SEGMENT DATA

During the year ended December 31, 2012, we managed our business on a divisional basis, with three reportable segments: Broadcast, Media Pro Entertainment and New Media. These operating segments reflect how CME Ltd.’s operations were managed by segment managers, how operating performance within the Company was 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 primarily 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, OIBDA and total assets by segment for the years ended December 31, 2012, 2011 and 2010 for consolidated statements of operations and comprehensive income data and as at December 31, 2012 and 2011 for consolidated balance sheet data:



	For The Years Ending December 31,
Net revenues	2012			2011			2010
Broadcast:
Bulgaria	$	83,027		$	93,732		$	61,753
Croatia	54,618			61,502			51,350
Czech Republic	241,034			285,865			265,018
Romania	134,029			159,387			157,416
Slovak Republic	88,853			101,973			90,391
Slovenia	63,794			72,519			64,799
Total Broadcast	665,355			774,978			690,727
Media Pro Entertainment	205,064			187,224			140,797
New Media	18,690			15,764			11,193
Intersegment revenues⁽¹⁾	(117,024		)	(113,184		)	(105,583		)
Total net revenues	$	772,085		$	864,782		$	737,134

(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 Years Ending December 31,
OIBDA	2012			2011			2010
Broadcast:
Bulgaria	$	13,857		$	12,897		$	(2,071	)
Croatia	5,892			4,659			2,368
Czech Republic	101,677			140,386			122,818
Romania	10,156			25,939			25,997
Slovak Republic	6,535			9,968			(1,001		)
Slovenia	14,213			19,602			18,427
Divisional operating costs	(4,601		)	(2,361		)	(2,123		)
Total Broadcast	147,729			211,090			164,415
Media Pro Entertainment	15,912			3,996			(3,005		)
New Media	(4,225		)	(2,558		)	(6,542		)
Central	(27,531		)	(41,851		)	(44,062		)
Elimination	(6,463		)	(3,675		)	(3,483		)
Total OIBDA	$	125,422		$	167,002		107,323



Reconciliation to consolidated statements of operations and comprehensive income:	For The Years Ending December 31,
	2012			2011			2010
Total OIBDA	$	125,422		$	167,002		$	107,323
Depreciation of property, plant and equipment	(44,498		)	(56,581		)	(58,062		)
Amortization of intangible assets	(46,627		)	(34,881		)	(25,987		)
Impairment charge	(522,490		)	(68,748		)	(397		)
Operating (loss) / income	(488,193		)	6,792			22,877
Interest expense, net	(127,189		)	(158,704		)	(131,267		)
Foreign currency exchange gain / (loss), net	4,922			(31,124		)	(5,030		)
Change in fair value of derivatives	49,027			7,281			1,164
Other income	901			1			357
Credit / (provision) for income taxes	14,139			(3,850		)	(5,025		)
Net loss from continuing operations	$	(546,393	)	$	(179,604	)	$	(116,924	)



Total assets⁽¹⁾:	December 31, 2012			December 31, 2011

Broadcast	$	1,896,894		$	2,362,143
New Media	8,071			11,206
Media Pro Entertainment	225,850			221,601
Total Operating Segments	2,130,815			2,594,950
Corporate	103,982			100,115
Elimination	(60,082		)	(13,296		)
Total	$	2,174,715		$	2,681,769

(1) Segment assets exclude any intercompany investments.



Capital Expenditures:	For The Years Ending December 31,
	2012	2011	2010
Broadcast	22,599	23,663	32,353
New Media	2,794	1,433	2,404
Media Pro Entertainment	4,319	6,500	11,200
Total Operating Segments	29,712	31,596	45,957
Corporate	3,020	2,596	30
Total	32,732	34,192	45,987

Long-lived assets and net revenues in different geographical areas are as follows:



Long-lived assets⁽¹⁾:	December 31, 2012		December 31, 2011

Bulgaria	$	13,796	$	13,830
Croatia	7,267		7,684
Czech Republic	51,673		54,759
Romania	84,505		90,270
Slovak Republic	21,315		25,608
Slovenia	23,146		23,115
	201,702		215,266
Corporate	5,004		2,101
Total long-lived assets	$	206,706	$	217,367

(1) Reflects property, plant and equipment.



Net revenues:	For The Years Ending December 31,
	2012		2011		2010

Bulgaria	85,326		95,663		62,248
Croatia	59,299		63,674		52,970
Czech Republic	279,030		313,947		269,774
Romania	195,607		216,323		195,462
Slovak Republic	96,174		105,091		95,241
Slovenia	68,895		76,512		67,674
	784,331		871,210		743,369
Eliminations	(12,246	)	(6,428	)	(6,235	)
Total net revenues	772,085		864,782		737,134

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

From January 1, 2013, the Broadcast, Media Pro Entertainment and New Media operating segments have been reorganized to streamline central resources and create six new operating segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. Operating our businesses through these geographic segments will enable us to better execute our strategy of distributing our content on multiple distribution platforms and devices in a number of windows in each market. As a result, from January 1, 2013 we will change our segment reporting to reflect the way the businesses are now managed and presented in results reviewed by the chief operating decision maker when allocating resources and assessing performance.