Q1 2010 Interim Report

Q1 2010 Interim Report

20 April 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 first quarter and three months ended 31 March 2010.


First Quarter Highlights

• Net sales up 6% year on year to SEK 3,524 (3,336) million - up 10% year on
year at constant exchange rates
• Free-TV Scandinavia net sales up 11% year on year to SEK 980 (886) million -
up 15% year on year at constant exchange rates  
• Operating income up 36% year on year to SEK 415 (306) million when excluding
associated company income
• Operating income more than doubled year on year to SEK 522 (233) million when
including SEK 107 (-73) million of associated company income
• Pre-tax profit more than doubled year on year to SEK 469 (195) million
• Net income more than doubled year on year to SEK 300 (146) million
• Basic earnings per share more than doubled year on year to SEK 4.60 (2.19)


Hans-Holger Albrecht, President and Chief Executive Officer, commented: “Our
record Q1 sales reflect particularly strong growth for our Scandinavian free-TV
and radio operations, which follows further audience and advertising market
share gains. The Nordic and East European pay-TV operations also delivered
healthy sales growth following subscriber intake and rising ARPU levels, and the
Nordic internet retailing businesses continued to benefit from their market
leading positions and the ongoing shift of retail sales from the high street to
the internet. The situation in the East European advertising markets has
improved with lower year on year declines, and we have reported stable or higher
advertising market shares in each territory.”

“This growth, combined with strict cost control through the downturn, has
enabled us to deliver substantially increased operating and net profits in the
quarter. We have continued to convert a high proportion of our earnings into
cash flows, which have been used to further develop our businesses by investing
in the expansion of our existing operations, consolidating our ownership in key
assets, and making targeted acquisitions. Our strong and flexible financial
position has also enabled us to proposed an increased dividend payment to our
upcoming Annual General Meeting.

“We have also just announced our intention to demerge our internet retailing
business by distributing shares in CDON Group to MTG shareholders in the next 6
to 9 months. The spin-off is a natural step given the Group's focus on our core
broadcasting operations, our commitment to delivering shareholder returns, and
the benefit for CDON Group of an independent profile as a high growth regional
market leader. At the same time, we are continuing to implement our online
digital broadcasting strategy by developing our fast growing Viasat OnDemand
online video service, which already has the most competitive online TV content
offering in the Nordic region.”

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:
International: +44 (0)20 7806 1950
Sweden: +46 (0)8 5352 6408
US: +1 212 444 0412
The access pin code for the conference is 1446404

To listen to the conference call online, please go to www.mtg.se.

A replay facility will be made available for 7 days after the conference call. 

To access the replay, please dial:
International: +44(0) 20 7111 1244
Sweden: +46 (0)8 5051 3897
US: +1 347 366 9565
The access pin code for the replay facility is 1446404#

***

For further information, please visit 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 
                                                                                
   
Press Enquiries
Bert Willborg	
Tel: +44 (0) 7912 280 850
Email: 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 20 April 2010.