Modern Times Group A — Earnings Release 2011

Apr 18, 2011

18 April 2011 – Modern Times Group MTG AB (publ.) ("MTG" or "the Group") (Nasdaq OMX Stockholm Large Cap Market: MTGA, MTGB) today announced its financial results for the first quarter ended 31 March 2011.

Record Results – Double Digit Sales Growth & Higher Margins

First Quarter Highlights1

• Net sales up 10% year on year at constant exchange rates and up 2% year on year at reported exchange rates to SEK 3,125 (3,054) million
• Operating income up 15% year on year to SEK 432 (377) million, with increased operating margin of 14% (12%), when excluding SEK 253 (107) million of associated company income
• Total operating income up 42% year on year to SEK 684 (483) million
• Pre-tax profits up 54% year on year to SEK 671 (436) million
• Net income from continuing operations up 78% year on year to SEK 490 (275) million
• Total net income up 63% year on year to SEK 490 (300) million
• Basic earnings per share from continuing operations up 74% year on year to SEK 7.35 (4.22)
• Total basic earnings per share up 60% year on year to SEK 7.35 (4.60)
• Increased quarterly dividend payment of SEK 61 (28) million from CTC Media, Inc.

Hans-Holger Albrecht, President and Chief Executive Officer, commented: "Our Q1 sales and operating profits are at record levels following 10% sales growth at constant exchange rates and a 15% increase in operating income excluding associates. All of our business segments delivered sales growth at constant exchange rates and the group operating margin increased to 14% excluding associates.

"The Scandinavian TV advertising markets have continued their strong development with price increases in each country, which enabled us to generate 11% sales growth at constant exchange rates and a 25% operating margin for our free-TV business, whilst our Nordic pay-TV Nordic business grew its sales by 10% at constant exchange rates and delivered an increased margin of 19%. The recovery in advertising spending in the emerging markets is lagging and, with the exception of the Baltics, we are yet to see a return to sustained market growth, but we are taking market share in almost all of our operating territories. At the same time, the profits that we are making in our

¹ This financial report includes the effects of the demerger and distribution of former MTG subsidiary CDON Group AB ('CDON Group') in December 2010. CDON Group's results have been excluded from MTG's operating results and cash flows for 2010, with the exception of the reported net income from discontinued operations in the Group's income statements and the net cash flow to financing activities in the Group's cash flow statements.

emerging markets wholesale pay-TV channel business, which now has over 58 million subscriptions, are being reinvested into the development of our exciting new satellite platforms in Ukraine and Russia, which are developing according to plan.

"Our content is today more broadly available than ever and we have the largest geographical broadcast footprint in Europe. Our 28 free-TV channels in 11 countries, 38 pay-tv channels in 32 countries, and satellite platforms in 9 countries, attract a total of 125 million viewers. In the first quarter alone, we launched a new free-TV channel in the Czech Republic, introduced several new HD channels and produced the first live 3D broadcast of a sports event in Scandinavia, launched 4 new pay-TV channels in Africa, and fully introduced our Viaplay online on-demand video streaming service that is available to any web-connected device in Scandinavia.

"All in all then, we are on track with our strategic objectives and are maintaining our discipline of investing in long term and profitable growth. We have a healthy financial position and have used our cash flows to invest in our existing operations, expand into new areas, further reduce our already low gearing levels, and propose an increased annual dividend. We continue to review opportunities to enhance our competitive market positions and enter attractive new markets."

Significant Events

CTC Media, Inc. published its financial results for the full year 2010 on 1 March 2011, and announced its intention to pay aggregate cash dividends of USD 100 million in 2011 in four quarterly instalments. The first instalment of USD 0.16 per share, or a total of approximately USD 25 million, was paid on 28 March 2011. MTG holds 60,008,800 CTC Media shares or 38.2% of the company's issued and outstanding number of shares, and therefore received a dividend payment of SEK 61 million (USD 9.6 million) in the first quarter.

Financial Summary

(SEK million)	Jan-Mar 2011	Jan-Mar 2010	Change
Net sales	3,125	3,054	2%
Operating income before associated company income	432	377	15%
Associated company income *	253	107	137%
Total operating income (EBIT)	684	483	42%
Net interest & other financial items	-13	-48	-
Income before tax	671	436	54%
Net income from continuing operations	490	275	78%
Net income contribution from discontinued operations	-	25	-
Total net income	490	300	63%
Basic earnings per share from continuing operations (SEK)	7.35	4.22	74%
Total basic earnings per share (SEK)	7.35	4.60	60%
Total diluted earnings per share (SEK)	7.29	4.53	61%
Total assets	13,905	14,860	-6%

* Including MTG's Q1 2010 participation in USD 47.3 million of non-recurring costs incurred by associated company CTC Media in the fourth quarter of 2009

Operating Review

Group sales were up 10% year on year at constant exchange rates in the first quarter, and each of the Group's business segments reported year on year sales growth at constant exchange rates.

