Q3 profit soars 350% at Russia's CTC

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LONDON -- Russia's CTC Media, which operates the country's fourth-largest broadcaster CTC and niche daytime channel Domashny, reported buoyant results that beat market expectations Tuesday driven by a growing advertising market.

In its second financial statement since it went public via a Nasdaq listing in June, CTC reported a third-quarter profit increase of nearly 350% to $8.4 million, compared with the same frame a year ago.

Operating revenue jumped nearly 48% to $70.9 million, compared with $47.9 million a year ago. The company's earnings before interest, taxes, depreciation and amortization doubled from $9.5 million a year ago to $19 million, the CTC said.

Overall, the company's net income for the first three quarters rose 167% to $65.2 million.

The CTC, an entertainment channel that reaches 100 million viewers in Russia, had a 10.1% audience share in the third quarter. In addition, the company's daytime home channel Domashny, which reaches 57 million people, garnered 1.5%.

Alexander Rodnyansky, CTC's Ukrainian-born CEO who steered the group through its initial public offering, said Tuesday's results were encouraging.

"During the third quarter we continued to outperform the fast-growing Russian television market," Rodnyansky said. "As a result, we are improving our profitability, and our financial position is strong. Looking ahead, we remain optimally positioned to execute our business plan and build value for our shareholders over the long term."

CTC Media raised $346 million when it brought its shares to the U.S. market at a price of $14 each.

On Tuesday, Deutsche Bank Securities downgraded the stock from "buy" to "hold." CTC shares closed down 4.9% at $24.27.

Georg Szalai in New York contributed to this report.
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