MTG Records Improved Revenues, Profit in Q3

October 25, 2006 World Screen

STOCKHOLM, October 25: Modern Times Group’s third quarter
revenues rose 24 percent to SEK 2,280 million ($311 million), the company
announced today, with net profit more than doubling to SEK 529 million ($72
million).

The quarter, in which MTG expanded its reach with the
acquisition of PRVA TV in Slovenia, also saw group operating income rise 51
percent to SEK 404 million ($55 million). And the Viasat Broadcasting division
posted a 26-percent revenue gain to SEK 1,857 million ($253 million).

For the nine months ended September 30, 2006, revenues were
up 30 percent to SEK 7,219 million (985 million), and profit rose from SEK 897
million to SEK 1,183 million ($161 million). Viasat Broadcasting’s revenues
rose 36 percent to SEK 5,982 million ($817 million).

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President and CEO Hans-Holger Albrecht said in announcing
the results, “Record third quarter and year to date results again demonstrate
the value in the integrated and geographically diversified structure of our
operating businesses. Our satellite pay-TV business and Central and East
European operations have continued to outperform, with increased market shares
and healthy subscriber intake, whilst lower ratings have impacted on
advertising sales in Sweden and Denmark. The ratings performance of free-to-air
channel TV3 in Sweden and Denmark remains a key focus area for us. However, the
anticipated cost increases in our Scandinavian free-to-air and Nordic pay-TV
businesses were lower than expected.”

He continued, “The completion of the distribution of the
majority of our holding in Metro International demonstrated our ongoing
commitment to generating enhanced shareholder returns, whilst our investments
in the consolidation of P4 Radio, and the acquisition of a new channel in
Slovenia, illustrate our concentration on building market leading positions by
identifying and executing on attractive opportunities to generate future
growth. Our strong and flexible financial structure positions us well to make
further investments and targeted acquisitions as they arise.”