Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Central European Media Shares Tanked

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of broadcaster Central European Media (Nasdaq: CETV  ) ("CME") were picking up static today, falling as much as 19%, after a troubling earnings report.

So what: Like many businesses in Europe, CME is struggling, as its net loss of $32.6 million in the quarter clearly shows. A small adjusted profit was still far below forecasts. CEO Adrian Sarbu echoed the disappointment of investors, saying:

Our third quarter results indicate that our markets are not recovering. In the second half of 2012 advertising spending has not matched our expectations.

Sarbu's later announcement on the earnings call that the company was looking at options to improve liquidity through equity financing and asset sales only added further to the concern.

Now what: Europe seems pretty much off-limits until the situation improves, and CME shows a good reason why. Revenues declined 15% from a year ago, though much of that was due to currency translation, and its operating loss grew by 42%. With shares down nearly 50% since May, some observers might see an eventual turnaround play, but I'd stay away.

Want more news on CME? Just add it to your Watchlist here.

Jeremy Bowman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2087367, ~/Articles/ArticleHandler.aspx, 10/23/2016 2:36:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
CETV $2.30 Up +0.10 +4.55%
Central European M… CAPS Rating: **