Group operating costs increased year on year to SEK 2,693 (2,677) million and were up 8% year on year at constant exchange rates. This reflected the launch or re-launch of 5 free-TV channels and the addition of 10 new pay-TV channels since the beginning of 2010, ongoing programming investments in Scandinavia and the Emerging Markets, the signing or renewal of key sports rights acquisition contracts, and the investments in the Ukrainian and Russian pay-TV platforms. Group depreciation and amortisation charges totalled SEK 49 (54) million in the first quarter.

When excluding associated company income, the Group reported a 15% year on year increase in operating profits to SEK 432 (377) million in the first quarter, with an increased operating margin of 14% (12%) for the period. Total operating income therefore amounted to SEK 684 (483) million.

Net interest and other financial expenses amounted to SEK 13 (48) million in the quarter and included a year on year reduction in net interest expenses to SEK 14 (15) million. The financial items included a SEK 4 million non-cash financial gain reflecting the change in value of the option element of the SEK 250 million CDON Group bond, and a non-cash financial gain of SEK 2 (-18) million following the issue of new shares by CTC Media and the resulting dilution of the Group's ownership in CTC Media.

The Group therefore reported a 54% year on year increase in pre-tax profits to SEK 671 (436) million in the first quarter.

Group tax charges totalled SEK 181 (161) million in the first quarter, and the Group consequently reported a 78% year on year increase in net income from continuing operations to SEK 490 (275) million for the period. The Group reported SEK 25 million of net income from discontinued operations (former subsidiary CDON Group AB that was distributed to shareholders in December 2010) in the first quarter of 2010, and total net income therefore increased by 63% year on year to SEK 495 (300) million.

The weighted average number of shares outstanding was 66,342,124 (65,908,541) during the first quarter, and the total number of outstanding shares, which excludes the 1,065,000 shares held by MTG, was unchanged at 66,342,124 at the end of the reporting period. Group basic earnings per share from continuing operations grew by 74% year on year to SEK 7.35 (4.22) for the quarter, while total basic earnings per share increased by 60% to SEK 7.35 (4.60) for the period.

11% year on year Sales Growth at constant exchange rates & 25% Operating Margin
(SEK million)	Jan-Mar 2011	Jan-Mar 2010	Change	Change at constant exchange rates
Net sales	1,023	980	4%	11%
Operating income	260	216	21%
Operating margin	25%	22%

Free-TV Scandinavia

Sales for the Scandinavian free-TV operations were up 11% year on year in the quarter at constant exchange rates, as the TV advertising markets in each of the three countries continued to grow year on year.

Total operating costs amounted to SEK 763 (764) million in the first quarter, but were up year on year at constant exchange rates following ongoing programming investments and the launch of the TV10 channel in Sweden in September 2010.

The combined operations reported a 21% year on year increase in operating profits in the first quarter, with an increased operating margin of 25% (22%).

Commercial share of viewing (%) (15-49)	Jan-Mar 2011	Oct-Dec 2010	Jan-Mar 2010
Sweden (TV3, TV6, TV8, TV10)	33.8	35.2	36.1
Norway (TV3, Viasat4)	22.9	23.1	25.8
Denmark (TV3, TV3+, TV3 PULS)	25.4	24.7	24.2

MTG's combined media house target audience share in Sweden declined year on year and quarter on quarter for the period following significantly increased programming investments and an early Spring schedule launch by the commercial market leader. New sports and documentary channel TV10, which was launched in September 2010, continued to grow its target audience share according to plan.

The combined commercial target audience share for the Norwegian media house also declined year on year but was more stable quarter on quarter. This reflected the year on year impact of the launch of two new channels by competitors in the fourth quarter of 2010.

The combined target audience share for the Danish media house was up both year on year and quarter on quarter, following the continued success of several local productions. Both of the Group's complementary secondary channels (TV3+ and TV3 PULS) continued to develop according to plan and grow their respective target audience shares, while flagship channel TV3's target audience share was stable.

Pay-TV Nordic

10% year on year Sales Growth at constant exchange rates & 19% Operating Margin

(SEK million)	Jan-Mar 2011	Jan-Mar 2010	Change	Change at constant exchange rates
Net sales	1,139	1,092	4%	10%
Operating income	215	191	12%
Operating margin	19%	18%

Sales for the Nordic pay-TV business were up 10% year on year at constant exchange rates in the first quarter. The Nordic pay-TV operations market and sell Viasat's premium pay-TV packages on the Viasat DTH satellite platform and third party IPTV (broadband) and cable networks. Viasat also distributes its 26 Viasat-branded pay-TV channels via a wide range of third party pay-TV networks.

(000's)	Mar 2011	Dec 2010	Mar 2010
Premium subscribers	1,048	1,057	1,013
of which, DTH satellite subscribers	653	663	670
of which, third party network subscribers	394	394	343
Basic DTH satellite subscribers	42	43	44
DTH satellite value-added service subscribers
ViasatPlus	163	158	144
Multi-room	237	235	216
High definition	232	210	124

Viasat added 35,000 net new premium subscribers since the end of the first quarter of 2010, but the overall premium subscriber base declined quarter on quarter. The year on year growth continued to be driven by premium subscriber intake on third party networks, whilst the development of the premium DTH satellite subscriber base reflected the offsetting of net subscriber acquisition in Sweden by net declines in Norway and Denmark during the quarter. The number of subscribers to Viasat's recordable digital set-top box, multi-room and HD services continued to grow year on year and quarter on quarter.

