OREANDA-NEWS. August 09, 2010. CTC Media, Inc. (“CTC Media” or “the Company”) (NASDAQ: CTCM), Russia’s leading independent media company, today announced its unaudited consolidated financial results for the second quarter, ended June 30, 2010, reported the press-centre of CTC Media.

SECOND QUARTER FINANCIAL HIGHLIGHTS
Total revenues of USD130.5 million – up 7.6% year-on-year in ruble terms

Russian advertising revenues up 8.4% year-on-year in ruble terms

OIBDA of USD 36.2 million with an OIBDA margin of 27.7%

Fully diluted earnings per share of USD 0.13 (Q2 2009: USD 0.19)

Net cash position of USD 131.4 million at end of the period

USD 0.065 per share cash dividend to be paid on September 30, 2010 to stockholders of record as of September 1, 2010

SECOND QUARTER OPERATING HIGHLIGHTS
Target audience share for Domashny Network up year-on-year from 2.9% to 3.5% in Q2

 Target audience share for CTC Network up year-on-year from 11.9% to 12.1% in H1

Average combined 4+ audience share of all Russian networks of 12.7% in Q2

Combined Russian national inventory fully sold out in Q2

Target audience share for Channel 31 in Kazakhstan up year-on-year from 11.7% to 12.2% in Q2

Launch of CTC-International channel in Israel in June

Anton Kudryashov, Chief Executive Officer of CTC Media, commented: “The level of growth in the Russian TV advertising market has accelerated in the second quarter and we have captured this growth with a fully sold-out position and 8% year-on-year Russian advertising sales growth in ruble terms. Our blended power ratio has also remained high with a stable Russian TV advertising market share. Our CIS television advertising sales grew by 12% year-on-year in US dollar terms and the successful launch of CTC-International in the US at the end of last year has been followed by the recent launch of the channel in Israel.

“Our Russian channels are now almost sold out for the year and pricing levels are higher for the second half of the year and the fourth quarter in particular. The current market forecast is for the Russian TV advertising market to grow by approximately 10% for the full year in ruble terms, and we currently expect to perform in line with this level of market growth.

“We have continued to invest in our programming schedules and network coverage, with a particular emphasis on the development of our smaller channels. These investments have already resulted in significantly higher audience shares for the Domashny network. We are also investing in the development of our own internal sales house, in order to increase our control over the sales process and overall efficiency levels. We therefore expect our full year operating expenditure to grow by approximately 20% year-on-year in ruble terms, when excluding the non-recurring items in 2009, and we expect to deliver a full year total OIBDA margin of more than 35%.

“We have now reached a preliminary agreement and signed a non-binding memorandum of understanding regarding our future cooperation with our existing sales house, Video International, following the amendments to the Russian advertising law. As before, we expect any changes that we make to our advertising sales process to be value accretive for the Company.

“We remain in a strong financial position with no borrowings and have made the latest of our four intended 2010 dividend payments. In addition to our previously announced capital expenditure program, we also continue to review attractive acquisition opportunities in our target markets.”

Total operating revenues were up 15% year-on-year in the second quarter in US dollar terms, which reflected increasing demand from advertisers, the resulting 100% sellout of Russian national advertising inventory and continued healthy power ratios, as well as the strengthening of the Company’s principal operating currency (the Russian ruble) against its US dollar reporting currency. Total operating revenues were up 8% year-on-year in ruble terms in the second quarter and up 6% year-on-year for the first half of 2010. Russian advertising sales accounted for approximately 93% of total second quarter and first half year operating revenues, and were up 8% and 6% year-on-year in ruble terms for the two respective periods.

CIS Group revenues accounted for 2% of total revenues in the quarter and increased by 1% year-on-year in US dollar terms. CIS Group television advertising sales grew by 12% year-on-year in US dollar terms in the quarter following higher target audience shares and sellout ratios for Channel 31. CTC Media has decided to discontinue its joint venture operations in Uzbekistan.

Flagship CTC Network’s average target audience share was down year-on-year in the quarter, which reflected the highly competitive environment and the anticipated lower year-on-year ratings for prime time shows following particularly successful series in the earlier period. However, the year to date average target audience share was up year-on-year from 11.9% to 12.1%. The fall schedule, which will be launched in mid-August, will feature new seasons of proven formats such as Daddy’s Girls, Margosha, and Voroniny, as well as premieres of new shows including an adaptation of popular U.S. sitcom How I Met Your Mother.

Domashny’s target audience share was up significantly year-on-year and quarter-on-quarter in the second quarter to 3.5% following the strong performance of the spring schedules. Domashny was the most watched second-tier channel in Russia among its target audience of 25 to 60 year old women in the quarter.

The DTV channel reported a lower year-on-year target audience share but a stable quarter-on-quarter development as the work to strengthen the channel’s positioning continues. DTV’s fall schedule will include new seasons of established formats and premieres of locally produced shows, such as Stroybatya, a comedy prime-time series about Russian engineering troops, documentary series Road Wars and journalistic investigation program Beyond The Law.

Channel 31’s target audience share increased year-on-year from 11.7% to 12.2% and was also up quarter-on-quarter, which enabled the channel to regain its position as the second-most watched channel in Kazakhstan in the target group of all 6-54 year olds.

For more information on CTC Media, please visit: www.ctcmedia.ru.