Central European Media Enterprises Ltd. (NASDAQ:CETV) Q2 2019 Earnings Conference Call - Final Transcript

Jul 23, 2019 • 09:00 am ET


Central European Media Enterprises Ltd. (NASDAQ:CETV) Q2 2019 Earnings Conference Call - Final Transcript


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Hello, my name is Maruyama, and I will be your conference operator today. At this time, I would like to welcome everyone to the Central European Media Enterprises Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded, today, July 23, 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, Maruyama. Good afternoon, and good morning everyone, and welcome to CME's second 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 presentation that we will refer to during the prepaid remarks. On the call today, are Michael Del Nin and Christoph Mainusch, the 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, and 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 19 to our financial statements in the Form 10-Q.

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

Michael Del Nin

Thanks, Mark, and thanks to everyone for joining us today. As we passed the halfway point of 2019, we are pleased to report yet another quarter of exceptional results, that once again exceeded our expectations and demonstrate the extraordinary growth potential of our businesses. It was a quarter filled with highlights. At constant rate, our biggest business in the Czech Republic continued its impressive run, reporting double-digit growth in the quarter for both TV ad revenues and carriage and subscription fees. And recording the highest level of H1 revenue growth in five years. Romania returns with solid growth after the first quarter, was impacted by the introduction of new taxes on certain industry groups. And this improved performance help drive Q2 margins to over 50%. All of our country operations enjoyed an improvement in profitability and margins in Slovakia more than doubled over the corresponding period last year. As TV ad spending was strong and carriage fees and subscription revenues posted another quarter of double digit increases.

Overall, our top line improved 8% at constant rates, representing the highest level of second quarter growth