INTERVIEW-UPDATE 1-TV group CME sees Ukraine revenue doubling

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By Jason Hovet

LONDON, July 4 (Reuters) - Television group Central European Media Enterprises (CME) (CETV.O) (CETVsp.PR) expects revenue from its Ukraine operations to more than double over the next three years to around $300 million, its chief executive said.

Ukraine is by far the biggest market among the six central and eastern European countries where CME operates, but it contributed only 15 percent to the group's revenues in 2007. Michael Garin told Reuters in an interview the Ukrainian advertising market could grow to around $1 billion in three years according to outside estimates, from the current $400 million, and CME's revenue growth should match that pace.

"Ukraine will be the fastest growing market and the most important market in terms of total contribution to CME over the coming years," Garin said.

"If we have a third of revenues there, which is not an unreasonable assumption, that would be $300 million," he said. "Certainly we expect to have at least a third of the market within three years, which has been historical."

CME, controlled by U.S. businessman Ronald Lauder, has grown rapidly in past years, helped by expansion in regional markets where strong economic growth and rising consumer demand have lifted television ad spending.

The company's enterprise value, or equity plus net debt, stands at 14.4 times its EBTIDA, a higher multiple than its main regional rival TVN TVNN.WA, which trades at 12.4, according to Reuters data.