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Q1 2011 Financial presentation
 

Q1 2011 Financial presentation

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Modern Times Group MTG AB

Modern Times Group MTG AB

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    Q1 2011 Financial presentation Q1 2011 Financial presentation Presentation Transcript

    • Modern Times Group MTG AB Q1 2011 Financial Results1
    • 2Q1 2011 Financial Results
    • Q1 201110% Sales Growth at Constant FX SEK mn• Sales of SEK 3,125 (3,054) mn 3,500 50% & up 10% y/y at constant FX• OPEX up to SEK 2,693 (2,677) mn & 45% 3,000 up 8% at constant FX 40%• Operating income up 15% y/y to SEK 432 (377) mn – excluding SEK 253 (107) mn 2,500 35% of associated income 30%• Total operating income up 42% y/y to SEK 2,000 684 (483) mn 25%• Pre-tax profit up 54% y/y to SEK 671 1,500 20% (436) mn• Net income from continuing operations 1,000 15% up 78% y/y to SEK 490 (275) mn 10%• Increased quarterly dividend payment of 500 SEK 61 (28) mn from CTC Media 5% Q1 2011 Financial Results 0 0% Q1 2010 Q1 2011 Revenue EBIT* EBIT margin3 * EBIT excluding associated income
    • Operating review
    • Free-TV ScandinaviaFinancial Highlights SEK mn• Sales of SEK 1,023 (980) mn in Q1 1,200 50% & up 11% at constant FX 45% 1,000• Lower OPEX of SEK 763 (764) mn y/y 40% in Q1 despite 35% • Ongoing programming investments 800 • Launch of TV10 channel in Sweden 30% in September 2010 600 25%• Operating income up 21% y/y to SEK 260 20% (216) mn 400 15% in Q1 10% 200• Increased operating margins of 25% 5% (22%) in Q1 0 0% Q1 2010 Q1 2011 Operating review Revenue EBIT EBIT margin5
    • Free-TV ScandinaviaOperating Highlights Commercial Audience Share (15-49)Sweden 50%• Target audience share of 33.8% (36.1%) in Q1 • Reflected programming investments & early 40% Spring schedule launch by commercial market leader• Sports focused channel TV10 was launched in 30% September 2010 & continued to grow audience share 20%Norway 10%• Target audience share of 22.9% (25.8%) in Q1 • Reflected year on year impact of launch of 0% 2 new channels by competitors in Q4 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2009 2010 2010 2010 2010 2011Denmark Sweden Norway Denmark• Target audience share of 25.4% (24.2%) in Q1 • Continued success of local productions • Both TV3+ and TV3 PULS increased their Operating review CSOV y/y, with stable CSOV for TV36
    • Pay-TV NordicFinancial Highlights SEK mn• Sales of SEK 1,139 (1,092) mn in Q1 1,200 50% & up 10% at constant FX 45% 1,000• OPEX of SEK 924 (900) mn in Q1 40% • Ongoing investments in premium 35% 800 sports content 30% • Addition of 7 new channels since 600 25% beginning of 2010 20%• Operating income up 12% y/y to SEK 215 400 15% (191) mn in Q1 10% 200 5%• Increased operating margins of 19% (18%) in Q1 0 0% Q1 2010 Q1 2011 Revenue EBIT EBIT margin Operating review7
    • Pay-TV NordicOperating Highlights 1,200• 35,000 net new premium subscribers added y/y 1,000• Continued growth in value added services 800 Thousands subscribers 600• Premium DTH subscriber base down 400 slightly y/y & reflected net subscriber intake in Sweden offset by net declines in 200 Norway & Denmark 0• Viaplay multi-screen on-demand pay-TV Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 service launched in Scandinavia at DTH satellite subscribers 3rd party network subscribers beginning of March & enables Viasat 250 subscribers to use a single ID and password to access Viasat pay-TV content 200 on any internet connected device Thousands 150• Premium ARPU up y/y to SEK 4,445 (4,356) & up 8% y/y at constant FX 100 50 Operating review 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 20118 HDTV subscribers ViasatPlus subscriptions Multi-room subscriptions
    • Free-TV Emerging MarketsFinancial Highlights SEK mn Free-TV Emerging Markets• Total sales of SEK 420 (433) mn in Q1 500 & up 6% y/y at constant FX 400 • Market share gains in almost all 300 countries 200• OPEX of SEK 451 (499) mn in Q1 100 • Slightly down y/y at constant FX 0 • Selective programming investments -100• More than halved EBIT loss of -31 (-66) Q1 2010 Q1 2011 mn in Q1 Revenue EBIT• Baltic, Czech & Bulgarian sales of SEK SEK mn Baltics, Czech Republic & Bulgaria 450 371 (378) mn in Q1 & up 6% in Q1 at constant FX 350• Combined OPEX of SEK 373 (415) mn in 250 Q1 150• Almost break-even EBIT of SEK -3 (-37) 50 mn in Q1 Operating review -50 Q1 2010 Q1 2011 Revenue EBIT9
    • Free-TV Emerging MarketsOperating Highlights 50%Baltics• Sales up 13% y/y in Q1 at constant FX• Increased combined pan-Baltic target CSOV of 40% 40.4% (38.7%)• Sales cooperation agreement with Russian 30% channel RTR Planeta in Latvia & Estonia – RTR added to bundle & targets Russian speaking audiences 20%Czech Republic 10%• Sales up 14% y/y in Q1 at constant FX• Significantly higher CSOV y/y for both channels• Prima LOVE launched on 8 March & focused on 0% female demographic between 15 and 44 y/o Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2009 2010 2010 2010 2010 2010 2011Bulgaria Estonia (15-49) Latvia (15-49)• Sales declined 13% y/y in Q1 Lithuania (15-49) Czech Republic (15-54)• Selective investments in programming content & Bulgaria (18-49) Operating review ongoing work to strengthen programming schedules10
