Central European Media Enterprises Ltd. (CETV) saw its loss narrow to $11.06 million, or $0.09 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $40.44 million, or $0.31 a share.
Revenue during the quarter grew 4.65 percent to $135 million from $129 million in the previous year period. Gross margin for the quarter expanded 333 basis points over the previous year period to 27.54 percent. Total expenses were 90.91 percent of quarterly revenues, down from 93.98 percent for the same period last year. This has led to an improvement of 307 basis points in operating margin to 9.09 percent.
Operating income for the quarter was $12.27 million, compared with $7.76 million in the previous year period.
Michael Del Nin, co-chief executive officer, commented: "We're thrilled with the way the year has started. These great financial results, combined with the recent transaction to lower the cost of all of our outstanding debt, have made the first quarter one of significant progress and achievement, causing us to be very optimistic about the rest of 2017. We feel confident that we are on track for yet another year of strong earnings growth and significant deleveraging."
Operating cash flow improves significantly
Central European Media Enterprises Ltd. has generated cash of $54.95 million from operating activities during the quarter, up 38.56 percent or $15.29 million, when compared with the last year period.
The company has spent $7.60 million cash to meet investing activities during the quarter as against cash outgo of $6.08 million in the last year period.
The company has spent $0.09 million cash to carry out financing activities during the quarter as against cash outgo of $0.68 million in the last year period.
Working capital declines
Central European Media Enterprises Ltd. has witnessed a decline in the working capital over the last year. It stood at $163.55 million as at Mar. 31, 2017, down 7.94 percent or $14.11 million from $177.66 million on Mar. 31, 2016. Current ratio was at 1.84 as on Mar. 31, 2017, down from 1.95 on Mar. 31, 2016.
Days sales outstanding went down to 56 days for the quarter compared with 109 days for the same period last year.
Debt moves up
Central European Media Enterprises Ltd. has witnessed an increase in total debt over the last one year. It stood at $1,018.30 million as on Mar. 31, 2017, up 7.54 percent or $71.42 million from $946.89 million on Mar. 31, 2016. Total debt was 71.70 percent of total assets as on Mar. 31, 2017, compared with 63.35 percent on Mar. 31, 2016. Interest coverage ratio improved to 0.52 for the quarter from 0.16 for the same period last year.
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