SEGMENT DATA

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT DATA

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 by segment for the three and six months ended June 30, 2020 and 2019 for condensed consolidated statements of operations and comprehensive income / loss data and condensed consolidated statements of cash flow data; and as at June 30, 2020 and December 31, 2019 for condensed consolidated balance sheet data.

Net revenues:	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
Bulgaria	$	15,276		$	22,607		$	32,231		$	41,900
Czech Republic	45,886			64,379			95,101			114,695
Romania	37,197			48,362			76,712			87,172
Slovak Republic	21,085			27,313			43,244			48,645
Slovenia	17,094			22,276			33,828			40,126
Intersegment revenues (1)	(993		)	(1,338		)	(1,755		)	(2,380		)
Total net revenues	$	135,545		$	183,599		$	279,361		$	330,158

⁽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 June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
Bulgaria	$	4,462		$	7,888		$	9,280		$	14,009
Czech Republic	20,870			32,293			36,820			47,240
Romania	18,769			25,243			33,833			42,776
Slovak Republic	8,836			8,555			12,781			10,284
Slovenia	7,149			6,213			12,011			11,144
Elimination	9			(24		)	6			24
Total operating segments	60,095			80,168			104,731			125,477
Corporate	(5,586		)	(6,826		)	(13,051		)	(14,078		)
Total OIBDA	54,509			73,342			91,680			111,399
Depreciation of property, plant and equipment	(7,972		)	(8,154		)	(15,899		)	(16,380		)
Amortization of broadcast licenses and other intangibles	(2,110		)	(2,113		)	(4,277		)	(4,307		)
Other items (1)	(253		)	(2,613		)	(1,133		)	(2,613		)
Operating income	44,174			60,462			70,371			88,099
Interest expense (Note 14)	(5,754		)	(7,735		)	(12,349		)	(15,977		)
Other non-operating income / (expense), net (Note 15)	328			2,237			(5,808		)	(860		)
Income before tax	$	38,748		$	54,964		$	52,214		$	71,262

⁽¹⁾  Other items during the three and six months ended June 30, 2020 reflects costs relating to the Merger, primarily legal and professional fees.

Total assets: (1)	June 30, 2020		December 31, 2019
Bulgaria	$	139,415	$	135,593
Czech Republic	713,393		758,479
Romania	263,696		289,968
Slovak Republic	141,352		150,806
Slovenia	81,702		92,144
Total operating segments	1,339,558		1,426,990
Corporate	122,984		20,872
Total assets	$	1,462,542	$	1,447,862

⁽¹⁾  Segment assets exclude any intercompany balances.

Capital expenditures:	For the Six Months Ended June 30,
	2020		2019
Bulgaria	$	1,518	$	1,635
Czech Republic	3,608		3,072
Romania	1,483		1,033
Slovak Republic	720		442
Slovenia	1,394		1,912
Total operating segments	8,723		8,094
Corporate	36		178
Total capital expenditures	$	8,759	$	8,272

Long-lived assets: (1)	June 30, 2020		December 31, 2019
Bulgaria	$	11,865	$	13,538
Czech Republic	32,142		36,760
Romania	29,300		31,115
Slovak Republic	14,819		16,201
Slovenia	13,740		15,207
Total operating segments	101,866		112,821
Corporate	512		1,080
Total long-lived assets	$	102,378	$	113,901

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

Revenues from contracts with customers comprised the following for the three and six months ended June 30, 2020 and 2019:

Consolidated revenue by type:	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2020		2019		2020		2019
Television advertising	$	98,755	$	147,184	$	205,210	$	258,231
Carriage fees and subscriptions	31,510		29,239		63,094		58,789
Other	5,280		7,176		11,057		13,138
Total net revenues	$	135,545	$	183,599	$	279,361	$	330,158

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.