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The participants of today's call will be CME’s President and Chief Executive Officer, Adrian Sarbu.Adrian Sarbu [French], and good afternoon. Romana Wyllie Chief Financial Officer, David Sach. David Sach Good afternoon. Romana Wyllie Anthony Chhoy, Executive Vice President Strategic Planning & Operations. Anthony Chhoy Good afternoon. Romana Wyllie And our General Counsel, Daniel Penn. Daniel Penn Hello, everyone. Romana Wyllie Before I turn to Adrian, let me read the usual safe harbor statement. Our presentation today will contain forward-looking statements. For these statements, we claim the protection of the Safe Harbor contained in the U.S. Private Securities Litigation Reform Act of 1995, and refer you to the Forward-looking Statements section in our Form 10-Q filed with the Securities and Exchange Commission earlier today for a list of such statements and the factors which could cause future results to differ from those presented in this call. During this call, we will refer to certain financial information that is not in U.S. GAAP. Please see the appendix to the presentation for a reconciliation to U.S. GAAP financial measures. In addition, our segment financial information that is presented in local currency is not in U.S. GAAP. We do not provide a reconciliation to these numbers, as the U.S. GAAP amounts are expressed in U.S. dollars in our financial statements. Additional information on our segment data is provided in Note 17 to our financial statements on Page 29 of our 10-Q. And now, please turn to Page 4 of our presentation, and I will pass you over to Adrian. Adrian Sarbu Thank you, Romana, and good morning, and good afternoon, everyone. When the markets are not generous, you need strong people in business to outperform them. This is CME today. In the first 9 months of 2011, our TV ad markets declined by 1%. While we doubled our OIBDA from $43 million to $86 million. We have been growing. Although the business environment remains challenging, we decided to give you specific guidance for 2011.
So we expect to generate revenues of $850 million and OIBDA of $166 million, assuming constant exchange rates. Audience leadership and free cash flow generation are and will be our priority this year.David will now walk you through macroeconomic development and our consolidated financial results. David Sach Thank you, Adrian. Please turn to Slide 5. In the third quarter, the consensus forecast shows that GDP grew in all of our markets with aggregate growth of 2%, driven mainly by external demand. Concerns about European debt impacted consumer confidence. As a result, private consumption continued to trail GDP growth, and being flat across our markets. TV ad spending grew in 4 out of our 6 markets. The Czech market experienced a sixth consecutive quarter of growth rising to 7%. In Slovenia, the market grew 5%, making this the fifth quarter of growth in the past 18 months. TV ad spending also increased in Bulgaria and Croatia by 2% each. In Slovakia, high unemployment has continued to impact the recovery of private consumption, leading to a decline of 4% in the TV ad market. In Romania, public consumption is estimated to have returned to growth only in the third quarter, and the TV ad markets are still lagging this recovery. Recently published estimates indicate that GDP and private consumption growth in all markets are expected to be similar in the fourth quarter to that in the third. Consequently, our current outlook for the fourth quarter is 2% growth in aggregate TV ad spending across all of our markets. As the growth in TV ad markets gradually catches up with the growth in GDP and private consumption. Moving to Slide 6. Our consolidated net revenues in the quarter increased by 23% to $165 million, equating to a 12% increase in constant currencies. All 3 segments contributed to this increase. Total costs increased by 13% to $157 million. But this was almost completely due to the appreciation of our currencies against the U.S. dollar. In constant currency terms, the cost increase was 2%. Read the rest of this transcript for free on seekingalpha.com