Q4 2013 Full year report January – December

| Source: Modern Times Group MTG AB
Stronger Products. Higher Growth
Q4 2013 Highlights

  · Net sales up 14% at constant FX & up 6% on an organic basis
  · All five business segments reported sales growth at constant FX and were
  · Audience share gains in almost all markets
  · Pay-TV net subscriber growth in Nordic and Emerging Markets on a sequential
  · Operating income (EBIT) of SEK 457m (514), excl. associated company income
of SEK 108m (-38) and non-cash asset impairment charge related to Raduga joint
venture of SEK 147m (-)
  · Net income of SEK 261m (378) and basic earnings per share of SEK 3.68 (5.25)
  · Cash flow from operations of SEK 392m (583) and net debt position of SEK
772m (1)
  · Board of Directors to propose a dividend for 2013 of SEK 10.50 (10.00) per
share, representing a record high pay-out ratio of 56% (44) excl. non-recurring

Financial Overview

|(SEKm)                         |   2013|   2012|   2013|   2012|
|                               |Oct-Dec|Oct-Dec|Jan-Dec|Jan-Dec|
|Net sales                      |  4,083|  3,620| 14,129| 13,336|
|Growth at constant FX          |    14%|     0%|     8%|     1%|
|Organic growth at constant FX  |     6%|     2%|     5%|     2%|
|EBIT before associated company |    457|    514|  1,301|  1,695|
|income and non-recurring items |       |       |       |       |
|Margin before associated       |  11.2%|  14.2%|   9.2%|  12.7%|
|company income and non         |       |       |       |       |
|-recurring items               |       |       |       |       |
|Associated company income *    |    108|    -38|    584|    429|
|EBIT before non-recurring items|    564|    476|  1,885|  2,124|
|Non-recurring items            |   -147|      -|   -147|      -|
|Total EBIT                     |    417|    476|  1,738|  2,124|
|Net Income                     |    261|    378|  1,168|  1,594|
|Basic Earnings per Share (SEK) |   3.68|   5.25|  16.39|  22.93|
|Cash flow from operations      |    392|    583|  1,340|  1,655|

* Including MTG’s USD 20.5m Q4 2012 participation in USD 82.5m of non-recurring
charges incurred by associated company CTC Media (‘CTC Media’)
in Q3 2012, and USD 4.6m Q1 2012 participation in USD 89.5m of non-recurring
charges incurred by CTC Media in Q4 2011.

President & CEO comments

A year of investments
2013 was a year of investment in our three key strategic growth areas – content,
digital and geographical expansion – and these investments are paying off in
accelerated growth as our products become more relevant and more broadly
available than ever before. We are totally focused on our customers and the
creation of engaging and exciting entertainment experiences, which is why we
have acquired even more premium sports and movie rights, further expanded our
agreements with leading content producers and distributors, and launched so many
more channels and services on so many different networks and platforms. It is
also why we have moved further up the value chain by ourselves becoming the
number one content production house in the Nordic region and one of the world’s
leading content distribution companies. We have grown our audience shares and
subscriber bases across almost all of our markets, and captured substantial
market share gains during the year. Our digital expansion is also further
accelerating as MTGx develops ahead of plan to drive on demand video consumption
across our markets and rapidly grow our online advertising and subscription
revenues. And we ended the year by entering two entirely new markets for us -
Tanzania and Turkey, both of which offer significant growth potential for the
future. All of these investments are being made precisely to shape the future of
entertainment by creating the entertainment group of the future.

Delivering growth
We delivered the fifth consecutive quarter of accelerating sales growth with 14%
constant FX growth in Q4, and 8% growth for the full year. We achieved record
sales growth levels for our emerging market free-TV and pay-TV operations in
2013 and now face tough comps in what continue to be soft advertising markets.
Our Scandinavian free-TV operations have returned to growth, and our Nordic pay
-TV business has continued to benefit from strong overall subscriber growth and
rising prices. We are investing further in 2014 and always looking for
opportunities to accelerate the momentum in the business. Our ground breaking
exclusive coverage of the Winter Olympics is just one example of such
initiatives, and will boost revenues for both our free-TV and pay-TV businesses,
generate long term value for the business but also create short term earnings
pressure. The competitive environment is more intense than ever but the
investments that we are making position us well to capitalise on the ongoing
shifts in consumer behavior and revenue models.

Enabling continued cash returns
We have continued to convert a high proportion of our earnings into cash flow
and also benefited from the dividend stream from CTC Media. This has enabled us
to invest in organic and acquisition led growth and to return money to
shareholders. We ended the year with a net debt to trailing twelve month EBITDA
ratio of just 0.5 times, and have also refinanced at attractive rates to ensure
that we continue to have the flexibility and firepower to invest in the future
growth of the business and deliver cash shareholder returns. The Board is
therefore proposing a dividend of SEK 10.50 for 2013, which represents a record
high pay-out ratio of 56%.

Jørgen Madsen Lindemann
President & Chief Executive Officer

“Stronger Products. Higher Growth. That is what our business is all about –
creating entertainment experiences that people love and want more and more of.
Our sales growth has accelerated for the 5th straight quarter and we are
investing in this momentum with a clear focus on Content, Digital and
Geographical Expansion!”

* * *

Conference Call

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 5065 3936
UK:                       +44(0)20 3427 1908
US:                       +1212 444 0896

The access pin code for the call is 3712067. To listen to the conference call
online and for further information please visit www.mtg.se

* * *

For further information, please visit www.mtg.se, or contact:

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

Investors & Analysts
Tel:                      +46 (0) 73 699 2714
Email:                 investor.relations@mtg.se

Tel:                      +46 (0) 73 699 2709
Email:                 press@mtg.se

 London, 12 February 2014

Jørgen Madsen Lindemann, President & Chief Executive Officer

Modern Times Group MTG AB
Skeppsbron 18
P.O. Box 2094
SE-103 13 Stockholm, Sweden
Registration number: 556309-9158

Modern Times Group (MTG) is an international entertainment 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 net sales of SEK 14.1
billion in 2013. 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 Full Year report 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 13.00 CET on 12
February 2014.