Bermuda-registered Central European Media Enterprises Ltd. (CME) suffered a net loss of $20.5 million in the year to the end of December, compared with a net loss in 1993 of $8,360,000.

The declining bottom line was put down in part to the company's share of losses in two German TV stations it has a minority stake in, 1A Berlin and FFF Nuremberg.

Contributing to the increased losses were also the higher corporate costs, including a $5.8 million compensation charge, offset by $4.65 million profit from their Czech Republic station, Nova TV, in 1994, after the deduction of tax and minority interests.

There were continuing efforts, also, at station and licence development.

CME pulled out a $7,045,000 profit (after interest and taxes) from 11 months of operating Nova TV, which had net revenue of more than $53 million.

As a result, CME recorded an operating profit of $957,000 for the year to the end of December.

The company started in 1991 to develop and operate regional and national commercial TV stations in newly emerging markets of central Europe and regional private commercial television stations in Germany.

Development stage activities precluded operating revenues up to the end of 1993. Such activities included seeking broadcast licences, securing financing and engaging local management for future programme endeavours.

Broadcast operations have reached some 17.4 million people, since the launch of Nova TV which led to the receipt of revenues starting February 1994.

Mr. John Severino, CME's president and CEO, commented: "The overall results of Nova TV, our national Czech television station, demonstrate our ability to move rapidly from the licensing stage to full commercial broadcasting.

"In its first eleven months, Nova TV grew its audience share to 68.5 percent of the Czech television market, representing one of the more dramatic achievements in television history.

"Nova TV continues to improve its programming and operating efficiency while we are building advertiser interest for 1A Berlin and FFF Nuremberg, our regional stations in Germany.

"Our efforts are geared toward CME's development into a leading broadcaster positioned to benefit from large-scale privatisation and the subsequent growth of advertising expenditures in Central Europe and Germany.'' Mr. Leonard M. Fertig, chief financial officer and president of development commented: "We are pleased with the outstanding financial performance of Nova TV. This dramatic growth has exceeded our expectations. We are focused on building upon our success through our active pursuit of additional commercial broadcasting licences in Poland, Hungary, Romania, Bulgaria and Slovakia, among other markets.

"Thus far in 1995, we joined with three leading Slovenian broadcasters, MMTV, Kanal A and Tele 59, to create the first national television production company in Slovenia.

"We also made an investment in Radio Alfa, one of two independent national radio broadcasters in the Czech Republic. All of these projects reflect our efforts to build shareholder value by establishing early positions in new broadcasting markets where advertising growth should be exceptional.'' The operating profit before minority interests of $957,000 is compared against operating losses in 1993 of $5,321,000.