The Group launched a multi-screen on-demand pay-TV service in Scandinavia at the beginning of March. The new service, Viaplay, enables Viasat subscribers to use a single ID and password to access Viasat pay-TV content on any internet-connected device. This 'OTT' (over the top) portable solution is the first of its kind in Scandinavia, and provides internet access to thousands of hours of streamed movies, live sports coverage, TV series, and catch-up services of favourite free-TV channels. Viaplay continued to develop according to plan following its full launch, but subscribers to this pioneering service are not as yet included in the subscriber figures in the table above.

Annualised average revenue per premium DTH satellite subscriber (ARPU) increased year on year to SEK 4,445 (4,356) in the first quarter, which was equivalent to 8% growth at constant exchange rates and reflected previously introduced price increases and the continued customer uptake of valueadded services. The reported quarter on quarter fall in ARPU from SEK 4,555 in the fourth quarter of 2010 was due to currency exchange rate movements, with local currency ARPU actually increasing quarter on quarter.

Total operating costs for the Pay-TV Nordic business amounted to SEK 924 (900) million in the first quarter and increased more at constant exchange rates, which primarily reflected ongoing investments in premium sports content, as well as the addition of 7 new channels since the beginning of 2010.

The Nordic pay-TV business reported a 12% year on year increase in operating profits in the first quarter, with an increased operating margin of 19% (18%).

6% Sales Growth at constant exchange rates & Double Digit Baltic & Czech Sales Growth
(SEK million)	Jan-Mar 2011	Jan-Mar 2010	Change	Change at constant exchange rates
Net sales	420	433	-3%	6%
Operating income	-31	-66	-

Free-TV Emerging Markets

The Group's Emerging Market free-TV operations comprise a total of 19 free-TV channels in the Baltics, the Czech Republic, Bulgaria, Hungary, Slovenia and Ghana.

Combined sales were up 6% year on year at constant exchange rates in the first quarter, following price increases and market share gains in almost all countries.

Combined operating costs for the operations amounted to SEK 451 (499) million in the first quarter, and were also slightly down year on year at constant exchange rates. This reflected the previously implemented cost reduction initiatives, which were offset to an extent by selective programming investments. The combined operations therefore more than halved their operating loss year on year in the first quarter.

Baltics, Czech Republic and Bulgaria

(SEK million)	Jan-Mar 2011	Jan-Mar 2010	Change	Change at constant exchange rates
Net sales	371	378	-2%	6%
Operating income	-3	-37	-

Combined sales for the Group's free-TV operations in the Baltics, Czech Republic and Bulgaria were up 6% year on year in the quarter at constant exchange rates.

Combined operating costs for the businesses amounted to SEK 373 (415) million in the first quarter and were also down year on year at constant exchange rates. The combined businesses therefore reported a significant year on year reduction in operating loss in the quarter to an almost breakeven position.

Commercial share of viewing (%) (target audience)	Jan-Mar 2011	Oct-Dec 2010	Jan-Mar 2010
Estonia (TV3, 3+, TV6) (15-49)	40.7	42.2	42.8
Latvia (TV3, 3+, TV6) (15-49)	36.7	39.2	34.8
Lithuania (TV3, TV6) (15-49)	42.2	43.6	39.5
Czech Republic (TV Prima, Prima COOL) (15-54)	25.5	25.9	20.1
Bulgaria (Nova TV, Diema, Diema 2, Diema Family) (18-49)	28.3	27.2	29.3

Sales for the Group's combined Baltic businesses grew by 13% year on year in the quarter at constant exchange rates. The channels also reported an increased pan-Baltic target audience share of 40.4% (38.7%) in the quarter, following significant year on year audience share gains in Latvia and Lithuania. The Group entered into a sales cooperation agreement with Russian channel RTR Planeta in Latvia and Estonia during the quarter. RTR Planeta, which had an audience share of over 2.5% in Latvia and 1.8% in Estonia in the first quarter, is now sold as part of the MTG bundled channel package to advertisers, which increases the combined reach of the channels in each country and particularly among the Russian speaking populations.

Sales for the Group's Czech operations were up 14% year on year at constant exchange rates. Both the TV Prima and Prima COOL channels reported significantly higher target audience shares year on year. The Group launched its third free-TV channel in the Czech Republic on 8 March. Prima LOVE is focused on 15-44 year old females and complements sister channels TV Prima and Prima COOL.

Sales for the Group's Bulgarian operations were down 13% year on year at constant exchange rates in the first quarter following price pressure from the main commercial competitor. Selective investments in high quality programming content and the introduction of several new local productions to target the channels' core urban audiences did result in quarter on quarter combined target audience share gains. The work continues to further strengthen the programming schedules moving forward.

