Selling, general and administrative expenses were down 5% year-on-year in US dollar terms and down 3% year-on-year in ruble terms in the first quarter, reflecting lower advertising and promotion expenses, mainly due to the later timing of advertising campaigns at CTC and Domashny channels.
Stock-based compensation expense totaled $1.3 million in the quarter (Q1 2012: $2.9 million). The year-on-year decrease in stock-based compensation expense is principally due to departures of several of the Company's employees and executives in the second half of 2012.
Programming expenses were up 16% year-on-year in US dollar terms and up 17% in ruble terms in the first quarter, primarily reflecting a more expensive programming mix at CTC channel due to airing more expensive foreign content, as well as the Company's investments in the Domashny and Peretz grids to support the increased focus on younger audiences for Domashny and comedy programming for Peretz.
CTC Media's consolidated OIBDA was therefore down 8% year-on-year in US dollar terms to $50.6 million in the first quarter (Q1 2012: $55.1 million). OIBDA margin was down year-on-year to 25.9% in the first quarter of 2013 from 28.8% in the first quarter of 2012.Depreciation and amortization expenses were up 64% year-on-year in US dollar terms and up 65% year-on-year in ruble terms in the quarter. Starting from October 1, 2012, CTC Media's depreciation and amortization expense includes the amortization of its analog licenses due to the reassessment of their useful lives from indefinite to finite as result of the planned transition from analog to digital broadcasting. Net interest income was $3.1 million in the first quarter of 2013 (Q1 2012: $1.9 million). Foreign currency gain was $0.5 million in the first quarter of 2013 (Q1 2012: foreign currency loss of $1.4 million). Pre-tax income therefore decreased by 10% year-on-year to $45.7 million in the first quarter (Q1 2012: $50.9 million). CTC Media's effective tax rate was 35.6% in the first quarter (Q1 2012: 33.9%). The year-on-year increase in the effective tax rate was primarily due to the recognition of certain foreign tax credits that were deducted from the US income tax in 2012. Net income attributable to CTC Media, Inc. stockholders therefore was down 12% in US dollar terms to $28.6 million in the first quarter (Q1 2012: $32.6 million), and fully diluted earnings per share increased to $0.18 (Q1 2012: $0.21). Cash Flows The Company's net cash used in operating activities totaled $12.9 million in the first quarter of 2013 (net cash provided by operating activities in Q1 2012: $8.9 million) and reflected the net effect of higher cash spend on the acquisition of programming rights, partially offset by increased advertising sales.
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