Central European Media Enterprises Ltd. (NASDAQ:CETV) Q3 2019 Earnings Conference Call - Final Transcript
Oct 17, 2019 • 09:00 am ET
Hello. My name is Kenzie. I will be your conference operator today. At this time, I would like to welcome everyone to the Central European Media Enterprises Third Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded today October 17, 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, Kenzie. Good afternoon and good morning, everyone, and welcome to CME's Third Quarter 2019 Earnings Conference Call. The earnings press release we issued today is available on our website, cme.net, along with the presentation that we will refer to during the prepared remarks.
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. 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 19 to our financial statements in the Form 10-Q.
And now I will hand over the call over to Michael and Christoph.
Michael Del Nin
Thanks, Mark, and thanks to everyone for joining us on the call and webcast. As we head into the final months of 2019, we have an outstanding set of results to report today, marking our 24th consecutive quarter of improved profitability.
Q3 saw our businesses continue to generate top line growth and increasing amounts of cash, allowing us to repay additional debt and driving further deleveraging. In fact, it was a quarter marked by several important highlights. Although typically a low season for advertising spending, the ad markets remained generally robust across the countries in which we operate. Our Czech and Slovak operations saw another quarter of significant growth continuing their impressive run, while Romania continued its recovery with another quarter of improving top line performance driven by stronger market conditions there. But not all growth was related to advertising. We also saw another quarter of double-digit increases in carriage fees and subscription revenues led by a 24% improvement in Slovenia, which contributed to a remarkable 10 percentage point expansion in that country's OIBDA margin.
Altogether, net revenue increased 7% at constant rates. And even after considering the negative