    • Pay-TV Emerging MarketsFinancial Highlights SEK mn• Sales of SEK 215 (218) mn in Q1 250 50% & up 11% at constant FX 45%• OPEX of SEK 207 (178) mn in Q1 200 40% • Launch of 6 new channels since beginning of 2010 including Nova 35% Sport in Bulgaria & African channels 150 30% • Consolidation of 50% of Raduga TV 25% • Consolidation of 100% of Viasat Ukraine 100 20% 15%• Operating income of SEK 7 (40) mn in Q1 50 10%• Operating margins of 3% (18%) in Q1 5% 0 0% Q1 2010 Q1 2011 Operating review Revenue EBIT EBIT margin11
    • Pay-TV Emerging MarketsOperating Highlights Satellite subscribers• 30,000 net new premium subscribers 300 added y/y 250 Thousands • Continued strong subscriber intake 200 on Ukrainian platform 150• 75,000 basic subscribers added y/y 100 following growth on Raduga TV DTH 50 platform 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Basic DTH Premium DTH• Wholesale mini-pay business added almost 14 million subscriptions y/y & Mini-pay TV subscriptions almost 8 mn new subscriptions q/q 70,000 60,000 Thousands• Four pay-TV channels launched in Africa 50,000 at end of February 2011 – available to 40,000 subscribers in Nigeria & Kenya 30,000 Operating review 20,000 10,000 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 201112 Mini-pay TV subscriptions
    • Other BusinessesHighlights SEK mn• Comprises MTG’s Radio, Bet24 and 450 30% Modern Studios businesses• Sales of SEK 400 (410) mn in Q1 400 & up 4% at constant FX 25%• Combined OPEX of SEK 380 (385) mn 350 in Q1 300 20%• Operating income down 19% y/y in Q1• Operating margin of 5% (6%) in Q1 250 15% 200 150 10% 100 5% 50 0 0% Operating review Q1 2010 Q1 2011 Revenue EBIT EBIT margin13
    • 14Financial Review
    • Income Statement• Associated company income Q1 Q1 primarily comprises associated (SEK mn) 2011 2010 income from 38.2% shareholding Net sales 3,125 3,054 in CTC Media & amounted to SEK 253 (105) mn in Q1 Operating income before associated 432 377• Depreciation & amortisation company income & non-recurring items charges of SEK 49 (54) mn in Q1 Associated company income 253 107• Net interest and other financial Total operating income 684 483 items of SEK -13 (-48) mn in Q1• Year on year reduction in net Net interest & other financial items -13 -48 interest charges to SEK 14 (15) Income before tax 671 436 mn in Q1• Y/Y change in other financial items Net income from continuing operations 490 275 also included SEK 2 mn in Q1 non-cash gain following the issue - 25 of new shares by CTC Media, Inc Net income contribution from CDON Group and the resulting dilution of the 490 300 Total net income Group’s ownership in CTC Media. Basic EPS 7.35 4.60• Number of total outstanding shares unchanged at 66,342,124 at end of March 2011 Financial Review15
    • Cash Flow• Change in working capital reflected Q1 Q1 normal seasonal effects, including (SEK mn) 2011 2010 timing differences in the payments of accounts receivables and payables Cash flow from operations 462 313• No investments in shares during Q1, compared to SEK 136 mn in Q1 Changes in working capital -339 -153 2010 to acquire 50% of Raduga TV• CAPEX = approximately 1% of Group net sales for the period Net cash flow from operations 123 160• Cash flow from/to financing activities primarily reflected - paying down of SEK 288 mn of the Group’s Cash flow to/from investing activities -32 -184 revolving credit facility. Cash flow to/from financing activities* -189 240 Net change in cash & cash -98 132 equivalents Financial Review16
    • Financial Position• SEK 2.4 (3.7) bn of Group’s available 31 Mar 31 Mar credit drawn down as at 31March (SEK mn) 2011 2010 2011• Net debt of SEK 1.9 (2.8) bn, Non-current assets 8,566 8,968 compared to net debt of SEK 2.0 bn as at 31 Dec 2010 Current assets 5,339 5,892• SEK 4,568 (3,770) mn of available liquid funds (cash & undrawn facilities) Total assets 13,905 14,860• SEK 1.8 bn book value of 38.2% shareholding in CTC Media had public equity market value of SEK 8.9 bn at end of 2010 = surplus of SEK 7.1 bn Shareholders’ equity 6,538 5,767 Net debt / EBITDA 1.2 Long-term liabilities 3,054 4,353 1.2 1.1 0.8 0.7 Current liabilities 4,313 4,739 Total equity & liabilities 13,905 14,860 Financial ReviewQ1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 201117
    • Summary• Record sales & profits• Free-TV Scandinavia y/y sales growth of 11% in Q1 excluding FX• More than halved operating loss in Free-TV Emerging Markets in Q1; recovery still lagging• Continued Premium DTH ARPU growth y/y• Ongoing investments in Emerging Markets pay-TV platforms• Continued high cash conversion levels & healthy balance sheet with reduced net debt y/y Summary18
    • For Further Information, please visit www.mtg.se or contact: MTG Investor Relations Tel: +46 73 699 29 91 / +44 7768 440 414 / +44 779 113 84 86 Email: investor.relations@mtg.se Contact information19