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).
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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