Pay-TV Emerging Markets

11% year on year Sales Growth at constant exchange rates & Ongoing Investments in Satellite Platforms

(SEK million)	Jan-Mar 2011	Jan-Mar 2010	Change	Change at constant exchange rates
Net sales	215	218	-2%	11%
Operating income	7	40	-82%
Operating margin	3%	18%

Viasat's Emerging Market pay-TV operations market and sell premium pay-TV packages on the Viasat DTH satellite platforms in the Baltics and Ukraine, on the 50% owned joint venture Raduga TV DTH satellite platform in Russia, and on the Elion IPTV (broadband) network in Estonia. Viasat also distributes 19 of its channels via third party pay-TV networks to subscribers in 28 countries across Central and Eastern Europe, Africa and the United States.

Sales for the combined operations were up 11% year on year in the quarter at constant exchange rates following continued subscriber intake in Ukraine and Russia, growth in the mini-pay wholesale business, as well as the year on year effect of the consolidation of the results of the Group's 50% interest in Raduga TV from the beginning of February 2010 and the full consolidation of the Viasat Ukrainian DTH satellite platform from the beginning of June 2010.

(000's)	Mar 2011	Dec 2010	Mar 2010
Premium DTH satellite subscribers	254	245	224
Basic DTH satellite subscribers	184	185	109
Mini-pay TV subscriptions	58,197	50,245	44,335

Viasat's Emerging Markets pay-TV operations added 30,000 net new premium subscribers year on year following continued strong subscriber intake on the Ukrainian DTH satellite platform. The Group also added 75,000 basic subscribers year on year following the growth of the Raduga TV DTH satellite subscriber base in Russia. The wholesale mini-pay business added nearly 14 million new subscriptions year on year, and almost 8 million new subscriptions in the first quarter alone.

The Group launched four of its pay-TV channels in Africa at the end of February 2011. Viasat History, Viasat Nature, Viasat Explorer and Viasat Crime have initially been made available to satellite pay-TV subscribers in Nigeria and cable pay-TV subscribers in Kenya.

Operating costs for the Emerging Market pay-TV business amounted to SEK 207 (178) million in the quarter and were up significantly year on year at constant exchange rates. The increase reflected the launch of 6 new channels since the beginning of 2010 including Nova Sport in Bulgaria and the African channels, as well as the abovementioned consolidation of 50% of Raduga TV and 100% of Viasat Ukraine and the ongoing investments in the development of the two platforms. The combined business remained profitable and reported SEK 7 (40) million of operating income in the quarter.

CTC Media

The Group reports its 38.2% participation in the earnings of CTC Media with a one quarter time lag, due to the fact that CTC Media reports its financial results after MTG. MTG's participation in CTC Media's US dollar reported results is translated into MTG's Swedish krona reporting currency at the average currency exchange rate for the MTG reporting period.

CTC Media's sales grew by 23% year on year to USD 222 (181) million in the fourth quarter of 2010 and the Company's operating profit almost tripled year on year to USD 101 (37) million. CTC Media's pre-tax profit more than doubled year on year to USD 105 (40) million in the fourth quarter of 2010. CTC Media's results for the fourth quarter of 2009 included a USD 19 million charge arising from the impairment of the broadcasting licenses of certain regional owned-and-operated stations in Russia, and a USD 29 million stock-based compensation expense recognised in conjunction with the settlement of litigation brought by CTC Media.

MTG's equity participation in the earnings of CTC Media therefore more than doubled year on year to SEK 253 (105) million in the first quarter. As mentioned above, MTG also received an increased quarterly dividend of SEK 61 (28) million from CTC Media in the first quarter.

CTC Media will publish its results for the first quarter ended 31 March 2011 on 4 May 2011.

(SEK million)	Jan-Mar 2011	Jan-Mar 2010	Change	Change at constant exchange rates
Net sales	400	410	-2%	4%
Operating income	20	25	-19%
Operating margin	5%	6%

Other Businesses

The 'Other Businesses' segment primarily comprises the Group's Radio, Bet24 and Modern Studios businesses. The Group's radio operations include the leading national commercial networks in Sweden and Norway, as well as national and local stations in the Baltics. Modern Studios comprises the Group's content production businesses in Europe and Africa.

Combined sales for the businesses were up 4% year on year at constant exchange rates in the first quarter, which was driven by the growth in the Norwegian and Swedish radio advertising markets.

Combined operating costs for the Other Businesses amounted to SEK 380 (385) million in the first quarter and were up year on year at constant exchange rates. The increase primarily reflected investments in the Swedish radio businesses and the local city network P5 in Norway. The combined businesses reported a year on year decline in operating profits to SEK 20 (25) million and an operating margin of 5% (6%).

Financial Review

Cash Flow

The Group's cash flow from operations before changes in working capital amounted to SEK 462 (313) million in the first quarter and included the SEK 61 (28) million quarterly dividend received from CTC Media. The Group reported a SEK -339 (-153) million change in working capital in the quarter, which reflected timing differences in the payments of accounts receivables and payables. Group net cash flow from operations therefore totalled SEK 123 (160) million in the quarter.

The Group made no investments in businesses during the first quarter of 2011, compared to the SEK 136 million investment to acquire 50% of Raduga TV in the first quarter of 2010. Group capital expenditure on tangible and intangible assets totalled SEK 32 (47) million in the quarter, which was equivalent to approximately 1% of Group net sales for the period.

