OREANDA-NEWS. August 11, 2011. CTC Media, Inc. (“CTC Media” or “the Company”) (NASDAQ: CTCM), Russia’s leading independent media company, announced its unaudited consolidated financial results for the second quarter ended June 30, 2011, reported the press-centre of CTC Media.

Q2 FINANCIAL HIGHLIGHTS

Total revenues up 28% year-on-year in ruble terms on a comparable basis to USD 204.5 million

Russian advertising revenues up 30% year-on-year in ruble terms on a comparable basis

OIBDA up 82% year-on-year in US dollar terms to USD 66.0 million, with an increased OIBDA margin of 32.3%

Fully diluted earnings per share up 85% year-on-year to USD 0.24 (Q2 2010: USD 0.13)

Net cash position of USD 129.5 million at the end of the period

The Board of Directors currently intends to pay increased aggregate cash dividends of USD 130 million in 2011 and has declared a cash dividend in the third quarter of USD 0.22 per share (or approximately USD 35 million in the aggregate) to be paid on or about October 30, 2011 to shareholders of record as of September 1, 2011.

Reiterated full year outlook of an approximate 20% year-on-year increase in total operating revenues in ruble terms on a comparable basis for the full year; an OIBDA margin of between 34% and 36% (equivalent to between 38% and 40% under the terms of the pre-existing sales structure); and capital expenditure (excluding acquisitions) of up to USD 25 million in 2011

OPERATING HIGHLIGHTS
Combined Russian national inventory 100% sold-out for Q2 and over 90% sold-out for the full year

Launch of CTC-international channel on Time Warner Cable and Russian Media Group platforms in May 2011

Launch of new digital broadcasting complex in Moscow in July 2011

Establishment of new unified content production company ‘Story First Production’ to merge Costafilm and Soho Media platforms under a single subsidiary

Videomore.ru received an average of 120,000 unique visitors per day in Q2

Videomore.ru is now available on iPhone, Android and iOS platforms, D-link’s Boxee digital media player, and Facebook and Vkontakte social networks

Channel 31 in Kazakhstan recorded an all-time high quarterly average target audience share of 15.8%

Acquisition of 7 regional television stations in 6 Russian cities in H1 primarily to improve technical reach of DTV and Domashny Networks

Anton Kudryashov, Chief Executive Officer of CTC Media, commented, “We have fully captured the growth in the Russian TV advertising market in the second quarter, with healthy demand levels and rising prices for our premium audiences. Our national Russian TV advertising market share and blended power ratio have remained stable despite the higher audience shares achieved by the smaller non free-to-air TV channels. Our Russian channels were 100% sold-out in the second quarter, and are now over 90% sold-out for the full year at significantly higher prices than in 2010.

“The Russian Spring schedule performed well while our key formats were on air, and our soon to be launched Fall schedule includes prime-time premieres across various genres including original productions, adaptations of successful international formats, and new seasons of hit series. In addition, we will refresh the DTV format with a new programming and communications platform in October. Channel 31 in Kazakhstan has performed ahead of expectations with substantially increased ratings driving a 68% year-on-year increase in CIS revenues in US dollar terms.

“The investments that we have made in our internal sales house and state-of-the-art broadcasting facility will ensure that we are well-positioned to capitalize further on the growth and development of the Russian broadcasting industry. The new play-out facility, which is the first of its kind in Russia, is able to programme and broadcast up to 21 independent channels and meet all of the Company’s broadcasting requirements from a single location. The facility’s flexible cross-platform distribution and content digitalization capabilities will also contribute to the growth of Videomore, which has already attracted 10 million unique users.”

“OIBDA was up 82% year-on-year, with an increased margin of 32.3% in the second quarter, and net income attributable to CTC Media stockholders was up 84% year-on-year.

“We reiterate our full year outlook for approximately 20% year-on-year like-for-like revenue growth in ruble terms. We also continue to expect to deliver a full year OIBDA margin of between 34% and 36%, which is equivalent to between 38% and 40% under the terms of the pre-existing sales structure. We also expect full year CAPEX, excluding acquisitions, to amount to up to USD 25 million.

“We paid out an increased quarterly cash dividend of USD 35 million in the second quarter and intend to pay further quarterly dividends for the third and fourth quarters. Our anticipated total full-year dividend payments would therefore be up year-on-year to USD 130 million, which reflects the high levels of cash generation and conversion in the business. We continue to invest in the development of our existing operations, as well as to seek and review new opportunities to expand our presence in Russia and the CIS.”