Modern Times Group    MTG    Third Quarter 2011    Financial Results1
2Q3 2011 FINANCIAL RESULTS
Third Quarter 2011Sales Growth & Higher Margins                                                   SEK mn• Sales up 4% y/y ...
First Nine Months 2011Sales & EBIT Growth                                                     SEK mn• Sales up 8% y/y at c...
Operating review
Free-TV ScandinaviaFinancial Highlights                                                     SEK mn• Sales of SEK 984 (922)...
Free-TV ScandinaviaOperating Highlights                                                          Commercial Audience Share...
Pay-TV NordicFinancial Highlights                                                   SEK mn Sales of SEK 1,184 (1,140) mn ...
Pay-TV NordicOperating Highlights                                                                                       Pr...
Free-TV Emerging MarketsFinancial Highlights                                                  SEK mn       Free-TV Emergin...
Free-TV Emerging MarketsOperating HighlightsBaltics                                                50%• Sales up 19% y/y i...
Pay-TV Emerging MarketsFinancial Highlights                                                      SEK mn• Sales of SEK 240 ...
Pay-TV Emerging MarketsOperating Highlights                                                                               ...
Other BusinessesHighlights                                                   SEK mn• Comprises MTG’s Radio, Bet24 and Mode...
15Financial Review
Income Statement•    Depreciation & amortisation charges                                               Q3      Q3     9M  ...
Cash Flow• Change in working capital reflected                                      Q3     Q3    9M       9M              ...
Financial Position • SEK 2,417 (3,500) mn of the Group’s available                                  30 Sep   30 Sep   cred...
Summary• Record sales following growth for all four broadcasting divisions• Continued ad market growth & market share gain...
For further information, please visit www.mtg.se or contact:                       MTG Investor Relations              Tel...
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MTG Q3 2011 presentation final

  1. 1. Modern Times Group MTG Third Quarter 2011 Financial Results1
  2. 2. 2Q3 2011 FINANCIAL RESULTS
  3. 3. Third Quarter 2011Sales Growth & Higher Margins SEK mn• Sales up 4% y/y at constant FX & up 3% y/y at reported FX to SEK 3,106 (3,017) mn 3,500 40%• OPEX up y/y to SEK 2,748 (2,681) mn & up 4% 35% y/y at constant FX 3,000• EBIT before associated company income up 6% 30% 2,500 y/y to SEK 358 (336) mn • Increased operating margin of 12% (11%) 25% 2,000• Total EBIT of SEK 514 (427) mn 20% • Including SEK 156 (91) mn of associated 1,500 company income 15%• Income before tax of SEK 439 (472) mn 1,000 10%• Net income from continuing operations of SEK 306 (339) mn & total net income of SEK 306 500 5% (359) mn• Basic EPS of SEK 4.71 (5.31) & total basic EPS 0 0% of SEK 4.71 (5.63) Q3 2010 Q3 2011 Q3 2011 Financial Results Revenue EBIT* EBIT margin * EBIT excluding associated income3
  4. 4. First Nine Months 2011Sales & EBIT Growth SEK mn• Sales up 8% y/y at constant FX & up 3% at 12,000 40% reported FX to SEK 9,762 (9,484) mn• OPEX of SEK 8,380 (8,195) mn – up 7% y/y at 35% 10,000 constant FX 30%• EBIT before associated company income up 7% y/y to SEK 1,382 (1,288) mn 8,000 25% • Stable operating margin of 14% (14%)• Total EBIT up 17% SEK 1,879 (1,608) mn 6,000 20% • Including SEK 497 (320) mn of associated company income 15% 4,000• Income before tax of SEK 1,791 (1,579) mn 10%• Net income from continuing operations up 14% y/y 2,000 to SEK 1,276 (1,116) mn & total net income of 5% SEK 1,276 (1,182) mn• Basic EPS from continuing operations of SEK 0 0% 18.90 (16.80) 9M 2010 9M 2011 9M 2011 Financial Results • Total basic EPS of SEK 18.90 (17.81) Revenue EBIT* EBIT margin * EBIT excluding associated income4