Cash flow from/to financing activities amounted to SEK -189 (240) million in the first quarter and primarily comprised the paying down of SEK 300 million of the Group's revolving credit facility, compared to the drawing down of SEK 168 million in the corresponding period of 2010. SEK 2,400 (3,668) million of the Group's available credit was drawn down at the end of the first quarter, compared to of SEK 2,700 million as at 31 December 2010.

The net change in cash and cash equivalents for the period therefore amounted to SEK -98 (132) million in the quarter, and the Group had SEK 368 (838) million of cash and cash equivalents at the end of the period, compared to SEK 500 million at the end of 2010.

Net debt

The Group's net debt position, which is defined as interest bearing liabilities less cash and cash equivalents and interest bearing assets, amounted to SEK 1,863 (2,847) million at the end of the period and compared to a net debt position of SEK 2,026 million as at 31 December 2010.

Liquid funds

The Group's available liquid funds, including unutilised credit facilities, totalled SEK 4,568 (3,770) million at the end of the period, compared to SEK 4,400 million at the end of 2010.

Holdings in listed companies

The book value of the Group's 38.2% shareholding in associated company CTC Media was SEK 1,766 million at the end of the period, and compared with the SEK 8,911 million (USD 1,414 million) public equity market value of the shareholding as at the close of trading on the last business day of the first quarter.

Equity

The Group reported SEK -189 (-237) million of currency translation differences in equity in the quarter. The Group does not hedge its equity exposure to currency translation effects. The Group's total equity amounted to SEK 6,538 (5,767) million at the end of the period, compared to SEK 6,239 million as at 31 December 2010.

RELATED PARTY TRANSACTIONS

Other related party transactions for the period are of the same character and of similar amounts as the transactions described in the 2010 Annual Report.

PARENT COMPANY

Modern Times Group MTG AB is the Group's parent company and is responsible for Group-wide management, administration and finance functions.

The MTG parent company reported net sales of SEK 9 (11) million in the first quarter. Net interest and other financial items totalled SEK 161 (108) million for the period. Income before tax amounted to SEK 126 (80) million in the quarter. The parent company had cash and cash equivalents of SEK 57 (605) million at the end of the period, compared to SEK 136 million as at 31 December 2010. SEK 4,200 (2,932) million of the SEK 6,600 million total available credit facilities, including the SEK 100 million overdraft facility, was unutilised as at the end of the reporting period.

RISKS AND UNCERTAINTIES

Significant risks and uncertainties exist for the Group and the parent company, which include the commercial risks related to the expansion in new territories, legislative and regulatory risks in the various countries in which the Group operates, and technology risks. No additional risks or uncertainties are believed to have developed over and above those described in the 2010 Annual Report. The risks and uncertainties are described in more detail in the Annual Report.

Other Information

This report has been prepared according to 'IAS 34 Interim Financial Reporting' and 'The Annual Accounts Act'. The Group's consolidated accounts have been prepared according to the same accounting policies and calculation methods as were applied in the preparation of the 2010 Annual Report.

This report has not been subject to review by the Group's auditors.

MTG's financial results for the second quarter and six months ended 30 June 2011 will be published on 20 July 2011.

18 April 2011

Hans-Holger Albrecht, President & Chief Executive Officer

Modern Times Group MTG AB Skeppsbron 18 P.O. Box 2094 SE-103 13 Stockholm, Sweden Registration number: 556309-9158

The company will host a conference call today at 15.00 Stockholm local time, 14.00 London local time and 09.00 New York local time. To participate in the conference call, please dial:

Sweden:	+46 (0)8 5051 3785
International:	+44 (0)20 7138 0826
US:	+1 212 444 0481

The access pin code for the conference is 5877242

To listen to the conference call online, please go to www.mtg.se.

***

For further information, please visit www.mtg.se, or contact:

Hans-Holger Albrecht, President & Chief Executive Officer Mathias Hermansson, Chief Financial Officer

Modern Times Group MTG AB

Tel: +46 (0) 8 562 000 50

Investor & Analyst Enquiries: Jacob Waern / Matthew Hooper Tel: +46 (0) 736 99 29 91 / +44 (0) 7768 440 414 Email: investor.relations@mtg.se

Press Enquiries Bert Willborg Tel: +44 (0) 7912 280 850 Email: bert.willborg@mtg.se

Modern Times Group is an international entertainment broadcasting group with the largest geographical broadcast footprint in Europe. MTG's Viasat Broadcasting operates 28 free-TV channels in 11 countries and 38 pay-tv channels in 32 countries. The pay-tv channels are distributed on Viasat's own satellite platforms in 9 countries, as well as on third party broadcast networks (including cable, satellite and IPTV) and over the open internet. These free-TV and pay-TV channels and pay-TV platforms attract a total of 125 million viewers in 33 countries. MTG is also the largest shareholder in Russia's leading independent television broadcaster (CTC Media – Nasdaq: CTCM).

Modern Times Group is a growth company and generated SEK 13.1 billion of sales and SEK 2.4 billion of operating income in 2010. MTG's Class A and B shares are listed on Nasdaq OMX Stockholm's Large Cap index under the symbols '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 13.00 CET on 18 April 2011.

