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 nine months ended September 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 September 30, 2014 and December 31, 2013 for condensed consolidated balance sheet data.



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Net revenues:	2014			2013			2014			2013
Bulgaria	$	17,711		$	17,925		$	60,899		$	58,594
Croatia	10,917			10,938			43,884			40,827
Czech Republic	38,080			35,987			136,412			110,794
Romania	46,839			43,980			157,543			136,011
Slovak Republic	17,679			13,275			60,036			52,198
Slovenia	9,598			10,212			41,444			43,412
Intersegment revenues⁽¹⁾	(675		)	(1,329		)	(3,962		)	(4,622		)
Total net revenues	$	140,149		$	130,988		$	496,256		$	437,214

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



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
OIBDA:	2014			2013			2014			2013
Bulgaria	$	2,162		$	1,601		$	5,050		$	3,105
Croatia	(549		)	16			4,978			3,585
Czech Republic	9,694			(3,269		)	33,107			(9,222		)
Romania	4,872			(3,347		)	22,875			5,834
Slovak Republic	(2,070		)	(6,092		)	(2,172		)	(10,216		)
Slovenia	(3,426		)	(4,000		)	(234		)	2,072
Elimination	32			(170		)	307			231
Total operating segments	10,715			(15,261		)	63,911			(4,611		)
Corporate	(7,778		)	(16,324		)	(21,720		)	(39,728		)
Total OIBDA	$	2,937		$	(31,585	)	$	42,191		$	(44,339	)



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Reconciliation to condensed consolidated statements of operations and comprehensive income:	2014			2013			2014			2013
Total OIBDA	$	2,937		$	(31,585	)	$	42,191		$	(44,339	)
Depreciation of property, plant and equipment	(8,496		)	(8,557		)	(26,091		)	(27,630		)
Amortization of intangible assets	(3,081		)	(3,791		)	(9,592		)	(11,418		)
Other items ⁽¹⁾	—			—			(6,885		)	—
Operating loss	(8,640		)	(43,933		)	(377		)	(83,387		)
Interest expense, net	(37,044		)	(23,650		)	(103,758		)	(86,423		)
Loss on extinguishment of debt (Note 5)	—			—			(24,161		)	(23,115		)
Foreign currency exchange (loss) / gain, net	(6,018		)	43,711			(6,410		)	8,906
Change in fair value of derivatives	—			—			2,311			104
Other income / (expense), net	22			(232		)	(1,746		)	(657		)
(Provision) / credit for income taxes	(658		)	2,296			(948		)	13,609
Loss from discontinued operations, net of tax	(144		)	(1,465		)	(18,532		)	(2,361		)
Net loss	$	(52,482	)	$	(23,273	)	$	(153,621	)	$	(173,324	)

⁽¹⁾ Other items for the nine months ended September 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⁾:	September 30, 2014		December 31, 2013
Bulgaria	$	154,869	$	172,189
Croatia	61,698		72,301
Czech Republic	837,921		920,630
Romania	397,617		452,876
Slovak Republic	136,921		150,562
Slovenia	75,461		99,619
Total operating segments	1,664,487		1,868,177
Corporate	88,174		71,035
Assets held for sale	1,110		22,661
Total assets	$	1,753,771	$	1,961,873

⁽¹⁾Segment assets exclude any intercompany balances.



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Capital Expenditures:	2014		2013		2014		2013
Bulgaria	$	695	$	502	$	1,773	$	1,152
Croatia	576		352		1,423		1,086
Czech Republic	1,142		1,031		6,505		6,610
Romania	1,501		1,571		3,614		3,749
Slovak Republic	328		284		1,258		1,272
Slovenia	1,135		996		2,849		3,220
Total operating segments	5,377		4,736		17,422		17,089
Corporate	900		1,351		2,954		3,795
Total capital expenditures	$	6,277	$	6,087	$	20,376	$	20,884



Long-lived assets⁽¹⁾:	September 30, 2014		December 31, 2013
Bulgaria	$	12,464	$	13,742
Croatia	4,747		6,234
Czech Republic	41,000		47,683
Romania	71,796		81,111
Slovak Republic	16,771		20,299
Slovenia	17,425		20,226
Total operating segments	164,203		189,295
Corporate	8,180		8,997
Total long-lived assets	$	172,383	$	198,292

⁽¹⁾ Reflects property, plant and equipment.



Revenue by type:	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
Television advertising	$	104,918	$	96,866	$	379,918	$	340,012
Carriage fees and subscriptions	20,232		15,216		61,153		41,907
Other	14,999		18,906		55,185		55,295
Total net revenues	$	140,149	$	130,988	$	496,256	$	437,214