MTG Releases Q2 Results

STOCKHOLM, July 22: Modern
Times Group’s revenues for the second quarter gained 17 percent to SEK 3.3
billion ($555.8 million), while net profit soared from SEK 362 million ($60.6
million) to SEK 1.6 billion ($267.7 million).

For the first half of the
year, meanwhile, revenues were up 16 percent to SEK 6.4 billion ($1.1 billion),
with a net income of SEK 2 billion ($334.2 million), up from the previous
year’s SEK 678 million ($113.5 million).

Announcing the results, Hans-Holger Albrecht, MTG’s president and CEO, said: “The results for
the second quarter and first half of 2008 are again at record levels, both in
terms of sales and profitability. This quarter marks the 15th consecutive
quarter of double-digit year-on-year sales growth by MTG. The Q2 performance
reflects a substantial market out-performance by our free-TV channel assets,
which have continued to take market share and benefit from structural changes
and exposure to high-growth emerging territories. Our pay-TV operations are
benefiting from rising ARPU levels, the addition of new channels and services
and our expansion on to new distribution platforms. Costs have remained under
control and we are generating healthy cash flows. Our integrated structure as
content owner and distributor, our balance between subscription and advertising
revenues, and our geographically diversified market presence, position us well
to capitalize on the changing landscape in the media industry.”

Albrecht concluded: “The
results clearly demonstrate that we are on track with our five-year strategic
goals, whilst our net cash position provides the flexibility to invest in new
businesses and further enhance shareholder returns moving forward.”

—By Mansha Daswani