CONDENSED CONSOLIDATED	2011	2010	2010
INCOME STATEMENT (MSEK)	Jan-Mar	Jan-Mar	Jan-Dec
Net sales	3,125	3,054	13,101
Cost of goods and services	-1,874	-1,857	-7,902
Gross income	1,250	1,197	5,199
Selling and administrative expenses	-789	-794	-3,161
Other operating revenues and expenses, net Share of earnings in associated companies	-30 253	-26 107	-97 413
Operating income (EBIT)	684	483	2,355
Net interest and other financial items	-13	-48	-34
Income before tax	671	436	2,321
Tax	-181	-161	-571
Net income for the period	490	275	1,750
DISCONTINUED OPERATIONS
Net gain from distribution of CDON Group	-	-	1,717
Net income after tax from discontinued operations	-	25	73
Net income for the period from discontinued operations	-	25	1,790
Net income for the period	490	300	3,541
Attributable to:
Equity holders of the parent	487	303	3,522
Non-controlling interests	3	-3	19
Net income for the period	490	300	3,541
Basic earnings per share (SEK) from continuing operations	7.35	4.22	26.22
Diluted earnings per share (SEK) from continuing operations	7.29	4.15	26.07
Basic earnings per share (SEK)	7.35	4.60	53.34
Diluted earnings per share (SEK)	7.29	4.53	53.03
CONDENSED STATEMENT OF
COMPREHENSIVE INCOME FOR THE GROUP (MSEK)
Net income for the period	490	300	3,541
Other comprehensive income
Currency translation differences	-189	-237	-818
Cash flow hedge	-3	13	9
Revaluation of shares at market value	0	3	2
Share of other comprehensive income of associates	-	-	6 9
Other comprehensive income for the period	-192	-222	-737
Total comprehensive income for the period	298	79	2,803
Total comprehensive income attributable to:
Equity holders of the parent	295	82	2,810
Non-controlling interests	3	-3	-7
Total comprehensive income for the period	298	79	2,803
Shares outstanding at the end of the period	66,342,124	65,908,541	66,342,124
Basic average number of shares outstanding	66,342,124	65,896,430	66,024,365
Diluted average number of shares outstanding	66,703,086	66,319,870	66,377,452

CONDENSED STATEMENT OF	2011	2010	2010
FINANCIAL POSITION (MSEK)	31 Mar	31 Mar	31 Dec
Non-current assets
Goodwill	4,908	5,228	4,928
Other intangible assets	1,159	1,351	1,182
Machinery and equipment	295	350	297
Shares and participations	1,878	1,858	1,894
Other financial receivables	326	181	346
	8,566	8,968	8,648
Current assets
Inventory	1,880	2,170	1,684
Current receivables	3,091	2,884	3,170
Cash, cash equivalents and short-term investments	368	838	500
	5,339	5,892	5,354
Total assets	13,905	14,860	14,002
Shareholders' equity
Shareholders' equity	6,288	5,485	5,986
Non-controlling interests	250	282	253
	6,538	5,767	6,239
Long-term liabilities
Interest-bearing liabilities	2,408	3,690	2,683
Provisions	581	652	569
Non-interest-bearing liabilities	64	12	59
	3,054	4,353	3,311
Current liabilities
Interest-bearing liabilities	70	73	83
Non-interest-bearing liabilities	4,243	4,667	4,370
	4,313	4,739	4,452
Total shareholders' equity and liabilities	13,905	14,860	14,002

CONDENSED CONSOLIDATED	2011	2010	2010
STATEMENT OF CASH FLOWS (MSEK)	Jan-Mar	Jan-Mar	Jan-Dec
Cash flow from operations	462	313	1,810
Changes in working capital	-339	-153	-277
Net cash flow from operations continuing operations	123	160	1,533
Investments in shares in subsidiaries and associates	-	-136	-275
Investments in other non-current assets	-32	-47	-157
Other cash flow from investing activities	-	0	-250
Cash flow to/from investing activities continuing operations	-32	-184	-683
Net change in loans	-283	204	-766
Dividends to shareholders and share buy-backs	-	-	-363
Other cash flow from/to financing activities	94	36	232
Cash flow to/from financing activities continuing operations	-189	240	-897
Cash flow from discontinued operations, CDON Group	-	-85	-88
Net change in cash and cash equivalents for the period	-98	132	-135
Cash and cash equivalents at the beginning of the period	500	737	737
Translation differencies in cash and cash equivalents	-34	-31	-102
Cash and cash equivalents at end of the period	368	838	500

CONDENSED STATEMENT OF CHANGES	2011	2010	2010
IN EQUITY (MSEK)	31 Mar	31 Mar	31 Dec
Opening balance	6,239	5,680	5,680
Net income for the period	490	300	3,541
Other comprehensive income	-192	-222	-737
Effect of employee share option programmes	1	5	1 7
Employee options exercised	-	3	182
Change in non-controlling interests	-	-	0
Dividends to shareholders	-	-	-363
Dividends to non-controlling interests	-	-	- 39
Sale of MTG shares	-	-	-2,042
Closing balance	6,538	5,767	6,239

