Central European Media Enterprises Ltd. (NASDAQ:CETV) Q1 2019 Earnings Conference Call - Final Transcript
Apr 30, 2019 • 09:00 am ET
Hello, my name is Natalie, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Central European Media Enterprise First Quarter 2019 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, April 30, 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.
Thank you, Natalie. Good afternoon and good morning everyone and welcome to CME's first quarter 2019 earnings conference call. We issued our earnings press release earlier today, a copy of which is available on our website cme.net along with the Group presentation that we will refer to during this call. On the call today are Michael Del Nin and Christoph Mainusch, Co-Chief Executive Officers of 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-Q 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. Description of these non-cash financial measures as well as reconciliations to the most comfortable GAAP measures is available on our website in the appendix to the earnings call presentation. Additional information may also be found in Note 19 to our financial statements in the Form 10-Q.
Now I'll hand the call over to Michael and Christoph.
Michael Del Nin
Thanks, Mark, and thanks to everyone for joining us today. There is a lot to talk about on today's call, but the headline is simply this. The year has gotten off to an outstanding start. These results exceed the expectations that we had when we gave guidance on our last earnings call and reflect higher levels of profitability, stronger margins and greater cash flow generation in just about any other Q1 in the history of the Company.
Top line results were affected by the weakening of our currencies against the dollar since Q1 of last year. As a result, overall net revenues declined by 7% at actual rates. But excluding the impact of FX, our top line grew 2% to $147 million. This is a solid result, especially given the impact of sector taxes introduced in Romania and the phasing of advertising spending around Easter this year. As expected, the later timing of that holiday in 2019 shifted spending into Q2 across our markets and held