Central European Media Enterprises Ltd. (NASDAQ:CETV) Q4 2018 Earnings Conference Call - Final Transcript

Feb 06, 2019 • 09:00 am ET


Central European Media Enterprises Ltd. (NASDAQ:CETV) Q4 2018 Earnings Conference Call - Final Transcript


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Hello, my name is Christa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Central European Media Enterprises Full Year and Fourth Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. (Operator Instructions). As a reminder, this conference call is being recorded today, February 6, 2019.

It is now my pleasure to turn the floor over to Mark Kobal, Head of Investor Relations at CME, who will be our moderator today. Mr. Kobal, you may begin your conference.

Mark Kobal

Thank you, Christa. Good afternoon and good morning, everyone and welcome to CME's full year and fourth quarter 2018 earnings conference call. We issued our earnings press release earlier today, a copy of which is available on our website at cme.net along with a brief presentation that we will refer to during this call.

On the call today are Michael Del Nin and Christoph Mainusch, Co-Chief Executive Officers at CME; David Sturgeon, Chief Financial Officer; and Daniel Penn, General Counsel.

Our presentation today will contain forward-looking statements. Actual results may vary materially from those expressed or implied due to various factors. Important factors that contribute to such risks include, but are not limited to, the risk factors and other cautionary statements in our SEC filings, including the Form 10-K filed earlier today. Forward-looking statements speak only as of the date, and we undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

During this call, we will also refer to certain financial information that is not in US GAAP. A description of these non-GAAP financial measures as well as reconciliations to the most comparable GAAP measures is available on our website in the appendix to the earnings call presentation. Additional information may also be found in Note 20 to our financial statements in the Form 10-K.

Lastly, we completed the sale of our Croatian operations in 2018 and that business is presented as discontinued operations for all periods. The agreement to sell our operations in Slovenia was terminated, so those are not presented as held for sale and our discussion today covers our continuing operations in all five operating segments.

And now I'll hand the call over to Michael and Christoph.

Michael Del Nin

Thanks, Mark and thanks to everyone joining us for this call. We have an outstanding set of operating results to discuss today. For the fifth consecutive year, we're able to announce OIBDA growth of more than 20%, continuing a lengthy streak of margin expansion that has resulted in 20 consecutive quarters of growth in trailing 12-month OIBDA. In fact, margins in our two largest segments topped 40% for the full year and the margin for the entire company reached 40% in the fourth quarter, an incredible improvement of more than 500 basis points compared to Q4 2017. And just as remarkable, cash