Q4 2008 - Results for Fourth Quarter and Full Year 2008

Q4 2008 - Results for Fourth Quarter and Full Year 2008

FINANCIAL RESULTS FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED 31 DECEMBER
2008



12 February 2009 - Modern Times Group MTG AB (publ.) (“MTG” or “the Group”) (The
OMX Nordic Exchange Large Cap market: MTGA, MTGB) today announced its financial
results for the fourth quarter and twelve months ended 31 December 2008.


FOURTH QUARTER HIGHLIGHTS

• Group net sales up 18% year on year to SEK 3,845 (3,268) million
• Group operating income up 22% year on year to SEK 746 (611) million with an
operating margin of 19% (19%)
• Group net cash flow from operations more than doubled year on year to SEK 681
(288) million 
• Net income of SEK 528 (458) million 
• Basic earnings per share of SEK 7.50 (6.48)


FULL YEAR HIGHLIGHTS

• Group net sales up 16% year on year to SEK 13,166 (11,351) million
• Group operating income excluding non-recurring items up 28% year on year to
SEK 2,598 (2,027) million, with an increased operating margin of 20% (18%)
• Total Group operating income of SEK 3,671 (2,027) million (including a SEK
1,150 million net gain from the sale of Russian DTV Group and a SEK 76 million
non-cash asset impairment charge in the Online business area)
• Group net cash flow from operations of SEK 1,985 (930) million 
• Net income of SEK 2,927 (1,428) million
• Basic earnings per share of SEK 43.36 (20.35)
• Board of Directors to propose an annual dividend of SEK 5.00 per share 


Hans-Holger Albrecht, President and Chief Executive Officer, commented: “2008
was a record year for MTG, in terms of both sales and profitability. The fourth
quarter was our seventeenth consecutive quarter of double digit year on year
sales growth and we also increased our annual group operating margin to 20% and
doubled our net cash flow from operations. These results reflect the strength of
our geographically diversified and structurally integrated broadcasting
business, which generates subscription and advertising revenue streams in equal
amount and spans content ownership and distribution. The Viasat media house is
typically the primary challenger to incumbents in markets where digitalisation
is causing major structural changes, and we are seizing this opportunity to
increase our penetration levels and take market share.”

“The market environment is considerably more challenging now as we move into
2009 due to the impact of the broad economic slowdown and credit crisis on media
buying budgets and consumer behaviour. These factors are adversely impacting our
businesses but do not change the longer term potential of the markets that we
are operating in, and our commitment to continue to implement our successful
multi-channel multi-territory strategy. We have adjusted our plans to reflect
the change in market conditions and short term outlook but, with challenges come
opportunities, so we are selectively and prudently investing to continue to
build our market positions for the future.”

“With a healthy balance sheet and strong cash flows, we have the financial
flexibility to continue to both invest and return value to shareholders. We are
therefore proposing to pay our third annual dividend.”

***

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 7138 0825
Sweden:	+46 (0) 8 5051 3786
US:		+1 212 444 0481
The access pin code for the conference is 4421559
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 7806 1970
Sweden:	+46 (0) 8 5876 9441
US:		+1 718 354 1112
The access pin code for the replay facility is 4421559#


For further information, please visit www.mtg.se, or contact:

Hans-Holger Albrecht, President & CEO
Mathias Hermansson, CFO
Tel:       		+46 (0) 8 562 000 50
Investor & Analyst Enquiries:
Matthew Hooper: 	+44 (0) 7768 440 414
Oscar Hyléen:	+46 (0) 707 620 024
Email:   		investor.relations@mtg.se 
Press Enquiries:
Bert Willborg	+44 (0) 791 2280 850
Email:   		bert.willborg@mtg.se

Modern Times Group is a leading international entertainment broadcasting group
with the second largest geographical broadcast footprint in Europe. MTG's Viasat
Broadcasting is the largest free-TV and satellite premium pay-TV operator in
Scandinavia and the Baltics, and also operates free-TV channels in the Czech
Republic, Hungary, Slovenia, Bulgaria, Macedonia and Ghana. MTG's TV assets are
broadcast in a total of 29 countries and reach over 100 million people. 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 and Baltic regions.

Modern Times Group MTG AB class A and B shares are listed on the OMX Nordic
Exchange Large Cap market (‘MTGA' and ‘MTGB').

The information in this Interim Report is that 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 12 February 2009.