Q3 2010 Interim Report 19 October 2010 - Modern Times Group MTG AB (publ.) (“MTG” or “the Group”) (Nasdaq OMX Stockholm Large Cap Market: MTGA, MTGB) today announced its financial results for the third quarter and nine months ended 30 September 2010. Third Quarter Highlights · Net sales up 11% year on year to SEK 3,531 (3,177) million - up 17% year on year at constant exchange rates · Free-TV Scandinavia net sales up 17% year on year to SEK 922 (790) million - up 22% year on year at constant exchange rates · Operating income up 50% year on year to SEK 368 (246) million, with increased operating margin of 10% (8%) when excluding associated company income · Total operating income up 22% year on year to SEK 458 (377) million when including SEK 91 (131) million of associated company income · Pre-tax profit up 48% year on year to SEK 499 (336) million · Net income up 42% year on year to SEK 360 (254) million · Basic earnings per share up 46% year on year to SEK 5.63 (3.86) · Extraordinary General Meeting of shareholders to take place on 21 October to vote on proposed demerger and listing of CDON Group AB (“CDON Group”) internet retailing subsidiary Nine Month Highlights · Net sales up 8% year on year to SEK 10,925 (10,097) million - up 13% year on year at constant exchange rates · Free-TV Scandinavia net sales up 13% year on year to SEK 3,018 (2,660) million - up 18% year on year at constant exchange rates · Operating income up 35% year on year to SEK 1,386 (1,030) million, with an increased operating margin of 13% (10%) when excluding associated company income · Total operating income up 42% year on year to SEK 1,706 (1,199) million when including SEK 320 (169) million of associated company income · Pre-tax profit up 52% year on year to SEK 1,664 (1,096) million · Net income up 41% year on year to SEK 1,182 (836) million · Basic earnings per share up 42% year on year to SEK 17.81 (12.51) · Receipt of three quarterly dividends of USD 4 million each totalling USD 12 million from CTC Media, Inc. (“CTC Media”) with final quarterly dividend of USD 4 million anticipated in December Hans-Holger Albrecht, President and Chief Executive Officer, commented: “Our record Q3 sales reflected constant exchange rate sales growth across each of our business areas in the seasonally smallest advertising sales quarter of the year. We also reported healthy incremental operating margins. The performance was once again led by our Scandinavian free-TV operations, which capitalised on strong advertising demand and rising pricing levels. Our Emerging Markets free-TV business reported a second consecutive quarter of year on year growth in stable market conditions, as well as an improved operating result. The growth in the Nordic pay-TV business reflected continued net IPTV subscriber intake and rising DTH premium ARPU levels, with the Swedish operations beginning to benefit from the recent acquisition of the English Premier League football rights. The Nordic pay-TV business reported a higher than anticipated operating margin in the quarter, whilst the performance of the Emerging Markets pay-TV business reflected the consolidation of the Russian and Ukrainian satellite platforms.” “We received the third of the four anticipated dividend payments from CTC Media in September, and ended the quarter with a net debt to trailing twelve month EBITDA ratio of 1.1 times and SEK 3.6 billion of available liquid funds.” “Moving forward, we aim to take further audience and market shares and to continue to invest in enhancing our competitive market positions. We have been encouraged by the level of advertising demand in Scandinavia and the stability in the emerging advertising markets, some of which have now returned to growth. We expect to continue to benefit from our strengthened pay-TV offerings and presence on multiple platforms in the Nordic region, and to invest in the development of our emerging market satellite platforms. Finally, we are continuing to work towards the proposed distribution of our rapidly expanding CDON Group Nordic internet retailing business to MTG shareholders before the end of the year.” *** The company will host a conference call today at 15.00 Stockholm local time, 14.00 London local time and 09.00 New York local time. To participate in the conference call, please dial: Sweden: +46 (0)8 5051 3786 International: +44 (0)20 7138 0824 US: +1 212 444 0481 The access pin code for the conference is 3140225 To listen to the conference call online, please go to www.mtg.se (http://www.mtg.se/). *** For further information, please visit www.mtg.se (http://www.mtg.se/), or contact: Hans-Holger Albrecht, President & Chief Executive Officer Mathias Hermansson, Chief Financial Officer Tel: +46 (0) 8 562 000 50 Investor & Analyst Enquiries Matthew Hooper Tel: +44 (0) 7768 440 414 Email: investor.relations@mtg.se (investor.relations@mtg.se) Press Enquiries Bert Willborg Tel: +44 (0) 7912 280 850 Email: bert.willborg@mtg.se (bert.willborg@mtg.se) Modern Times Group is a leading international entertainment broadcasting group with the largest geographical broadcast footprint in Europe. MTG's Viasat Broadcasting is the leading free-TV and pay-TV operator in Scandinavia and the Baltics, and has broadcasting operations in Bulgaria, Czech Republic, Hungary, Slovenia, Russia, Ukraine and Ghana. Viasat's free-TV and pay-TV channels and pay-TV platforms attract a total of 125 million viewers in 31 countries. MTG is also the major shareholder in Russia's largest independent television broadcaster (CTC Media - Nasdaq: CTCM), and the number one commercial radio operator and internet retailer of entertainment products in the Nordic region. Modern Times Group MTG AB Class A and B shares are listed on Nasdaq OMX Stockholm's Large Cap market (‘MTGA' and ‘MTGB'). The information in this Interim Report is such which Modern Times Group MTG AB is required to disclose under the Securities Markets Act. This information was released for publication at 13.00 CET on 19 October 2010.
Q3 2010 Interim Report
| Source: Modern Times Group MTG AB
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