PRAGUE (Bloomberg) — Bermuda-domiciled Central European Media Enterprises Ltd. will use its acquisition of MediaPro Entertainment to diversify revenue from its holdings in central and eastern Europe, chief executive officer Adrian Sarbu said.

Central European Media, or CME, expects a decline in advertising to end in the third quarter and "stable" advertising from the fourth quarter, Sarbu said in a conference call last week after the company released second-quarter earnings.

Net income at the company founded by cosmetics heir Ronald Lauder fell to $24 million from $63.4 million a year earlier as advertisers spent less, the company said in a statement on Wednesday. Revenue fell 39 percent to $186.2 million, less than the median estimate of six analysts of $208 million.

"I can express our strategy in one word: Profit," Sarbu said. CME expects an investment by Time Warner Inc. and the acquisition of MediaPro to help boost revenue when the markets recover.

CME has been hurt by an economic contraction and decline in advertising in the Czech Republic, Ukraine, Romania and other countries in the region. Revenue fell sharply in Ukraine to $3.2 million from $30.9 million a year earlier.

"The deterioration in Ukraine is shocking," said Josef Nemy, an analyst at Komercni Banka AS in Prague.

"We will revise our estimates for Ukraine and Bulgaria down. We expect a net loss for the full year." Komercni Banka rates CME a "hold" with a 12-month price target of 395 koruna a share.

The company will "explore" funding opportunities for its Bulgarian operations, according to a presentation posted on the company's website. CME will give guidance to the market at its investor day in October.