  5. 5. Operating review
  6. 6. Free-TV ScandinaviaFinancial Highlights SEK mn• Sales of SEK 984 (922) mn in Q3 & SEK 3,153 3,500 50% (3,018) mn for YTD 45% • Up 7% y/y in Q3 & 8% for YTD at 3,000 constant FX 40%• OPEX of SEK 768 (703) mn in Q3 & SEK 2,358 2,500 35% (2,286) mn for YTD • Up y/y at constant FX for both periods 30% 2,000 • Investments in local productions and other 25% programming & y/y effect of launch of TV10 1,500 in Sweden in Sep 2010 20%• EBIT slightly down y/y to SEK 216 (219) mn in 1,000 15% Q3 & up 9% y/y to SEK 795 (732) mn for YTD 10% • EBIT margin of 21.9% (23.8%) in Q3 & 500 25.2% (23.8%) for YTD 5% 0 0% Q3 2010 Q3 2011 9M 2010 9M2011 Revenue EBIT EBIT margin Operating review6
  7. 7. Free-TV ScandinaviaOperating Highlights Commercial Audience Share (15-49)Sweden• Target audience share of 38.4% (38.8%) in Q3 45% • Up from 37.6% in Q2 40% • Launch of Fall programming schedules 35% • Audience share gains for TV8 & TV10 30% 25%Norway 20%• Target audience share of 22.0% (29.1%) 15% • Down from 24.8% in Q2 • Performance reflected impact of new 10% commercial channels launched in Q4 2010 5% • Ongoing investments in programming 0% content with focus on local productions Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2009 2010 2010 2010 2010 2011 2011 2011Denmark Sweden Norway Denmark• Target audience share of 23.1% (24.8%) • Down from 25.7% in Q2 • Performance reflects impact of Danish Operating review general elections • Fall schedules strengthened with new & returning formats7
  8. 8. Pay-TV NordicFinancial Highlights SEK mn Sales of SEK 1,184 (1,140) mn in Q3 & SEK 4,000 50% 3,509 (3,347) mn for YTD 45%  Up 4% y/y in Q3 & 8% for YTD at 3,500 constant FX 40% 3,000 OPEX of SEK 949 (939) mn in Q3 & SEK 2,831 35% (2,733) mn for YTD 2,500  Up y/y at constant exchange rates 30%  Ongoing investments in premium sports 2,000 25% content 20%  Addition of 7 Viasat channels since the 1,500 beginning of 2010 15% 1,000 EBIT up 17% y/y to SEK 234 (201) mn in Q3 & up 10% 10% to SEK 677 (614) mn for YTD 500 5% Increased operating margins of 19.8%(17.6%) in Q3 & 19.3% (18.3%) for YTD 0 0% Q3 2010 Q3 2011 9M 2010 9M 2011 Revenue EBIT EBIT margin Operating review8
  9. 9. Pay-TV NordicOperating Highlights Premium subscribers 1,200• Stable premium subscriber base y/y in Q3 & down 1,000 slightly q/q 800 • Third party premium network subscriber 600 Thousands base up y/y & stable q/q 400 200• Performance reflected: 0 • Ongoing subscriber intake in Sweden offset Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 by increased churn levels in Denmark due to high competition Satellite subscribers 3rd party network subscribers• Premium ARPU up y/y to SEK 4,751 (4,472) mn & up 8% y/y at constant FX • Previously introduced price increases • Rising penetration of value-added services 300 Value added services 250 200 Thousands 150 100 50 Operating review 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 ViasatPlus HDTV Multi-room9
  10. 10. Free-TV Emerging MarketsFinancial Highlights SEK mn Free-TV Emerging Markets• Total sales of SEK 400 (357) mn in Q3 & SEK 1,500 1,418 (1,373) mn for YTD • Up 12% y/y in Q3 & 8% for YTD at 1,000 constant FX 500• OPEX of SEK 476 (432) mn in Q3 & SEK 1,453 (1,472) mn for YTD 0 • Up for both periods at constant FX -500 • Continued strategic programming Q3 2010 Q3 2011 9M 2010 9M 2011 investments across all territories Revenue EBIT• EBIT of SEK -76 (-75) mn in Q3 & SEK 65 mn positive swing to SEK -35 (-100) mn for YTD SEK mn Baltics, Czech Republic & Bulgaria• Baltic, Czech & Bulgarian sales of SEK 352 1,400 (310) mn in Q3 & SEK 1,254 (1,198) mn for YTD 1,100 • Up 14% y/y in Q3 & 9% for YTD at constant FX 800• EBIT of -48 (-49) mn in Q3 & SEK 45 (-22) mn 500 for YTD • EBIT margin of 3.6% for YTD 200 -100 Q3 2010 Q3 2011 9M 2010 9M 201110 Revenue EBIT
