Q3 2008 - Results for Period Ending 30 September 2008
MODERN TIMES GROUP MTG AB
FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2008
21 October 2008 – 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 third quarter and nine months ended 30 September 2008.
THIRD QUARTER HIGHLIGHTS
• Group net sales up 13% year on year to SEK 2,960 (2,612) million
• Group operating income up 38% year on year to SEK 574 (416) million with an increased operating margin of 19% (16%)
• Group net cash flow from operations up 49% year on year to SEK 275 (185) million
• Net income up 39% year on year to SEK 405 (292) million
• Basic earnings per share up 38% year on year to SEK 6.07 (4.39)
• EUR 620 million acquisition of 100% of Nova Televizia in Bulgaria (completed after the end of the quarter)
• New SEK 3.0 billion credit facility secured to finance acquisition of Nova Televizia and provide continued financial flexibility
NINE MONTH HIGHLIGHTS
• Group net sales up 15% year on year to SEK 9,320 (8,083) million
• Group operating income excluding non-recurring items up 31% year on year to SEK 1,852 (1,416) million, with an increased operating margin of 20% (18%)
• Total Group operating income of SEK 2,925 (1,416) 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 1,304 (642) million
• Net income of SEK 2,400 (970) million
• Basic earnings per share of SEK 35.87 (13.88)
Hans-Holger Albrecht, President and Chief Executive Officer, commented: “We have delivered another quarter of record results with strong double digit organic sales growth, healthy margins, and continued investment in existing and new businesses.
Our multi-channel media house strategy has generated considerable momentum in the developed and highly competitive Nordic markets, with increasing penetration levels, further viewing and market share gains, and the continued development of our channel portfolio. Our channels are now more broadly available than ever and we have added even more content and services to our DTH pay-TV platform. The results demonstrate the potential of our strategy, which we are also applying in our emerging market operations. The addition of Nova in Bulgaria is in line with the strategy to invest in well placed assets in high growth emerging territories, and the integration with our existing Bulgarian business will create a scale and well-differentiated market position.
We remain on track to deliver the five year strategic objectives set in 2007, and retain the financial flexibility after the Nova acquisition to continue to invest in the expansion of our businesses and enhance shareholder returns moving forward.”
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 1966
Sweden: +46 (0) 8 5051 3643
US: +1 718 354 1391
The access pin code for the conference is 5604659
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 5604659#
For further information, please visit www.mtg.se or contact:
Hans-Holger Albrecht, President & CEO
Mathias Hermansson, Chief Financial Officer
Tel: +46 (0) 8 562 000 50
Investor & Analyst Enquiries – Matthew Hooper / Oscar Hyléen
Tel: +44 (0) 7768 440 414 / +46 (0) 707 620 024
Press Enquiries – Bert Willborg
Tel: +44 (0) 791 2280 850