MTG Revenues Up 6 Percent

STOCKHOLM: Modern Times Group’s first-quarter revenues gained 6 percent to SEK 3.5 billion ($492.2 million), while net profit more than doubled to SEK 300 million ($41.9 million).

“Our record Q1 sales reflect particularly strong growth for our Scandinavian free-TV and radio operations, which follows further audience and advertising market share gains," said Hans-Holger Albrecht, the president and CEO. "The Nordic and East European pay-TV operations also delivered healthy sales growth following subscriber intake and rising ARPU levels, and the Nordic Internet retailing businesses continued to benefit from their market leading positions and the ongoing shift of retail sales from the high street to the internet. The situation in the East European advertising markets has improved with lower year on year declines, and we have reported stable or higher advertising market shares in each territory.”

He continued: “This growth, combined with strict cost control through the downturn, has enabled us to deliver substantially increased operating and net profits in the quarter. We have continued to convert a high proportion of our earnings into cash flows, which have been used to further develop our businesses by investing in the expansion of our existing operations, consolidating our ownership in key assets, and making targeted acquisitions. Our strong and flexible financial position has also enabled us to proposed an increased dividend payment to our upcoming Annual General Meeting.”

He added: “We have also just announced our intention to demerge our internet retailing business by distributing shares in CDON Group to MTG shareholders in the next 6 to 9 months. The spin-off is a natural step given the Group’s focus on our core broadcasting operations, our commitment to delivering shareholder returns, and the benefit for CDON Group of an independent profile as a high growth regional market leader. At the same time, we are continuing to implement our online digital broadcasting strategy by developing our fast growing Viasat OnDemand online video service, which already has the most competitive online TV content offering in the Nordic region.”