Revenues Up 10 Percent at MTG

STOCKHOLM: Modern Times Group’s first-quarter results show a 10-percent increase in revenues to SEK 3.3 billion ($396 million), while profit for the period fell from last year’s SEK 397 million ($47 million) to SEK 146 million ($17 million).

The company attributed the reduced profit to a SEK 454 million non-cash intangible asset impairment by associated company CTC Media.

Announcing the results, Hans-Holger Albrecht, the president and CEO of MTG, commented: "These results illustrate the benefits of operating a balanced broadcasting business, which combines content ownership and distribution, and generates an almost equal mix of subscription and advertising revenues from multiple channels in multiple territories. Despite the deterioration in the market environment, this successful model has delivered another quarter of double digit sales growth, a 15-percent increase in the group’s underlying operating profitability and an operating margin of over 20 percent. Our media house strategy and increased penetration levels in Scandinavia have enabled us to grow in declining markets, and we are selectively investing to take share in the emerging markets. We continue to adjust our operations to the challenging market conditions, but our position as the primary challenger in most of the markets where we operate provides opportunities to enhance our longer term potential and performance through the downturn. We have strong operating cash flows and our financial position is comfortable with low levels of borrowing and no debt maturities in 2009.”