10 February 2011 – 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 fourth quarter and full year ended 31 December 2010.
RECORD RESULTS & INCREASED DIVIDEND
Fourth Quarter Highlights*
Full Year Highlights*
* This financial report includes the effects of the demerger and distribution of former MTG subsidiary CDON Group AB (‘CDON Group’) in December 2010. CDON Group’s results have been excluded from MTG’s operating results and cash flows for 2010 and 2009, with the exception of the reported net income from discontinued operations in the Group’s income statements and the net cash flow to financing activities in the Group’s cash flow statements.
Hans-Holger Albrecht, President and Chief Executive Officer, commented: “MTG has delivered another year of record sales and profits. We generated 12% year on year sales growth at constant exchange rates in 2010 following advertising market growth, further advertising market share gains and net subscriber intake. Operating profits were up 27% for the year when excluding associated company income and the one-off items in 2009, with an increased operating margin of 15%. This demonstrates the significant operating leverage in the business, with our free-TV Scandinavia and pay-TV Nordic businesses reporting increased full year margins of 25% and 18%, respectively.
"We continue to benefit from our balanced mix of advertising and subscription revenues and the synergies of being an integrated free and pay-TV operator with the largest broadcast footprint in Europe. The Scandinavian advertising markets have performed well throughout the year with rising volume and pricing levels, and we also grew our sales at constant exchange rates in the emerging markets where the recovery is still lagging. We now have more than one million premium pay-TV subscribers in the Nordic region and 50 million subscriptions to our mini-pay channels in Central and Eastern Europe and the US. We have added new channels and platforms to our portfolio during the year and our free and pay-TV channels are now more widely available on more broadcast platforms than ever. We have also selectively invested in programming and in our HD, 3D and video-on-demand services.
"Our high levels of cash conversion and flexible financial position are reflected in the decision to propose an increased annual dividend payment of SEK 7.50 per share to this year's AGM. This increase in the pay-out reflects our commitment to delivering enhanced total shareholder returns and follows the more than SEK 2 billion equity dividend of CDON Group shares in December. The demerger and distribution of CDON Group is further evidence of the Group’s streamlined focus on our core broadcasting operations. We continue to review organic and acquisition-led opportunities to invest in the development of the Group’s market presence and competitive positioning.”
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 5051 3786International: +44 (0)20 7138 0824US: +1 212 444 0481The access pin code for the conference is 4351239.
To listen to the conference call online, please go to www.mtg.se.
For further information, please visit www.mtg.se, or contact:
Hans-Holger Albrecht, President & Chief Executive OfficerMathias Hermansson, Chief Financial OfficerTel: +46 (0) 8 562 000 50
Investor & Analyst EnquiriesMatthew HooperTel: +44 (0) 7768 440 414Email: firstname.lastname@example.org
Press EnquiriesBert Willborg Tel: +44 (0) 7912 280 850Email: email@example.com
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 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 Year end 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 10 February 2011.