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Modern Times Group A — Earnings Release 2009
Dec 18, 2009
3079_rns_2009-12-18_4b44360b-8525-4af2-aa0b-0435f8d20232.pdf
Earnings Release
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FOR IMMEDIATE RELEASE 18 December 2009
MTG TO RECOGNISE SEK 3.4 BILLION OF ONE-OFF COSTS
Modern Times Group MTG AB (publ.) ('MTG' or 'the Group'), the international entertainment broadcasting group, today announced that it will recognise approximately SEK 3,361 million of one-off costs in its results for the fourth quarter and full year 2009. These costs primarily relate to the impairment of the Group's Bulgarian broadcasting assets. The impairment reflects the deterioration in the economic and financial climate and the challenging advertising market conditions, and follows the recent completion of the Group's annual asset impairment test.
The one-off costs will be included in the Group's results for the fourth quarter and twelve months ended 31 December 2009. The costs will be reported as a separate line item above the operating profit (EBIT) line in the Group's consolidated income statements, and as an adjustment to intangible assets on the Group's consolidated balance sheets.
EUR 296 million (approximately SEK 3,151 million) of the one-off costs relate to the impairment of the goodwill arising from the Group's acquisition of 100% of Nova Televizia in Bulgaria for EUR 620 million in 2008.
The Group will also recognise approximately SEK 209 million of one-off costs relating to a reduction in the goodwill balances of the Group's Slovenian free-TV broadcasting operations; one-off costs for the Playahead.com online social networking business; and the write-down of programming-related assets by the Group's Baltic free-TV broadcasting operations.
Hans-Holger Albrecht, President and CEO of MTG, commented: "Our Bulgarian business has performed above expectations in terms of increasing its audience and market shares during the year. However, the adverse changes in the operating environment have delayed the anticipated development of the business, and we have now adjusted the value of our assets accordingly. These impairment charges therefore primarily reflect the sharp deterioration in the economic and financial climate over the last year, which has negatively impacted advertising buying and asset pricing. The write-downs do not affect the Group's financial strength."
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For further information, please visit www.mtg.se or contact:
Hans-Holger Albrecht, President & CEO Tel: +46 (0) 8 562 000 50
Investor & Analyst Enquiries: Matthew Hooper: +44 (0) 7768 440 414 Oscar Hyléen +46 (0) 707 62 00 24 Email: [email protected]
| Media Enquiries: | |
|---|---|
| Bert Willborg | +44 (0) 791 2280 850 |
| Email: | [email protected] |
Modern Times Group is a leading international entertainment broadcasting group with the second largest geographical broadcast footprint in Europe. MTG's Viasat Broadcasting is the largest free-TV and satellite premium pay-TV operator in Scandinavia and the Baltics, and also operates free-TV channels in the Czech Republic, Hungary, Slovenia Bulgaria, Macedonia and Ghana. MTG's TV assets are broadcast in a total of 30 countries and have 125 million viewers. MTG is also the major shareholder in Russia's largest independent television broadcaster (CTC Media - Nasdaq: CTCM), and the number one commercial radio operator in the Nordic and Baltic regions.
Modern Times Group MTG AB Class A and B shares are listed on Nasdaq OMX Stockholm's Large Cap market ('MTGA' and 'MTGB').
The information in this announcement is that which Modern Times Group MTG AB is required to disclose under the Securities Market Act and/or the Financial Instruments Trading Act. It was released for publication at 08.00 CET on 18 December 2009.