Central European Media Enterprises (CETV) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $21.09 million, or $ 0.06 a share in the quarter, against a net loss of $11.43 million, or $0.11 a share in the last year period. Revenue during the quarter grew 5.91 percent to $207.10 million from $195.55 million in the previous year period. Gross margin for the quarter expanded 59 basis points over the previous year period to 91.34 percent. Total expenses were 75.11 percent of quarterly revenues, down from 76.21 percent for the same period last year. This has led to an improvement of 110 basis points in operating margin to 24.89 percent.
Operating income for the quarter was $51.55 million, compared with $46.53 million in the previous year period.
Michael Del Nin, co-chief executive officer, commented: "We ended the year on a high note, with the biggest quarterly OIBDA result the Company has seen in five years, driving our highest fourth quarter OIBDA margin in almost a decade. Our full year results exceeded our most recent guidance, and in just three years we have grown OIBDA by almost US$ 200 million even with significant FX headwinds. This reflects significant progress in executing our strategy, and positions the company for continued growth in 2017 and beyond."
Operating cash flow drops significantlyCentral European Media Enterprises has generated cash of $33.92 million from operating activities during the year, down 60.51 percent or $51.96 million, when compared with the last year. The company has spent $29.36 million cash to meet investing activities during the year as against cash outgo of $30.43 million in the last year.
The company has spent $22.74 million cash to carry out financing activities during the year as against cash outgo of $28.91 million in the last year period.
Cash and cash equivalents stood at $43.46 million as on Dec. 31, 2016, down 29.54 percent or $18.22 million from $61.68 million on Dec. 31, 2015.
Working capital declines
Central European Media Enterprises has witnessed a decline in the working capital over the last year. It stood at $168.86 million as at Dec. 31, 2016, down 20.34 percent or $43.12 million from $211.98 million on Dec. 31, 2015. Current ratio was at 1.98 as on Dec. 31, 2016, down from 2.45 on Dec. 31, 2015.
Debt moves up
Central European Media Enterprises has witnessed an increase in total debt over the last one year. It stood at $1,003.52 million as on Dec. 31, 2016, up 10.32 percent or $93.85 million from $909.68 million on Dec. 31, 2015. Total debt was 72.16 percent of total assets as on Dec. 31, 2016, compared with 62.56 percent on Dec. 31, 2015. Interest coverage ratio improved to 1.99 for the quarter from 1.02 for the same period last year.
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