SEGMENT DATA

We manage our business on a geographical basis, with six operating segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia, which are also our reportable segments and our main operating countries. These operating 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 our operations are managed by segment managers; and the structure of our internal financial reporting.

Our segments generate revenues primarily from the sale of advertising and sponsorship on our channels. This is supplemented by revenues from cable and satellite television service providers to carry our channels on their platforms and from revenues through the sale of distribution rights to third parties.

We evaluate the performance of our segments based on net revenues and OIBDA. OIBDA, which includes amortization and impairment of program rights, is determined as operating income / loss before depreciation, amortization of intangible assets, impairments of assets and certain unusual or infrequent items that are not considered by our chief operating decision makers when evaluating our performance. 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, total assets, capital expenditures and long-lived assets for our continuing operations by segment for the three and six months ended June 30, 2014 and 2013 for condensed consolidated statements of operations and comprehensive income data and condensed consolidated statements of cash flow data; and as at June 30, 2014 and December 31, 2013 for condensed consolidated balance sheet data.



Net revenues:	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Bulgaria	$	23,912		$	24,245		$	43,188		$	40,669
Croatia	19,470			17,796			32,967			29,889
Czech Republic	59,299			42,733			98,332			74,811
Romania	62,858			52,046			110,704			92,027
Slovak Republic	24,211			22,000			42,357			38,923
Slovenia	17,585			18,724			31,846			33,200
Intersegment revenues⁽¹⁾	(2,465		)	(1,978		)	(3,287		)	(3,293		)
Total net revenues	$	204,870		$	175,566		$	356,107		$	306,226

⁽¹⁾Reflects revenues earned from the sale of content to other country segments in CME. All other revenues are third party revenues.



OIBDA:	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Bulgaria	$	5,634		$	3,931		$	2,888		$	1,504
Croatia	4,858			4,176			5,527			3,569
Czech Republic	20,700			933			23,413			(5,950		)
Romania	12,580			8,085			18,002			9,179
Slovak Republic	3,060			(556		)	(102		)	(4,124		)
Slovenia	2,690			4,235			3,205			6,072
Elimination	(102		)	380			276			400
Total operating segments	49,420			21,184			53,209			10,650
Corporate	(7,841		)	(13,229		)	(13,942		)	(23,404		)
Total OIBDA	$	41,579		$	7,955		$	39,267		$	(12,754	)



Reconciliation to condensed consolidated statements of operations and comprehensive income:	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Total OIBDA	$	41,579		$	7,955		$	39,267		$	(12,754	)
Depreciation of property, plant and equipment	(8,877		)	(8,902		)	(17,595		)	(19,073		)
Amortization of intangible assets	(3,231		)	(3,649		)	(6,511		)	(7,627		)
Other items ⁽¹⁾	(6,898		)	—			(6,898		)	—
Operating income / (loss)	22,573			(4,596		)	8,263			(39,454		)
Interest expense, net	(38,949		)	(30,999		)	(66,714		)	(62,773		)
Loss on extinguishment of debt (Note 5)	(24,161		)	(23,115		)	(24,161		)	(23,115		)
Foreign currency exchange gain / (loss), net	26			15,047			(392		)	(34,805		)
Change in fair value of derivatives	2,361			—			2,311			104
Other expense, net	(1,775		)	(412		)	(1,768		)	(425		)
(Provision) / credit for income taxes	(2,487		)	3,332			(290		)	11,313
Loss from discontinued operations, net of tax	(10,095		)	(350		)	(18,388		)	(896		)
Net loss	$	(52,507	)	$	(41,093	)	$	(101,139	)	$	(150,051	)

⁽¹⁾ Other items for the three and six months ended June 30, 2014 is comprised of a fine the competition agency in Slovenia is seeking to impose which was accrued in the second quarter of 2014 (see Note 20, "Commitments and Contingencies").



Total assets⁽¹⁾:	June 30, 2014		December 31, 2013
Bulgaria	$	170,225	$	172,189
Croatia	74,687		72,301
Czech Republic	924,866		920,630
Romania	443,691		452,876
Slovak Republic	156,583		150,562
Slovenia	90,861		99,619
Total operating segments	1,860,913		1,868,177
Corporate	98,805		71,035
Assets held for sale	1,418		22,661
Total assets	$	1,961,136	$	1,961,873

⁽¹⁾Segment assets exclude any intercompany balances.



Capital Expenditures:	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2014		2013		2014		2013
Bulgaria	$	555	$	356	$	1,078	$	650
Croatia	382		232		847		734
Czech Republic	742		915		5,364		5,590
Romania	1,413		746		2,212		2,178
Slovak Republic	137		571		930		988
Slovenia	930		695		1,714		2,224
Total operating segments	4,159		3,515		12,145		12,364
Corporate	1,089		1,055		2,054		2,444
Total capital expenditures	$	5,248	$	4,570	$	14,199	$	14,808



Long-lived assets⁽¹⁾:	June 30, 2014		December 31, 2013
Bulgaria	$	13,565	$	13,742
Croatia	5,326		6,234
Czech Republic	44,944		47,683
Romania	79,115		81,111
Slovak Republic	18,441		20,299
Slovenia	18,901		20,226
Total operating segments	180,292		189,295
Corporate	8,989		8,997
Total long-lived assets	$	189,281	$	198,292

⁽¹⁾ Reflects property, plant and equipment.



Revenue by type:	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2014		2013		2014		2013
Television advertising	$	161,612	$	140,763	$	275,000	$	243,146
Carriage fees and subscriptions	21,095		13,645		40,921		26,691
Other	22,163		21,158		40,186		36,389
Total net revenues	$	204,870	$	175,566	$	356,107	$	306,226