Modern Times Group-MTG AB: Financial Results for the Period January - December 2001 (with link)


STOCKHOLM, Sweden, Feb. 19, 2002 (PRIMEZONE) -- Modern Times Group MTG AB ("MTG") (Nasdaq:MTGNY)(Stockholmsborsen: MTGA) (Stockholmsborsen: MTGB) today announced its financial results for the full year 2001.


 -- Net sales up 18% to sek 6,402 (5,431) million
 
 -- Total operating income excluding non-recurring items up 106% to
    SEK 375 (182) million
 
 -- Profit before tax increased to SEK 250 (-274) million
 
 -- The digitalisation contributed to a 49% revenue increase and
    substantial cost savings in pay tv
 
 -- Strong operating income growth in modern studios to SEK 79 (3)
    million

Summary (SEK Million)


                             Oct-   Oct-    Jan-Dec Jan-
                             Dec    Dec     2001    Dec
                             2001   2000            2000
 
 Established operations
 Net sales                   1,830  1,654   6,355   5,428
 Earnings before
  depreciation and
   amortisation                328    199     748     432
 Earnings after                264    145     514     192
  depreciation and
   amortisation
 
 New ventures
 Net sales                      22     2       47      3
 Earnings before
  depreciation and             -39    -6      -137    -8
   amortisation
 Earnings after                -39    -9      -139    -10
  depreciation and
   amortisation
 
 Total
 Net sales                   1,852  1,656   6,402   5,431
 Earnings before                                    
  depreciation and             289    192     611     424
   amortisation
 Earnings after                225    136     375     182
  depreciation and
   amortisation
 
 Non-recurring items           -15    -507    -15     -409
 
 Income after financial        221    -380    317     -271
  items*
 
 Fully diluted earnings per   1.70   -4.95   1.82    -4.46
  share (SEK)
 * Excluding financial items relating to subordinated convertible
   debenture loans

Organisational And Financial Reporting Structure

The Group has applied the new recommendations of the Swedish Financial Accounting Standards Council since 1 January 2001, amongst which is recommendation RR15 relating to the treatment of intangible assets. As a result, costs arising from new ventures are no longer capitalised or depreciated. Expenses arising from new ventures, such as the TV channels in Hungary and Russia, are therefore charged to the profit and loss account.

Established operations and new ventures have been split out in the table above in order to provide a more accurate description of the operating businesses. Businesses are considered to be new ventures for the first two years after launch. The new ventures are Viasat3 Hungary, Darial TV in Russia and Viasat+ in Norway within the business area Viasat Broadcasting; Everyday.TV and Everymobile within New Media, as well as Modern Sports & Events and Modern Games within Modern Studios.

The Group structure was reorganised at the end of 2000. This involved the formation of the New Media division and the transfer of TV8 from the Viasat Broadcasting division to MTG Publishing. The New Media division includes the Text TV businesses, the WebAd sales company and MTG's interest in Everyday.com, which are established operations that have been transferred from the Viasat Broadcasting and Modern Interactive divisions respectively. The new ventures that are included in the New Media division are Everyday.TV (digital TV platform) and the mobile internet services provided by Everymobile. The New Media division was integrated into Viasat Broadcasting in January 2002.

In October 2001, MTG subscribed to a private placement of new shares in its former operating subsidiary, Metro International S.A. On a fully diluted basis MTG owns 15% of Metro.

The comparative figures in this report have been restated to take into account these organisational changes and the changes in the Swedish accounting rules.

After the close of the fourth quarter, MTG acquired 36.3% of the shares in the privately owned American company, StoryFirst Communications, Inc., which owns the second largest commercial TV network in Russia as well as shares in six Russian radio stations. The transaction is subject to approval by regulatory authorities.

Additional acquisitions were made after the close of the period. MTG acquired the remaining shares in its TV and Radio operations in Estonia, increasing its ownership to 100%. The companies will be consolidated from 1 January 2002. MTG also took over the Swedish radio stations Lugna Favoriter and Wow 105.5, as well as the newspaper Vision. These companies will be consolidated with effect from 1 February 2002.

Q1 2002 earnings release MTG's financial results for the first quarter of 2002 will be announced on 24 April 2002.

Annual report MTG's annual report is expected to be released in April 2002. It will be available at MTG's head office at Skeppsbron 18, Box 2094, 103 13 Stockholm.

Annual General Meeting

The shareholders' annual meeting will be held on Thursday 16 May 2002 at 09.30 am at Gamla Stans Bryggeri, Tullhus 2, Skeppsbrokajen, in Stockholm.

Dividend

The Board of Directors will not be proposing the payment of a dividend to shareholders for 2001 to the AGM.

This annual statement has not been subject to review by the Company's auditors.

Modern Times Group, MTG AB has six business areas: Viasat Broadcasting (Free-to-air and Pay TV channels in nine countries, and the new media businesses - teletext operations and the Everyday interactive TV, internet and mobile portals), Radio (local and national networks in five countries), Publishing (financial news and information services), Modern Interactive (home shopping, e-commerce and logistics), SDI Media (subtitling and dubbing services), and Modern Studios (content production and rights library).

Modern Times Group MTG AB's class A and B shares are listed on the Stockholmsborsen O-list (symbols: MTGA and MTGB) and ADRs are listed on the NASDAQ National Market (symbol: MTGNY).

This information was brought to you by Waymaker http://www.waymaker.net

The following files are available for download:


 www.waymaker.net/bitonline/2002/02/19/20020219BIT01040/bit0002.doc
 The full Year-End Report
 
 www.waymaker.net/bitonline/2002/02/19/20020219BIT01040/bit0002.pdf
 The full Year-End Report 


            

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