Q2 2014 Interim report January – June

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| Source: Modern Times Group MTG AB
Profits up on record sales

Q2 2014 Highlights

  · Net sales up 13% at constant FX & up 3% on an organic basis
  · Operating income (EBIT) up to SEK 472m (465) when excluding non-recurring
items of SEK -155m (-) and associated company income of SEK 117m (113)
  · Pay-TV Nordic and acquisitions drive revenue and earnings growth despite
soft advertising markets and ongoing investments
  · Total EBIT of SEK 434m (578)
  · Net income of SEK 307m (376) and basic earnings per share of SEK 4.21 (4.98)
  · Cash flow from operations of SEK 491m (472) and net debt position of SEK
987m (206)

Financial Overview

+-------------------------------+-------+-------+-------+-------+-------+
|(SEKm)                         |   2014|   2013|   2014|   2013|   2013|
|                               |Apr-Jun|Apr-Jun|Jan-Jun|Jan-Jun|Jan-Dec|
+-------------------------------+-------+-------+-------+-------+-------+
|Net sales                      |  4,109|  3,605|  7,706|  6,814| 14,073|
+-------------------------------+-------+-------+-------+-------+-------+
|Growth at constant FX          |    13%|     6%|    13%|     4%|     8%|
+-------------------------------+-------+-------+-------+-------+-------+
|Organic growth at constant FX  |     3%|     6%|     4%|     4%|     5%|
+-------------------------------+-------+-------+-------+-------+-------+
|EBIT before associated company |    472|    465|    589|    686|  1,309|
|income and non-recurring items |       |       |       |       |       |
+-------------------------------+-------+-------+-------+-------+-------+
|Margin before associated       |  11.5%|  12.9%|   7.6%|  10.1%|   9.3%|
|company income and non         |       |       |       |       |       |
|-recurring items               |       |       |       |       |       |
+-------------------------------+-------+-------+-------+-------+-------+
|Associated company income *    |    117|    113|    300|    346|    576|
+-------------------------------+-------+-------+-------+-------+-------+
|EBIT before non-recurring items|    589|    578|    890|  1,032|  1,885|
+-------------------------------+-------+-------+-------+-------+-------+
|Non-recurring items (NRI) **   |   -155|      -|   -155|      -|   -147|
+-------------------------------+-------+-------+-------+-------+-------+
|Total EBIT                     |    434|    578|    735|  1,032|  1,738|
+-------------------------------+-------+-------+-------+-------+-------+
|Net Income                     |    307|    376|    466|    710|  1,168|
+-------------------------------+-------+-------+-------+-------+-------+
|Basic Earnings per Share (SEK) |   4.21|   4.98|   6.64|   9.71|  16.39|
+-------------------------------+-------+-------+-------+-------+-------+
|Net debt                       |    987|    206|    987|    206|    772|
+-------------------------------+-------+-------+-------+-------+-------+
|Cash flow from operations      |    491|    472|    685|    741|  1,348|
+-------------------------------+-------+-------+-------+-------+-------+

* Including MTG’s SEK 74m (USD 11.5m) Q1 2014 participation in USD 29.9m of non
-recurring charges incurred by associated company CTC Media in Q4 2013

** Comprising in 2014 the SEK 160m non-cash net impairment charge related to
MTG’s interest in the Ukrainian satellite pay-TV platform; SEK 70m of
organisational restructuring charges and other costs; and the SEK 76m net gain
from the sale of Zitius in Sweden, and in 2013 the non-cash net impairment
related to MTG’s interest in Raduga, the Russian satellite pay-TV platform


President & CEO’s comments

Profitable growth
This quarter has again demonstrated the benefit of the investments that we have
made. Not only have we delivered the highest quarterly sales in the Group’s
history, but also higher operating profits than last year. Secondly, these
results demonstrate the benefit of our uniquely integrated and balanced
combination of on and offline advertising, subscription and content production
businesses. This enables us to monetize rising video consumption levels, and
capitalise on the shift from linear to on-demand viewing with our Viaplay, catch
-up and broader digital businesses. MTGx is accelerating this development and
our clear objective is to be the leading digital entertainment business in each
of our scale markets.

Strategy delivery on track and in line
Both Viaplay in the Nordics and our emerging market wholesale channel business
performed well in the quarter, and our results were boosted by the content
production business. TV advertising market development remains mixed but we grew
our online advertising revenues in all markets. We continue to adjust our cost
bases to the market development, and to maximize the earnings potential in our
traditional businesses so that we can prioritise investments in future growth.
This can be seen clearly in the performance of our combined Nordic businesses.

Content you love
We continue to focus on delivering relevant experiences that engage and excite
consumers around the world. This is why we have recently prolonged our exclusive
rights to Denmark’s Superliga football for an unprecedented six further seasons;
signed the new multi-year, multi-platform and pan-Scandinavian exclusive content
acquisition deal with Sony; launched our TV1000 Russian Kino movie channel in
Israel; and launched our advertising funded eSports service. The quarter ended
with the completion of our acquisition of global youth media brand Trace, which
expands our presence across all of Africa and to 131 countries in total, and
reflects our focus on investing in businesses with relevant content, digital
presence and geographical expansion potential.

Outlook
We continue to expect higher sales and margin expansion in 2014 for the Nordic
pay-TV business. The Emerging Markets pay-TV operations are growing and will
also now include Trace’s results but, as said before, we are impacted by the
devaluation of the Russian and Ukrainian currencies and we are currently
analyzing the impact of Russia’s proposed ban on advertising on pay-TV channels
from 2015. Advertising spending trends across our 11 free-TV markets are mixed
but we will continue to adjust our investments accordingly and to grow our
online shares. Finally, the demand for our own content is strong, and both Nice
Entertainment and Trace will contribute to our development moving forward.

Jørgen Madsen Lindemann
President & Chief Executive Officer

“We are investing in order to be able to monetize rising video consumption
levels and become the leading digital entertainer in each of our markets”


* * *

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 3938
UK:         +44 (0) 20 3427 1900
US:          +1 212 444 0896

The access pin code for the call is 5757201. 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

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


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 six 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 interim report is that which Modern Times Group MTG AB
(publ) shall disclose in accordance with the Securities Market Act and/or the
law on Trading in Financial Instruments, and was published at 13.00 CET on 17
July 2014.