PRAGUE (Bloomberg) ? Central European Media Enterprises Ltd., which operates television stations in Eastern Europe, boosted its estimate for this year?s revenue by four percent as economic growth drives demand for advertising.

The Bermuda-based company, known as CME, said net revenue this year will total $585 million, compared with the Aug. 3 forecast of $564 million and $401 million reached in 2005, it said in a presentation to investors posted on its Web site yesterday.

The company owns TV networks in the Czech Republic, Romania, Croatia, Slovakia, Slovenia and Ukraine and reaches an aggregate of 82 million viewers. Advertising in the Czech Republic, which accounts for one-third of CME?s business, grew after the company changed its strategy of selling advertisement. Other key markets such as in Ukraine and Romania are set to grow with more investments flowing in, analysts said.

The Czech revenue ?will be driven by growing prices? for advertising ?and in general thanks to economic growth,? said Milan Vanicek, an analyst at Atlantik Financial Markets AS in Prague. The Romanian and Ukrainian advertisement markets ?have a huge growth potential and with growing economies there, cash from advertising is also to go up.?

The company?s stock rose 4.3 percent to $68.86 by 10:45 a.m. in New York. It traded at 1,515 koruna as of 4 p.m. in Prague, up 1.8 percent from yesterday.

2006 Estimates

The broadcaster, which is majority owned by cosmetics heir Ronald Lauder, maintained its 2006 projection for earnings before interest, taxes, depreciation and amortization at $204 million.

CME boosted a revenue forecast for the Czech Republic to $200 million this year, from an initial $190 million and newly set predictions for the Czech unit?s revenue at $230 million next year and $270 million in 2008. EBITDA from the Czech business are seen at $95 million in 2006, $135 million next year and $170 million in 2008.

Revenue growth in the Czech Republic will be driven by new policy of advertisement and commercials sales, by the newly bought channel and by new legislation that cut commercials time for the public television, CME executives said at a meeting with investors broadcast over the Internet yesterday.

TV Nova changed its strategy of selling ad time this year. Internet news service Aktualne.cz reported in March it raised ad prices by as much as 25 percent and canceled some long-term contracts.

CME expects revenue from its Romanian operations at $146 million this year while EBITDA should reach $62 million.

The third-biggest market is Ukraine, with revenue projected at $99 million and EBITDA expected at $28 million. Chief Executive Officer Michael Garin said at the meeting he sees there ?great growth opportunities in the multichannel strategy? and expects the Ukrainian advertising market to continue growing.

The company will focus on selling TV content and programming through new media, including the Internet and mobile phones, Garin said.