CONDENSED INCOME STATEMENT	2011	2010	2010
PARENT COMPANY (MSEK)	Jan-Mar	Jan-Mar	Jan-Dec
Net sales	9	11	41
Gross income	9	11	41
Selling and administrative expenses	-45	-39	-217
Operating income (EBIT)	-36	-29	-175
Net interest and other financial items	161	108	543
Income before tax	126	80	368
Tax	-33	-19	-79
Net income for the period	93	60	288

CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PARENT (MSEK)
Net income for the period	93	60	288
Other comprehensive income
Revaluation of shares at market value	0	3	2
Other comprehensive income for the period	0	3	2
Total comprehensive income for the period	93	63	290

CONDENSED BALANCE SHEET	2011	2010	2010
PARENT COMPANY (MSEK)	31 Mar	31 Mar	31 Dec
Non-current assets
Shares and participations	3,694	3,705	3,676
Other financial receivables	12,659	12,135	12,617
	16,353	15,840	16,293
Current assets
Current receivables	230	132	537
Cash, cash equivalents and short-term investments	57	605	136
	287	737	673
Total assets	16,639	16,577	16,966
Shareholders' equity
Share capital	337	334	337
Shareholders' equity	8,583	8,883	8,490
	8,920	9,217	8,827
Long-term liabilities
Interest-bearing liabilities	6,508	6,745	6,516
Provisions	10	6	6
Non-interest-bearing liabilities	107	0	4 9
	6,626	6,751	6,570
Current liabilities
Other interest-bearing liabilities	994	-	8 72
Non-interest-bearing liabilities	100	609	696
	1,094	609	1,568
Total shareholders' equity and liabilities	16,639	16,243	16,966

NET SALES	Q1	Q2	Q3		Q4 FULL YEAR
BUSINESS SEGMENTS (MSEK)	2010	2010	2010	2010	2010	Q1 2011
Free-TV Scandinavia	980.0	1,116.4	922.1	1,228.9	4,247.4	1,023.1
Pay-TV Nordic	1,091.7	1,115.4	1,140.2	1,136.6	4,483.9	1,139.1
Free-TV Emerging Markets - of which Baltics, Czech & Bulgaria	433.2 378.0	582.4 510.0	357.1 309.8	631.5 556.0	2,004.2 1,754.0	419.8 370.5
Pay-TV Emerging Markets	218.1	224.5	228.5	224.9	896.0	214.7
Viasat Broadcasting central operations & eliminations	-49.1	-38.6	-33.9	-40.9	-162.6	-43.0
Total Viasat Broadcasting	2,673.8	3,000.1	2,614.0	3,180.9	11,468.9	2,753.8
Other Businesses	410.1	482.3	456.5	455.2	1,804.0	400.2
Total operating businesses	3,083.9	3,482.4	3,070.5	3,636.1	13,272.9	3,154.0
Group central operations	46.5	46.7	46.2	51.7	191.2	47.3
Eliminations	-76.3	-116.4	-99.9	-70.3	-363.0	-76.4
TOTAL ONGOING OPERATIONS	3,054.1	3,412.6	3,016.8	3,617.5	13,101.1	3,124.8

OPERATING INCOME (EBIT)	Q1	Q2	Q3		Q4 FULL YEAR	Q1
BUSINESS SEGMENTS (MSEK)	2010	2010	2010	2010	2010	2011
Free-TV Scandinavia	215.6	297.4	219.3	350.0	1,082.2	260.3
Pay-TV Nordic	191.3	221.5	201.2	207.8	821.8	214.8
Free-TV Emerging Markets	-66.0	41.8	-75.3	56.1	-43.4	-31.2
- of which Baltics, Czech & Bulgaria	-37.0	63.4	-48.9	74.9	52.4	-2.6
Pay-TV Emerging Markets	40.1	36.4	5.9	29.4	111.7	7.4
Associated company CTC Media	104.9	114.6	89.1	96.6	405.1	253.0
Viasat Broadcasting central operations & eliminations	15.6	4.6	-3.7	2.1	18.5	12.5
Total Viasat Broadcasting	501.4	716.2	436.432	742.0	2,396.1	716.8
Other Businesses	24.8	47.6	49.7	52.5	174.6	20.0
Total operating businesses	526.2	763.8	486.1	794.5	2,570.7	736.8
Group central operations & eliminations	-42.8	-65.7	-59.0	-48.4	-215.9	-52.4
TOTAL ONGOING OPERATIONS	483.4	698.1	427.1	746.1	2,354.8	684.4

CONDENSED SALES GROUP SEGMENTS (MSEK) Sales external customers	2011 Jan-Mar	2010 Jan-Mar
Viasat Broadcasting	2,753	2,671
Other Businesses	366	380
Parent company & holding companies	6	3
Total	3,125	3,054
Sales other segments
Viasat Broadcasting	1	3
Other Businesses	34	30
Parent company & holding companies	41	44
Total	76	76

