Q4 & Full Year 2011 Report

Q4 & Full Year 2011 Report

9 February 2012 – 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 2011.

Record Sales, Increase in Net Cash Flow from Operations and Higher Annual
Dividend

Fourth quarter Highlights [1]

  · Net sales up 3% year on year at constant and reported exchange rates to SEK
3,711 (3,618) million
  · Operating income of SEK 551 (653) million when excluding associated company
income and non-recurring items
  · SEK -3,182 (-) million of non-recurring items, primarily relating to
Bulgarian broadcasting goodwill impairment
  · Total operating income of SEK -2,517 (746) million including SEK 114 (93)
million of associated company income and SEK -3,182 (-) million of non-recurring
items
  · Income before tax of SEK -2,519 (741) million
  · Net income from continuing operations of SEK -2,564 (634) million and total
net income of
  · SEK -2,564 (2,359) million
  · Basic earnings per share from continuing operations of SEK -38.87 (9.40) and
total basic earnings per share of SEK -38.87 (35.43)
  · Net cash flow from operations up 10% year on year to SEK 1,107 (1,009)
million including receipt of SEK 174 (131) million (USD 26 (19) million) of
dividend payments from associated company CTC Media

Full Year Highlights [1]

  · Net sales up 6% year on year at constant exchange rates and up 3% year on
year at reported exchange rates to SEK 13,473 (13,101) million
  · Operating income of SEK 1,933 (1,941) million when excluding associated
company income and non-recurring items
  · Total operating income of SEK -637 (2,355) million when including SEK 611
(413) million of associated company income and SEK -3,182 (-) million of
non-recurring items
  · Income before tax of SEK -727 (2,321) million
  · Net income from continuing operations of SEK -1,289 (1,750) million and
total net income of SEK -1,289 (3,541) million
  · Basic earnings per share from continuing operations of SEK -19.98 (26.22)
and total basic earnings per share of SEK -19.98 (53.34)
  · Net cash flow from operations up 17% year on year to SEK 1,797 (1,533)
million including receipt of SEK 319 (216) million (USD 49 (31) million) of
dividend payments from associated company CTC Media
  · Board of Directors to propose 20% increase in annual cash dividend to SEK
9.00 (7.50) per share to AGM in May 2012 and has adopted dividend policy to
distribute at least 30% of recurring net profit to shareholders as an annual
ordinary dividend

Hans-Holger Albrecht, President and Chief Executive Officer, commented: “All
four of our broadcasting businesses reported growing revenues in the quarter and
for the full year, as we reported record sales for both periods despite the
broader economic uncertainty that has prevailed during the year. Our net cash
flow from operations was up 17% year on year in 2011 and we ended the year with
substantially reduced borrowings, which is why the Board is proposing an
increased dividend and adopting a dividend policy moving forward. We are a
growth company and are investing in our existing operations, as well as seeking
opportunities to establish and acquire new businesses.”

“Sales for our Scandinavian free-TV operations were up year on year as the
advertising markets continued to grow. We have some ratings issues, which are
being addressed, and our 2012 Spring schedules are now being launched. Our
Nordic pay-TV subscriber base continues to grow and our Viaplay online service
is developing according to plan. The emerging market free-TV operations have
taken share and outperformed in advertising markets that are still lagging the
recovery in western Europe, whilst our emerging market pay-TV operations are
reporting continued strong subscriber intake. Our businesses have some of the
highest margins in the European broadcasting industry despite the fact that we
are continuing to invest in programming content, new technologies and subscriber
acquisition.”

“Our fourth quarter results were impacted by a number of non-recurring and
primarily non-cash items following our year-end impairment tests, but our
underlying profitability and cash flows remain healthy and we are continuing to
explore new growth opportunities.”

* * *

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 5876 9445
UK:                +44 (0)20 7136 2051
US:                +1 646 254 3367

The access pin code for the call is 6818049

To listen to the conference call online and for further information please go to
www.mtg.se.

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

Matthew Hooper, Head of Corporate Communications
Tel:      +44 (0) 7768 440 414
Email: investor.relations@mtg.se / press@mtg.se

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London, 9 February 2012

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

Modern Times Group is an international entertainment broadcasting Group with the
largest geographical broadcast footprint in Europe. MTG's Viasat Broadcasting
operates 29 free-TV channels in 11 countries and 38 pay-tv channels in 34
countries. The pay-tv channels are distributed on Viasat’s own satellite
platforms in 9 countries, as well as on third party broadcast networks
(including cable, satellite and IPTV) and over the open internet. MTG is also
the largest shareholder in Russia’s leading independent television broadcaster
(CTC Media – Nasdaq: CTCM).

Modern Times Group is a growth company and generated SEK 13.5 billion of sales
and SEK 2.5 billion of operating income excluding non-recurring items in 2011.
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 2011 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 9 February 2012.

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[1] This financial report includes the effects of the demerger and distribution
of former MTG subsidiary CDON Group in December 2010. CDON Group’s results have
been excluded from MTG’s operating results and cash flows for 2010, 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.