  11. 11. Free-TV Emerging MarketsOperating HighlightsBaltics 50%• Sales up 19% y/y in Q3 & 11% for YTD at constant FX 40%• Increased pan-Baltic target audience share of 41.4% (40.5%)• New channel TV8 launched in Lithuania after end 30% of Q3. Targets female 35+ audienceCzech Republic 20%• Sales up 18% in Q3 & 19% for YTD at constant FX & gained significant market share in Q3 10%• Continued significant CSOV gains both y/y and Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 q/q• New channel Prima LOVE now fully included in Estonia (15-49) Latvia (15-49) advertising sales bundle Lithuania (15-49) Czech Republic (15-54)Bulgaria Bulgaria (18-49)• Sales down 3% y/y in Q3 & down 12% for YTD at constant FX due to continued decline in overall TV Operating review ad market & low pricing levels• Increased programming investments with launch on own productions to drive ratings11
  12. 12. Pay-TV Emerging MarketsFinancial Highlights SEK mn• Sales of SEK 240 (228) mn in Q3 & SEK 685 (671) mn for YTD 800 50% • Up 14% y/y in Q3 & 15% for YTD at 45% constant FX 700 • Growth primarily driven by continued y/y 40% subscriber intake on the Ukrainian and 600 35% Russian platforms 500 • Y/y effect on YTD sales of consolidation of 30% 50% of Raduga TV from February 2010 & 400 25% full consolidation of Viasat Ukraine from June 2010 20% 300• OPEX of SEK 227 (223) in Q3 & SEK 643 (589) 15% for YTD – even higher growth at constant FX 200 • Launch of 10 new Viasat channels since 10% beginning of 2010 100 5% • Consolidation of 50% of Raduga TV & 100% of Viasat Ukraine 0 0% Q3 2010 Q3 2011 9M 2010 9M 2011 • Ongoing investments in development of platforms & offering Revenue EBIT EBIT margin• EBIT more than doubled to SEK 13 (6) mn in Q3 Operating review but down to SEK 42 (82) mn for YTD • EBIT margins of 5.5% (2.6%) in Q3 & 6.1% (12.3%) for YTD12
  13. 13. Pay-TV Emerging MarketsOperating Highlights Satellite subscribers 500• 88,000 net new subscribers added y/y • Significant subscriber uptake in Ukraine & 450 growth in both Russian and Baltic Thousands 400 subscriber bases 350• Wholesale mini-pay business subscriptions up 300 31% y/y and up from Q2 2011 250• Viasat History & Viasat Nature documentary 200 channels launched in Uganda and Tanzania Q1 Q2 Q3 Q4 Q1 Q2 Q3 after the end Q3 following signing of a 2010 2010 2010 2010 2011 2011 2011 distribution agreement with digital terrestrial television operator StarTimes Mini-pay TV subscriptions • Channels will also be included on 70,000 StarTimes pay-TV offering in Nigeria. 60,000 Thousands 50,000 40,000 Operating review 30,000 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Mini-pay TV subscriptions13
  14. 14. Other BusinessesHighlights SEK mn• Comprises MTG’s Radio, Bet24 and Modern 1,600 40% Studios operations• Sales of SEK 372 (456) mn in Q3 & SEK 1,225 1,400 35% (1,349) mn for YTD – down 18% y/y & 6% for YTD at constant exchange rates 1,200 30% • Lower licensing and production revenues 1,000 25% for Modern Studios & Strong Q3 2010 for Bet24 due to 2010 World Cup 800 20%• Combined OPEX of 358 (406) mn in Q3 1,143 (1,232) mn for YTD 600 15%• EBIT before associated company income of SEK 400 10% 14 (51) mn in Q3 & SEK 78 (117) mn for YTD • EBIT margins of 3.8% (11.1%) in Q3 & 200 5% 6.4% (8.7%) for YTD 0 0% • Total EBIT of SEK 18 (50) mn in Q3 & 82 Q3 2010 Q3 2011 9M 2010 9M 2011 (122) mn for YTD including associated Revenue EBIT EBIT margin company income of SEK 4 (-1) mn in Q3 & 4 (5) mn for YTD Operating review14
  15. 15. 15Financial Review
