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 nine months ended September 30, 2012 and 2011.



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Net revenues	2012			2011			2012			2011
Broadcast:
Bulgaria	$	14,836		$	17,360		$	55,734		$	63,359
Croatia	9,009			9,959			36,196			42,449
Czech Republic	42,933			55,279			161,017			195,653
Romania	24,535			31,056			92,051			112,425
Slovak Republic	14,746			18,204			56,417			67,139
Slovenia	9,114			11,573			42,892			48,891
Total Broadcast	115,173			143,431			444,307			529,916
Media Pro Entertainment	44,759			35,141			141,619			126,575
New Media	3,780			3,246			12,671			10,479
Intersegment revenues (1)	(23,620		)	(16,346		)	(79,850		)	(79,070		)
Total net revenues	$	140,092		$	165,472		$	518,747		$	587,900

(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 September 30,						For the Nine Months Ended September 30,
OIBDA	2012			2011			2012			2011
Broadcast:
Bulgaria	$	1,035		$	(715	)	$	3,393		$	5,215
Croatia	(776		)	(1,960		)	4,169			861
Czech Republic	11,026			21,077			62,595			87,591
Romania	2,297			4,625			9,371			17,371
Slovak Republic	(3,311		)	(1,547		)	(1,778		)	1,684
Slovenia	(1,513		)	(372		)	7,005			11,397
Divisional operating costs	(719		)	(973		)	(3,356		)	(1,717		)
Total Broadcast	8,039			20,135			81,399			122,402
Media Pro Entertainment	3,415			218			10,503			1,703
New Media	(1,512		)	(1,033		)	(3,747		)	(3,122		)
Central	(3,956		)	(9,726		)	(19,228		)	(31,969		)
Elimination	(2,478		)	(696		)	(4,247		)	(3,176		)
Total OIBDA	$	3,508		$	8,898		$	64,680		$	85,838



Reconciliation to condensed consolidated statement of operations and comprehensive income:	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
Total OIBDA	$	3,508		$	8,898		$	64,680		$	85,838
Depreciation of property, plant and equipment	(11,711		)	(13,851		)	(34,338		)	(43,547		)
Amortization of intangible assets	(10,198		)	(7,957		)	(35,396		)	(23,393		)
Operating (loss) / income	(18,401		)	(12,910		)	(5,054		)	18,898
Interest expense, net	(32,279		)	(34,523		)	(94,399		)	(126,554		)
Foreign currency exchange gain / (loss), net	16,755			(45,919		)	(163		)	1,452
Change in fair value of derivatives	559			3,479			48,884			4,600
Other income / (expense)	108			33			159			(769		)
Credit / (provision) for income taxes	621			7,644			7,264			(6		)
Net loss	$	(32,637	)	$	(82,196	)	$	(43,309	)	$	(102,379	)

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

By December 31, 2012, we expect to complete changes to our management structure which were initiated to further our strategy of one content, multiple distribution, and to increase efficiencies in commercial activities. As a result, we anticipate our segment reporting will change to reflect that the first quarter of 2013 will be the first period the businesses are managed under a new structure and presented in results reviewed by the chief operating decision maker to allocate resources and assess performance.