KEY PERFORMANCE INDICATORS	Q1 2010	Q2 2010	Q3 2010	2010	Q4 FULL YEAR 2010	Q1 2011
GROUP
Year on year sales growth (%) *	3.6	5.4	8.6	4.5	5.4	2.3
Year on year change in operating costs (%) * Operating margin (%) *	0.5 12.3	2.0 16.9	4.5 11.2	2.7 18.0	2.4 14.8	0.6 13.8
Year on year sales growth at constant exchange rates (%) **	8.7	11.3	14.5	11.7	11.5	9.7
Return on capital employed (%)	19	22	24	25		28
Return on equity (%)	20	23	27	30		32
Equity to assets ratio (%) Liquid funds (incl unutilised credit facilities), SEK million	39 3,770	39 3,464	38 3,631	45 4,400		47 4,568
Net debt (SEK million)	2,847	3,185	3,031	2,026		1,863
Subscriber data ('000s)
Group total digital subscribers Group total premium subscribers	1,400 1,246	1,427 1,257	1,469 1,275	1,540 1,312		1,539 1,313
FREE-TV SCANDINAVIA Year on year sales growth (%)	10.6	13.5	16.7	6.0	11.2
Year on year change in operating costs (%)	11.9	6.7	4.8	0.1	5.5	4.4 -0.2
Operating margin (%)	22.0	26.6	23.8	28.5	25.5	25.4
Year on year sales growth at constant exchange rates (%) **	14.7	18.2	22.0	12.0	16.3	10.9
Commercial share of viewing (15-49) (%)
Sweden (TV3, TV6, TV8, TV10/ZTV) Norway (TV3, Viasat4)	36.1 25.8	37.2 28.3	38.8 29.1	35.2 23.1	36.8 26.4	33.8 22.9
Denmark (TV3, TV3+, TV3 PULS)	24.2	24.1	24.8	24.7	24.5	25.4
Penetration (%)
TV3 Sweden TV6 Sweden	86 87	87 87	87 87	87 88		88 87
TV8 Sweden	66	66	66	66		67
TV10 Sweden TV3 Norway	91	91	36 91	40 92		44 92
Viasat4 Norway	69	71	74	75		75
TV3 Denmark 1 TV3+ Denmark 1	69 64	70 63	70 63	69 62		69 63
TV3 PULS Denmark 1	51	48	48	45		47
PAY-TV NORDIC
Year on year sales growth (%)	2.1	3.8	4.5	4.0	3.6	4.3
Year on year change in operating costs (%) Operating margin (%)	0.7 17.5	-0.1 19.9	3.1 17.6	3.0 18.3	1.7 18.3	2.7 18.9
Year on year sales growth at constant exchange rates (%) **	5.9	8.4	8.9	10.0	8.3	10.3
Subscriber data ('000s)
Premium subscribers	1,013	1,025	1,041	1,057		1,048
- of which, DTH satellite - of which, 3rd party networks	670 343	666 359	666 375	663 394		653 394
Basic DTH subscribers	44	45	46	43		42
Premium DTH ARPU (SEK)	4,356	4,446	4,472	4,555		4,445
FREE-TV EMERGING MARKETS
Year on year sales growth (%)	-6.7	-4.9	-2.8	-3.1	-4.4	-3.1
Year on year change in operating costs (%)	-7.3	-6.8	-7.8	-2.8	-6.0	-9.7
Operating margin (%)	-	7.2	-	8.9	-	-
Year on year sales growth at constant exchange rates (%) **	-0.9	3.6	7.7	6.3	4.2	5.9
Commercial share of viewing (%) Estonia (15-49)	42.8	42.2	40.0	42.2	41.9	40.7
Latvia (15-49)	34.8	40.3	38.4	39.2	38.1	36.7
Lithuania (15-49) Czech Republic (15-54)	39.5 20.1	37.8 22.3	41.8 25.9	43.6 25.9	40.7 23.4	42.2 25.5
Bulgaria (18-49) 2	29.3	27.9	28.2	27.2	28.2	28.3
Hungary (18-49) Slovenia (18-49)	7.9 9.7	7.1 10.3	7.8 11.1	7.4 9.8	7.5 10.1	7.9 10.2
PAY-TV EMERGING MARKETS
Year on year sales growth (%)	-0.9	2.7	8.4	-0.2	2.4	-1.5
Year on year change in operating costs (%)	-0.9	2.0	24.4	19.2	10.9	16.5
Operating margin (%) Year on year sales growth at constant exchange rates (%) **	18.4 13.2	16.2 12.1	2.6 15.5	13.1 8.9	12.5 12.4	3.4 11.5
Subscriber data ('000s)
Premium DTH subscribers	224	224	225	245		254
Basic DTH subscribers 3 Mini-pay subscriptions	109 44,335	125 45,467	148 46,629	185 50,245		184 58,197
ASSOCIATED COMPANY CTC MEDIA Share of viewing
CTC Russia (6-54)	12.6	11.5	11.6	11.6	11.9	11.2
Domashny Russia (females 25 - 60) DTV Russia (25-54)	3.0 2.1	3.5 2.1	3.3 2.0	2.8 2.3	3.1 2.1	2.8 2.0
Channel 31 Kazakhstan (6-54)	10.4	12.2	11.4	11.8	11.4	14.8

¹ Updated figures were not published as per the date of this report

² Pro forma for the combined Diema and Nova channels 3

Includes Raduga from Q1 2010

* excluding non-recurring items and CDON Group

** the growth is calculated based on prior year's exchange rates