Modern Times Group A — Earnings Release 2014

Feb 4, 2015

Corrected version. Non-controlling interest for Q4 2014 has been changed to SEK 24m (from SEK 0m). No change to the full year number.

Record Sales & Profits Up

Q4 2014 Highlights

• Net sales up 6% at constant FX & up 2% on an organic basis
• Operating income before associated company income and non-recurring items up 2% to SEK 468m (461)
• Total EBIT of SEK 611m (417) and net income of SEK 471m (261)
• Basic earnings per share of SEK 6.70 (3.68)
• Cash flow from operations of SEK 338m (396), with net debt position of SEK 362m (772) equivalent to 0.2x trailing 12 month EBITDA (excl. non-recurring items)
• Board of Directors to propose increased annual cash dividend of SEK 11.00 (10.50) per share, representing pay-out ratio of 57% (56) excluding non-recurring items
• Adverse FX movements to impact 2015 reported earnings (see page 2 CEO comments)

Financial Overview

(SEKm)	2014 Oct-Dec	2013 Oct-Dec	2014 Jan-Dec	2013 Jan-Dec
Net sales	4,371	4,068	15,746	14,073
Growth at constant FX	6%	14%	11%	8%
Organic growth at constant FX	2%	6%	4%	5%
EBIT before associated company income and non recurring items	468	461	1,272	1,309
Margin before associated company income and non recurring items	10.7%	11.3%	8.1%	9.3%
Associated company income *	143	104	558	576
EBIT before non-recurring items	611	564	1,830	1,885
Non-recurring items (NRI) **	0	-147	-155	-147
Total EBIT	611	417	1,675	1,738
Net Income	471	261	1,172	1,168
Basic Earnings per Share (SEK)	6.70	3.68	17.10	16.39
Net debt	362	772	362	772
Cash flow from operations	338	396	1,337	1,348

* Including MTG's SEK 74m (USD 11.5m) Q1 2014 participation in USD 29.9m of non-recurring charges incurred by associated company CTC Media in Q4 2013. Including a net positive impact of SEK 18m in Q4 2014 relating to the closure of Raduga TV.

** Comprising in 2014 the SEK 160m non-cash net impairment charge related to MTG's interest in the Ukrainian satellite pay-TV platform; SEK 70m of organisational restructuring charges and other costs; and the SEK 76m net gain from the sale of Zitius in Sweden. Comprising in 2013 the non-cash net impairment related to MTG's interest in the Raduga Russian satellite pay-TV platform.

For further information please contact Investor relations at + 46 (0) 703 699 2714 / investors@mtg.com or Public relations at + 46 (0) 703 699 2709 / press@mtg.com

President & CEO's comments

Delivering on strategy

Our fourth quarter results again delivered a combination of organic and acquisition-led growth to generate higher sales and profits. Our strong cash flow generation and overall financial position are reflected in the proposed 5% higher annual dividend payment of SEK 11 per share, which is equivalent to a 57% pay-out ratio.

We are delivering on our strategic plans and moving towards our objective of being the leading digital entertainment company in each of our major markets. Our Nordic broadcasting business again delivered higher sales and profits, as the growth in our online businesses more than compensated for lower linear viewing levels and declining advertising markets. The Emerging Markets businesses grew their sales on a combined basis but higher profits in the free-TV business were offset by negative pay-TV earnings impacts. We have continued to enrich the content offering across all of our platforms with exclusive deals for premium sports and studio rights. Our commitment to show the best content on multiple devices reflects media consumption trends and has driven higher online and mobile subscriber volumes and viewing shares, and led to the even broader availability of our entertainment products on third party networks.

Russia

The law prohibiting the sale of advertising on pay-TV channels in Russia has taken effect from the beginning of 2015. An amendment to the law that would allow advertising on pay-TV channels with 75% Russian content is now pending Presidential signature. We are continuing to explore the options available to our Russian operations and holdings in order to comply with the amendments to the Russian law regarding foreign ownership of Russian mass media companies from the beginning of 2016. We are working with a range of potential solutions, in order to best protect the interests of the stakeholders in these entertainment businesses that we have built into some of the most popular in Russia.

