MTG Records Profit, Revenue Increases

STOCKHOLM: Modern Times Group has reported a fourth-quarter profit of SEK 528 million ($62.6 million), a 15-percent increase, with revenues up 18 percent to SEK 3.8 billion ($456.2 million).

The group posted equally positive results in the year, with profit doubling to SEK 2.9 billion and revenues up 16 percent to SEK 13.2 billion.

Hans-Holger Albrecht, the president and CEO of MTG, 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 percent 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 digitalization is causing major structural changes, and we are seizing this opportunity to increase our penetration levels and take market share."

He continued: "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 multichannel 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."