53,074
Eliminations and
Other (42) - (42)
Consolidated Results $55,236 $(2,204) $53,032

Three Months Ended March 31, 2009

Depreciation and
amortization
(exclusive of
amortization of
OIBDA programming rights, Operating income
sublicensing rights
and own production
(US$ 000's) cost)

CTC Network $34,433 $(131) $34,302
Domashny Network 3,496 (113) 3,383
DTV Network 4,313 (592) 3,721
CTC Television 5,685 (415) 5,270
Station Group
Domashny Television 388 (311) 77
Station Group
DTV Television (473) (720) (1,193)
Station Group
CIS Group (1,140) (222) (1,362)
Production Group 275 (12) 263
Corporate (7,791) (65) (7,856)

Business Segment $39,186 $(2,581) $36,605
Results
Eliminations and (24) - (24)
Other
Consolidated Results $39,162 $(2,581) $36,583

---------------------------------

([1]) OIBDA is defined as operating income before depreciation and
amortization (exclusive of amortization of programming rights and
sublicensing rights). OIBDA margin is defined as OIBDA divided by total
operating revenues. Both OIBDA and OIBDA margin are non-GAAP financial
measures. Please see the accompanying financial tables at the end of this
release for a reconciliation of OIBDA to operating income and OIBDA margin to
operating income margin.

(1) Segment revenues are shown from external customers only,
net of intercompany revenues of $0.8 million in the first quarter of 2008 and
$7.3 million in the first quarter of 2009, most of which reated to Production
Group revenues ($5.9 million) eliminated in consolidation.

For further information, please visit http://www.ctcmedia.ru or contact:

CTC Media, Inc.

Investor Relations
Ekaterina Ostrova or
Ekaterina Tsukanova
Tel: +7-495-783-3650
ir@ctcmedia.ru

Media Relations
Ekaterina Osadchaya
Angelika Larionova
Tel: +7-495-785-6333
pr@ctcmedia.ru

Source: CTC Media, Inc

CTC Media, Inc.. Investor Relations: Ekaterina Ostrova or Ekaterina Tsukanova, Tel: +7-495-783-3650, ir@ctcmedia.ru. Media Relations: Ekaterina Osadchaya, Angelika Larionova, Tel: +7-495-785-6333, pr@ctcmedia.ru

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