MTG completes acquisition of remaining shares in TV 2 Sport in Denmark

| Source: Modern Times Group MTG AB
Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international
entertainment broadcasting group, today announced that it has completed the
acquisition of the remaining 49% of the shares in the Danish joint venture
company TV 2 Sport A/S (‘TV 2 Sport’) from TV 2 DANMARK A/S (‘TV 2 Denmark’).
The completion follows the receipt of regulatory approval from the Danish
Competition and Consumer Authority. The payment for the shares comprises an
undisclosed cash consideration and the transfer of the exclusive Danish
broadcasting rights to the European Handball Championships for 2016 and 2018
from MTG to TV 2 Denmark.
TV 2 Sport was launched in April 2007 by MTG and TV 2 Denmark as a joint venture
company and has to date been operated independently of both MTG and TV 2
Denmark. The company broadcasts the TV 2 Sport and TV 2 Sport HD channels, as
well as the TV 2 Sport Premier League channel in SD and HD. The channels have
together offered a wide range of premium sports content including football from
Superligaen, the Barclays (English) Premier League, UEFA Champions League, and
the FIFA World Cup qualifiers; NFL American football; the Danish men’s and
women’s Handball championships; ice hockey from the NHL and the Danish league;
as well as coverage of tennis, cycling, golf and other sports events. The
channels are available, alongside the Viasat Golf channels (SD and HD), on the
Viasat satellite pay-TV platform, as well as on third party cable, IPTV and
terrestrial networks. The TV 2 Sport channels have a Danish TV household
penetration of up to approximately 50%.

The Group will now assume full management and operational control of TV 2 Sport
and fully consolidate the results of the business in its accounts with effect
from 1 January 2013. The results for TV 2 Sport have previously been included on
a proportional basis in the ‘Central operations, eliminations & other
businesses’ reporting line within the Viasat Broadcasting business area in the
Group’s segmental reporting matrix, net of internal sales and cost eliminations,
and will from 1 January 2013 be fully consolidated and included in the ‘Pay-TV
Nordic’ reporting line, net of internal sales and cost eliminations, within the
Viasat Broadcasting business area in the matrix, with prior periods reported as
before on a proportional basis but within the ‘Pay-TV Nordic’ reporting line.

TV 2 Sport reported total revenues of DKK 347.7 million for the full year 2011
and DKK 256.3 million for the first nine months of 2012, with total operating
profits (EBIT) of DKK 16.8 million and DKK 22.6 million for the two respective
periods. Under the new reporting structure to be adopted from Q1 2013, whereby
the segmental reporting for prior periods will comprise 50% of TV 2 Sport’s
results, net of internal sales and cost eliminations, MTG will include the
Swedish krona equivalent of DKK 102.3 million of TV 2 Sport net sales and DKK
11.3 million of TV 2 Sport operating profit (EBIT) for the first nine months of
2012 in the ‘Pay-TV Nordic’ line of the Group’s segmental reporting matrix. The
same line for the full year 2011 would have included the Swedish krona
equivalent of DKK 137.9 million of TV 2 Sport net sales and DKK 8.4 million of
TV 2 Sport operating profit (EBIT).

Jørgen Madsen, President and CEO of MTG, commented: “This acquisition reflects
the success of the TV 2 Sport operation and further enhances our market leading
SD and HD sports coverage. It is clear that our pay-TV sports channel and
content offering, when also combined with the sports coverage on our free-TV
channels including TV3+, is the most comprehensive in the market and is
available to subscribers on multiple TV distribution platforms.”

“This consolidation is not included in our previously provided full year 2013
earnings outlook statement for our Nordic pay-TV operations and will increase
segment sales in 2013. It does not however alter the previously provided full
year 2013 segment operating profit (EBIT) margin expectations.”

For further information, please visit or contact:

Jørgen Madsen Lindemann, President & Chief Executive Officer
Tel:                               +46 (0) 8 562 000 50

Matthew Hooper, Head of Corporate Communications & Planning
Tel:                               +44 (0) 7768 440 414
Email:                  /
Modern Times Group (MTG) is an international entertainment broadcasting group
with operations that span four continents and include free-TV, pay-TV, radio and
content production businesses. MTG’s Viasat Broadcasting operates free-TV and
pay-TV channels, which are available on Viasat’s own satellite platforms and
third party networks, and also distributes TV content over the internet. MTG is
also the largest shareholder in CTC Media, which is Russia’s leading independent
television broadcaster.

Modern Times Group is a growth company and generated record net sales of SEK
13.5 billion in 2011. MTG’s Class A and B shares are listed on Nasdaq OMX
Stockholm’s Large Cap index under the symbols ‘MTGA’ and ‘MTGB’.

The information in this announcement is that which Modern Times Group MTG AB is
required to disclose under the Securities Market Act and/or the Financial
Instruments Trading Act. It was released for publication at 15.00 CET on 20
December 2012.