Central European Media Enterprises Ltd. (“CME” or the “Company”) (Nasdaq/Prague Stock Exchange - CETV) today announced financial results for the three and six months ended June 30, 2020.

Year-to-date operational and financial highlights:

• TV advertising revenues decreased 21% at actual rates and 17% at constant rates.
• Carriage fees and subscription revenues increased 7% at actual rates and 11% at constant rates.
• Costs charged in arriving at OIBDA decreased 14% at actual rates and 11% at constant rates.
• The OIBDA margin declined less than 100 basis points to approximately 33%.
• Cash generated from operating activities increased 11% at actual rates to US$ 155.0 million.
• Unlevered free cash flow increased 8% at actual rates to US$ 157.1 million.
• The net leverage ratio was 2.4x at the end of June, unchanged from the start of 2020.
• We ended the period with cash of US$ 176.1 million and total liquidity available of US$ 251.1 million.

On October 27, 2019, CME entered into a merger agreement with an affiliate of PPF Group N.V. ("PPF"). The closing of the proposed merger is subject to several conditions, including, but not limited to, the requisite vote of the Company’s shareholders in favor of the transaction and receipt of certain competition and other regulatory approvals. A special general meeting of shareholders of the Company was held on February 27, 2020, where more than 99% of the votes cast by shareholders were in favor of approving the merger agreement, the related statutory merger agreement and the merger transaction. In addition, regulatory approvals required under the merger agreement in Romania and Slovenia have been obtained. For additional information on the merger, please see the proxy statement of the Company related to the special general meeting of shareholders, filed with the SEC on January 10, 2020. PPF is currently expecting to file the required notification with the European Commission in the third quarter, and based on our anticipated timing of that, we expect the proposed merger to be completed prior to October 27, 2020.

In a joint statement, Michael Del Nin and Christoph Mainusch, Co-Chief Executive Officers, said, "Our businesses have demonstrated a remarkable degree of resilience since the COVID-19 pandemic began to impact operations in March. Despite the very challenging environment, we have maintained our high margins, and cash flow in the first half of 2020 has actually increased over last year. While the pandemic has had a negative impact on advertising markets across our region, much of the downturn occurred in April and May, with June results reflecting a significant improvement in spending patterns. Based on current bookings in July and August, spending appears to be returning to comparable levels seen in the same periods in 2019. Our financial position remains strong, and we will continue taking a proactive approach in responding to the uncertainty created by the pandemic."