Central European Media Enterprises Ltd. Reports Results for the Three Months Ended March 31, 2019

– Net revenues decreased 7% at actual rates but increased 2% at
constant rates to US$ 146.6 million –

– Operating income increased 12% at actual rates and 23% at constant
rates to US$ 27.6 million –

– OIBDA increased 8% at actual rates and 18% at constant rates to US$
38.1 million –

HAMILTON, Bermuda–(BUSINESS WIRE)–Central European Media Enterprises Ltd. (“CME” or the “Company”)
(NASDAQ/Prague Stock Exchange – CETV) today announced financial results
for the three months ended March 31, 2019.

Operational and financial highlights:

• TV advertising revenues decreased 10% at actual rates and 2% at
  constant rates in the quarter. In the first four months of 2019, which
  normalizes the phasing of spending around Easter, TV ad revenues are
  estimated to have increased 3% at constant rates compared to the same
  period in 2018.
• Carriage fees and subscription revenues increased 4% at actual rates
  and 12% at constant rates in the first quarter.
• Costs charged in arriving at OIBDA decreased 11% at actual rates and
  3% at constant rates.
• OIBDA margin increased by 360 basis points to 26%.
• Cash generated from continuing operating activities increased 34% at
  actual rates to US$ 96.0 million.
• Unlevered free cash flow increased 33% at actual rates to US$ 94.7
  million.
• CME repaid EUR 60 million of debt from cash generated by the business,
  which together with the improvement in our operations reduced our net
  leverage ratio to 3.0x at the end of March from 3.5x at the start of
  the year.

Michael Del Nin, Co-Chief Executive Officer, commented: “The year has
gotten off to an outstanding start, exceeding our previous expectations
to such an extent that we are raising our guidance for 2019. With the
highest Q1 margin in more than a decade, an 18% improvement in
like-for-like OIBDA, and a more than 30% surge in unlevered free cash
flow, these are among the best Q1 results in the history of the company.
Furthermore, they are bolstered by around 20% growth in TV ad revenues
in our two largest markets in April, pushing year-to-date sales well
into positive territory after the first quarter was impacted by both
sector taxes in Romania and the phasing of spending related to the
timing of Easter this year.”

Christoph Mainusch, Co-Chief Executive Officer, added: “With the
successful launch of the spring season during the first quarter, our
main channel in four countries increased year-to-date audience share in
both prime time and all day. Carriage fees have transformed the
predictability and profitability of several of our businesses, with four
segments now seeing margins of more than 25% in Q1. Facing various
headwinds in the quarter, we grew our TV ad revenues in three segments,
and we increased market share in four of five countries.”

In this release we refer to several non-GAAP financial measures,
including OIBDA, OIBDA margin, free cash flow, unlevered free cash flow
and constant currency percentage movements. Please see “Non-GAAP
Financial Measures” below for additional information, including
definitions and reconciliations to US GAAP financial measures.

Consolidated results for the three months ended March 31, 2019 and 2018
were:

Teleconference and Audio Webcast Details

CME will host a teleconference and audio webcast to discuss its first
quarter results on Tuesday, April 30, 2019 at 9 a.m. New York time (2
p.m. London and 3 p.m. Prague time). The audio webcast and
teleconference will refer to presentation slides which will be available
on CME’s website at www.cme.net
prior to the call.

To access the teleconference, U.S. and international callers may dial
+1-647-689-5402 ten minutes prior to the start time and reference
conference ID 2273725. The conference call will also be audio webcasted
via www.cme.net.
It can be heard on iPads, iPhones and a range of devices supporting
Android and Windows operating systems.

A digital audio replay of the webcast will be available for two weeks
following the call at www.cme.net.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements. For all
forward-looking statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be predicted
with accuracy or are otherwise beyond our control and some of which
might not even be anticipated. Forward-looking statements reflect
our current views with respect to future events and because our business
is subject to such risks and uncertainties, actual results, our
strategic plan, our financial position, results of operations and cash
flows could differ materially from those described in or contemplated by
the forward-looking statements.

Important factors that contribute to such risks include, but are not
limited to, those factors set forth under “Risk Factors” in our
Quarterly Report on Form 10-Q for the period ended March 31, 2019 as
well as the following: the effect of changes in global and regional
economic conditions; the impact of ending the quantitative easing
program implemented by the European Central Bank; the economic,
political and monetary impacts of Brexit in our markets; the outcome of
our strategic review and its impact on our business; the impact of
changes in local tax legislation and the timing of public holidays on
advertising spending; levels of television advertising spending and the
rate of development of the advertising markets in the countries in which
we operate; our ability to refinance our existing indebtedness; the
extent to which our debt service obligations and covenants may restrict
our business; our exposure to additional tax liabilities as well as
liabilities resulting from regulatory or legal proceedings initiated
against us; our success in continuing our initiatives to diversify and
enhance our revenue streams; our ability to make cost-effective
investments in our television businesses, including investments in
programming; our ability to develop and acquire necessary programming
and attract audiences; and changes in the political and regulatory
environments where we operate and in the application of relevant laws
and regulations.

The foregoing review of important factors should not be construed as
exhaustive. For a more detailed description of these uncertainties and
other factors, please see the “Risk Factors” and “Forward-looking
Statements” sections in CME’s Quarterly Report on Form 10-Q for the
period ended March 31, 2019. We undertake no obligation to publicly
update or review any forward-looking statements, whether as a result of
new information, future developments or otherwise.