  16. 16. Income Statement• Depreciation & amortisation charges Q3 Q3 9M 9M of SEK 47 (53) mn in Q3 & SEK 145 (SEK mn) 2011 2010 2011 2010 (160) mn for YTD Net sales 3,106 3,017 9,762 9,484• Net interest and other financial items of SEK -75 (45) mn in Q3& SEK -88 EBIT before associated company 358 336 1,382 1,288 (-29) mn for YTD income & non-recurring items• Y/y reduction in net interest charges Associated company income 156 91 497 320 to SEK 17 (24) mn in Q3 & Total EBIT 514 427 1,879 1,608 SEK 45 (55) mn for YTD• Y/y change in other financial items Net interest & other financial items -75 45 -88 -29 also included SEK -64 (-) y/y non- Income before tax 439 472 1,791 1,579 cash financial gain from the change in value of the option element of the Net income from continuing 306 339 1,276 1,116 SEK 250 mn CDON Group operations convertible bond & a non-cash Net income from discontinued - 20 - 66 financial gain of SEK 12 (71) mn operations following the new share issues by Net income 306 359 1,276 1,182 CTC Media and the resulting dilution Basic EPS from continuing of MTG’s ownership in the company 4.71 5.31 18.90 16.80 operations Total basic EPS 4.71 5.63 18.90 17.81 Financial Review16
  17. 17. Cash Flow• Change in working capital reflected Q3 Q3 9M 9M (SEK mn) 2011 2010 2011 2010 timing of payments for key sports rights & cash tax payments Cash flow from 345 371 1,334 1,231 operations• No investments in businesses during 9M 2011, compared to SEK 136 mn Changes in working investment in Raduga TV in Q1 2010 & capital -483 -216 -645 -708 SEK 132 mn investment in Viasat Ukraine in Q2 2010 Net cash flow from -138 155 689 523• CAPEX = less than1% of Group net operations sales for the period Cash flow to/from -34 -47 -86 -383• Cash flow from financing activities investing activities included net loan increase of SEK 68 (-90) mn Cash flow to/from 64 -105 -770 -236 financing activities • Cash flow to financing activities of SEK -770 (-236) mn for YTD Cash flow from primarily reflected SEK 498 (363) discontinued operations - 32 - -42 mn dividend payment to MTG – CDON Group shareholders in Q2 Net change in cash & -108 35 -167 -138 cash equivalents Financial Review17
  18. 18. Financial Position • SEK 2,417 (3,500) mn of the Group’s available 30 Sep 30 Sep credit drawn down as at 30 Sep 2011 (SEK mn) 2011 2010 • Net debt of SEK 1,861 (3,031) mn, compared to net debt of SEK 1,716 mn as at 30 Jun 2011 Non-current assets 9,156 8,727 • SEK 4,499 (3,631) mn of available liquid funds Current assets 5,802 6,641 (cash & undrawn facilities) • SEK 2,253 mn book value of 38.2% Total assets 14,958 15,368 shareholding in CTC Media had public equity market value of SEK 3,674 mn at end of Sep 2011 Shareholders’ equity 7,391 5,857 Net debt / EBITDA Long-term liabilities 3,090 4,232 1.2 1.2 1.1 0.8 Current liabilities 4,476 5,278 0.7 0.6 0.7 Total equity & liabilities 14,958 15,368 Financial ReviewQ1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 18
  19. 19. Summary• Record sales following growth for all four broadcasting divisions• Continued ad market growth & market share gains in Scandinavia• Lagging recovery in emerging advertising markets but ongoing audience & market share gains• Nordic pay-TV revenues up with best in class margins• Emerging market pay-TV on track with healthy subscriber & revenue growth• Increased Group operating margins despite ongoing investments in programming & platforms• Healthy cash flow & strong financial position from which to invest further in future growth Summary19
  20. 20. For further information, please visit www.mtg.se or contact: MTG Investor Relations Tel: +44 7768 440 414 / +44 7590 098 188 Email: investor.relations@mtg.se Contact information20

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