SEGMENT DATA

9 Months Ended

Sep. 30, 2019

. SEGMENT DATA

We manage our business on a geographical basis, with five operating segments: Bulgaria, the Czech Republic, Romania, the Slovak Republic and Slovenia, which are also our reportable segments and our main operating countries. These 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 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 and digital properties. This is supplemented by revenues from cable and satellite television service providers that carry our channels on their platforms and from revenues through the sale of distribution rights to third parties. We do not rely on any single major customer or group of major customers. Intersegment revenues and profits have been eliminated in consolidation.

We evaluate our consolidated results and the performance of our segments based on net revenues and OIBDA (as defined below). We believe OIBDA is useful to investors because it provides a meaningful representation of our performance as it excludes certain items that either do not impact our cash flows or do not impact the operating results of our operations. OIBDA is also used as a component in determining management bonuses.

OIBDA includes amortization and impairment of program rights and is calculated 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.

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, 2019 and 2018 for condensed consolidated statements of operations and comprehensive income / loss data and condensed consolidated statements of cash flow data; and as at September 30, 2019 and December 31, 2018 for condensed consolidated balance sheet data.



Net revenues:	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Bulgaria	$	16,062		$	16,348		$	57,962		$	59,208
Czech Republic	46,857			45,489			161,552			158,051
Romania	39,684			41,128			126,856			136,683
Slovak Republic	22,146			20,867			70,791			70,590
Slovenia	14,368			13,586			54,494			53,483
Intersegment revenues ⁽¹⁾	(266		)	(380		)	(2,646		)	(2,360		)
Total net revenues	$	138,851		$	137,038		$	469,009		$	475,655


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



OIBDA:	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
OIBDA:	2019			2018			2019			2018
Bulgaria	$	2,430		$	4,481		$	16,439		$	13,084
Czech Republic	17,505			15,388			64,745			59,009
Romania	16,941			15,607			59,717			58,696
Slovak Republic	7,071			5,032			17,355			10,041
Slovenia	3,816			2,158			14,960			12,010
Elimination	(7		)	(15		)	17			18
Total operating segments	47,756			42,651			173,233			152,858
Corporate	(6,345		)	(6,884		)	(20,423		)	(20,922		)
Total OIBDA	41,411			35,767			152,810			131,936
Depreciation of property, plant and equipment	(8,245		)	(8,202		)	(24,625		)	(25,150		)
Amortization of broadcast licenses and other intangibles	(2,029		)	(2,216		)	(6,336		)	(6,839		)
Other items ⁽¹⁾	(354		)	(3,152		)	(2,967		)	(3,152		)
Operating income	30,783			22,197			118,882			96,795
Interest expense (Note 15)	(8,037		)	(9,977		)	(24,014		)	(40,206		)
Other non-operating (expense) / income, net (Note 16)	(3,963		)	1,574			(4,823		)	(1,144		)
Income before tax	$	18,783		$	13,794		$	90,045		$	55,445

⁽¹⁾

Other items during the three and nine months ended September 30, 2019 reflects costs relating to our strategic review, primarily financial and professional fees. Other items during the three and nine months ended September 30, 2018 consists solely of expense related to the accelerated vesting of RSUs with performance conditions in accordance with the terms of the corresponding award agreement following the completion of sale of the Company's Croatian operations on July 31, 2018.



Total assets: ⁽¹⁾	September 30, 2019		December 31, 2018
Bulgaria	$	129,160	$	142,165
Czech Republic	708,404		771,286
Romania	263,825		297,937
Slovak Republic	137,321		146,252
Slovenia	76,963		89,440
Total operating segments	1,315,673		1,447,080
Corporate	23,508		41,281
Total assets	$	1,339,181	$	1,488,361


⁽¹⁾	Segment assets exclude any intercompany balances.



Capital expenditures:	For the Nine Months Ended September 30,
	2019		2018
Bulgaria	$	4,738	$	2,939
Czech Republic	4,555		5,450
Romania	2,234		2,009
Slovak Republic	1,087		1,210
Slovenia	2,769		2,970
Total operating segments	15,383		14,578
Corporate	256		490
Total capital expenditures	$	15,639	$	15,068



Long-lived assets: ⁽¹⁾	September 30, 2019		December 31, 2018
Bulgaria	$	12,734	$	10,627
Czech Republic	33,773		39,314
Romania	28,236		33,368
Slovak Republic	14,643		16,376
Slovenia	13,919		15,955
Total operating segments	103,305		115,640
Corporate	1,248		1,964
Total long-lived assets	$	104,553	$	117,604


⁽¹⁾	Reflects property, plant and equipment, net.

Revenues from contracts with customers comprised the following for the three and nine months ended September 30, 2019 and 2018:



Consolidated revenue by type:	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Television advertising	$	103,430	$	103,574	$	361,661	$	373,542
Carriage fees and subscriptions	29,568		28,168		88,357		85,044
Other	5,853		5,296		18,991		17,069
Total net revenues	$	138,851	$	137,038	$	469,009	$	475,655

Management reviews the performance of our operations based on the above revenue types as well as on a geographic basis as described above. Management does not review other disaggregations of revenues from contracts with customers.