SEGMENT DATA

We manage our business on a divisional basis, with three reportable segments: Broadcast, Media Pro Entertainment and New Media. The business segments reflect how CME Ltd.’s operations are managed by segment managers, how operating performance within the Company is evaluated by senior management and the structure of our internal financial reporting. Supplemental geographic information on the performance of our Broadcast segment is provided due to the significance of our broadcast operations to CME Ltd. Management believes this information is useful to users of the financial statements.

Our Broadcast segment generates revenues from the sale of advertising and sponsorship and our New Media segment generates revenues from display and video advertising, paid premium content and subscriptions. Our Media Pro Entertainment segment generates revenues through the sale of production services to independent film-makers and through the sale of broadcast and distribution rights to third parties. Media Pro Entertainment also develops, produces and distributes television and film content which is shown on our television channels. In addition, the distribution activities of Media Pro Entertainment generate revenues from the distribution of rights to film content to third party clients, from the exhibition of films in our theaters and from the sale of DVD and Blu Ray discs to wholesale and retail clients.

We evaluate the performance of our segments based on Net Revenues and OIBDA. OIBDA, which includes program rights amortization costs, is determined as operating income / (loss) before depreciation, amortization of intangible assets and impairments of assets. Items that are not allocated to our segments for purposes of evaluating their performance and therefore are not included in their OIBDA, include stock-based compensation and certain other items.

Our key performance measure of the efficiency of our segments is OIBDA margin. OIBDA margin is the ratio of OIBDA to Net Revenues.

We believe OIBDA is useful to investors because it provides a more meaningful representation of our performance as it excludes certain items that either do not impact our cash flows or the operating results of our operations. OIBDA is also used as a component in determining management bonuses. Intersegment revenues and profits have been eliminated in consolidation.

OIBDA may not be comparable to similar measures reported by other companies.

Below are tables showing our Net Revenues and OIBDA by segment for the three and six months ended June 30, 2012 and 2011.



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
Net revenues	2012			2011			2012			2011
Broadcast:
Bulgaria	$	21,970		$	26,662		$	40,898		$	45,999
Croatia	15,314			19,979			27,187			32,490
Czech Republic	66,386			82,668			118,084			140,374
Romania	36,317			47,015			67,516			81,369
Slovak Republic	23,036			29,845			41,671			48,935
Slovenia	19,314			22,799			33,778			37,318
Total Broadcast	182,337			228,968			329,134			386,485
Media Pro Entertainment	53,455			51,254			96,860			91,434
New Media	5,212			4,612			8,891			7,233
Intersegment revenues (1)	(29,782		)	(35,178		)	(56,230		)	(62,724		)
Total net revenues	$	211,222		$	249,656		$	378,655		$	422,428

(1) Reflects revenues earned by the Media Pro Entertainment segment through sales to the Broadcast segment. All other revenues are third party revenues.



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
OIBDA	2012			2011			2012			2011
Broadcast:
Bulgaria	$	3,460		$	5,768		$	2,358		$	5,930
Croatia	3,924			3,153			4,945			2,821
Czech Republic	31,375			43,846			51,569			66,514
Romania	5,179			9,297			7,074			12,746
Slovak Republic	1,990			5,737			1,533			3,231
Slovenia	5,741			8,553			8,518			11,769
Divisional operating costs	(1,187		)	(238		)	(2,637		)	(745		)
Total Broadcast	50,482			76,116			73,360			102,266
Media Pro Entertainment	5,417			761			7,088			1,485
New Media	(787		)	(489		)	(2,235		)	(2,089		)
Central	(7,031		)	(12,397		)	(15,272		)	(22,244		)
Elimination	(969		)	(1,298		)	(1,769		)	(2,479		)
Total OIBDA	$	47,112		$	62,693		$	61,172		$	76,939



Reconciliation to condensed consolidated statement of operations and comprehensive income:	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2012			2011			2012			2011
Total OIBDA	$	47,112		$	62,693		$	61,172		$	76,939
Depreciation of property, plant and equipment	(10,747		)	(15,411		)	(22,627		)	(29,695		)
Amortization of intangible assets	(12,715		)	(7,809		)	(25,198		)	(15,436		)
Operating income	23,650			39,473			13,347			31,808
Interest expense, net	(30,510		)	(37,120		)	(62,120		)	(92,031		)
Foreign currency exchange (loss) / gain, net	(40,312		)	4,106			(16,918		)	47,371
Change in fair value of derivatives	47,398			1,161			48,325			1,121
Other (expense) / income	(158		)	(90		)	51			(802		)
Credit / (provision) for income taxes	3,073			(6,718		)	6,643			(7,650		)
Net income / (loss)	$	3,141		$	812		$	(10,672	)	$	(20,183	)

We do not rely on any single major customer or group of major customers.