This press release should be read in conjunction with our Quarterly
Report on Form 10-Q for the period ended March 31, 2019, which was filed
with the Securities and Exchange Commission on April 30, 2019.

We make available free of charge on our website at www.cme.net
our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and amendments to those reports as soon as
reasonably practicable after we electronically file such material with,
or furnish it to, the Securities and Exchange Commission. Please note
that we may announce material information using SEC filings, press
releases, public conference calls, webcasts and posts to the Investors
section of our website, www.cme.net.
In the future, we will continue to use these channels to communicate
important information about CME and our operations. Information that we
post on our website could be deemed material. Therefore, we encourage
investors, the media, our customers and others interested in CME to
review the information we post at www.cme.net.

CME is a media and entertainment company operating leading businesses in
five Central and Eastern European markets with an aggregate population
of approximately 45 million people. CME’s operations broadcast 30
television channels in Bulgaria (bTV, bTV Cinema, bTV Comedy, bTV
Action, bTV Lady and Ring), the Czech Republic (Nova, Nova 2, Nova
Cinema, Nova Sport 1, Nova Sport 2, Nova International, Nova Action and
Nova Gold), Romania (PRO TV, PRO 2, PRO X, PRO GOLD, PRO CINEMA, PRO TV
International and PRO TV Chisinau), the Slovak Republic (TV Markíza,
Markíza International, Doma and Dajto) and Slovenia (POP TV, Kanal A,
Brio, Oto and Kino). CME is traded on the NASDAQ Global Select Market
and the Prague Stock Exchange under the ticker symbol “CETV”.

Segment Data

We manage our business on a geographical basis, with five reporting
segments: Bulgaria, the Czech Republic, Romania, the Slovak Republic and
Slovenia. These segments reflect how CME Ltd.’s operating performance is
evaluated by our chief operating decision makers, who we have identified
as our co-Chief Executive Officers, how operations are managed by
segment managers, and the structure of our internal financial reporting.

We evaluate our consolidated results and the performance of our segments
based on net revenues and OIBDA. Intersegment revenues and profits have
been eliminated in consolidation.

Below are tables showing our net revenues and OIBDA by segment for the
three months ended March 31, 2019 and 2018:

Non-GAAP Financial Measures

In this release we refer to several non-GAAP financial measures,
including OIBDA, OIBDA margin, free cash flow and unlevered free cash
flow. We believe that each of these metrics is useful to investors for
the reasons outlined below. Non-GAAP financial measures may not be
comparable to similar measures reported by other companies. Non-GAAP
financial measures should be evaluated in conjunction with, and are not
a substitute for, US GAAP financial measures.

We evaluate our consolidated results and the performance of our segments
based on net revenues and OIBDA. We believe OIBDA is useful to investors
because it provides a meaningful representation of our performance, as
it excludes certain items that do not impact either our cash flows or
the operating results of our operations. OIBDA and unlevered free cash
flow are also used as components in determining management bonuses.

OIBDA includes amortization and impairment of program rights and is
calculated as operating income / loss before depreciation, amortization
of intangible assets and impairments of assets and certain unusual or
infrequent items that are not considered by our co-Chief Executive
Officers when evaluating our performance. Our key performance measure of
the efficiency of our consolidated operations and our segments is OIBDA
margin. We define OIBDA margin as the ratio of OIBDA to net revenues.

Following a repricing of our Guarantee Fees in March 2017 and April
2018, we pay interest and related Guarantee Fees on our outstanding
indebtedness in cash. In addition to this obligation to pay Guarantee
Fees in cash, we expect to use cash generated by the business to pay
certain Guarantee Fees that were previously paid in kind. These cash
payments are all reflected in free cash flow; accordingly we believe
unlevered free cash flow, defined as free cash flow before cash payments
for interest and Guarantee Fees, best illustrates the cash generated by
our operations when comparing periods. We define free cash flow as net
cash generated from continuing operating activities less purchases of
property, plant and equipment, net of disposals of property, plant and
equipment and excluding the cash impact of certain unusual or infrequent
items that are not included in costs charged in arriving at OIBDA
because they are not considered by our co-Chief Executive Officers when
evaluating performance. For additional information regarding our
business segments, see Item 1, Note 19, “Segment Data” in our Form 10-Q.

While our reporting currency is the dollar, our consolidated revenues
and costs are divided across a range of European currencies and CME
Ltd.’s function currency is the Euro. Given the significant movement of
the currencies in the markets in which we operate against the dollar, we
believe that it is useful to provide percentage movements based on
actual percentage movements (“% Act”), which includes the effect of
foreign exchange, as well as like-for-like percentage movements (“%
Lfl”). The like-for-like percentage movement references reflect the
impact of applying the current period average exchange rates to the
prior period revenues and costs. Since the difference between
like-for-like and actual percentage movements is solely the impact of
movements in foreign exchange rates, our discussion in this release
includes constant currency percentage movements in order to highlight
those factors influencing operational performance. The incremental
impact of foreign exchange rates is presented in the tables accompanying
such analysis.

Contacts

For additional information, please visit www.cme.net
or contact:
Mark Kobal
Head of Investor Relations
Central
European Media Enterprises
+420 242 465 576
[email protected]