FX & Outlook

We are being impacted by significant adverse FX movements and, especially, the impact of the appreciation of the US dollar on our group-wide programming costs, and the depreciation of the Russian ruble on our Russian pay-TV channel business. Based on these changes, our US dollar content costs would be inflated by approximately SEK 200m in 2015, net of forward currency hedges, and the profits for our pay-TV emerging markets business would be negatively impacted by approximately SEK 100m in 2015. We are accelerating and extending actions to balance costs and optimize investments across the Group. The operations continue to perform well independent of the currency effects.

We are both developing our existing businesses and acquiring complementary new companies. As a result, we already have established digital leadership positions in a number of fields and will add to these across our unique footprint. We are offsetting falling linear viewing with higher prices as linear TV continues to offer attractive return on investment for advertisers, and we are attracting larger and larger online audiences, while remaining well positioned to capitalize on media spend growth in the emerging markets. All of which is contributing to our positive operating performance.

Jørgen Madsen Lindemann

President & Chief Executive Officer

"The results for the quarter again demonstrate the progress that we are making towards our strategic goals. We do have substantial FX headwinds right now, but the operations continue to perform well."

Significant Events during and after the quarter

1 October - Nickelodeon content on Viaplay

MTG announced that it had secured the exclusive stand-alone video on-demand rights to programming from top children's entertainment brand Nickelodeon in the Nordic region until 2020.

15 October - Russian Mass Media law amended

MTG announced that the proposed amendments to the Russian Mass Media law had now become law following signature by the Russian President. The amendments reduce the permitted level of aggregate foreign ownership of Russian mass media from 50% direct ownership to 20% direct or indirect ownership or control, and apply to both existing and future ownership structures. The legislation will come into force from 1 January 2016. Please see www.ctcmedia.ru regarding the change in legislation and the actions being taken by CTC Media. MTG is also working independently with its own financial and legal advisers to decide on what actions will be taken regarding its Russian holdings and operations.

1 December - Raduga TV to close down

MTG announced that the Russian digital satellite TV platform Raduga TV would stop its broadcasting services on 5 December 2014 as it had not been granted the required broadcasting license from the local media regulator. MTG also announced that it would launch five new High Definition pay-TV channels in Russia during 2015.

2 December - Viaplay inks partnership agreement with Tele2

MTG announced that Viaplay was entering a partnership with Swedish telecom operator Tele2 to offer Viaplay to Tele2's 3.7 million mobile and mobile broadband subscribers in Sweden.

2 December - MTG prolongs golf rights

MTG announced that it has reached an agreement to extend its exclusive rights to the PGA European tour, the Ryder Cup, The World Golf Championships, the British Open Championship, the US PGA Championship, the LPGA and the Asian Tour in the Nordics and the Baltics until the end of 2018.

A full list of MTG corporate events can be found at www.mtg.com.

Operating Review

Group sales were up 6% in the quarter and up 11% for the full year at constant FX, and up 2% and 4% on an organic basis for the two respective periods. The performance primarily reflected the growth in the Nordic pay-TV and Nice Entertainment content businesses.

Operating costs were up 6% in the quarter and up 12% for the full year at constant FX, and up 2% and 5% on an organic basis for the two respective periods. The increase primarily reflected the growth in the Nordic pay-TV business, investments in MTGx, and the consolidation of acquired businesses. Operating income, when excluding associated company income and non-recurring items, amounted to SEK 468m (461) in the quarter and SEK 1,272m (1,309) for the full year, with operating margins of 10.7% (11.3) and 8.1% (9.3) for the two respective periods.

* Quarterly fluctuations reflect seasonality of advertising markets

Net interest income totalled SEK 14m (-13) in the quarter and SEK -1m (-46) for the full year. Other financial items amounted to SEK 20m (41) and SEK -23m (34), and included a SEK -1m (26) non-cash impact in the quarter and SEK -34m (-13) for the full year due to the change in value of the option element of the 250m CDON Group convertible bond, which was repurchased in December. The Group reported income before tax of SEK 645m (445) in the quarter and SEK 1,652m (1,726) for the full year, with net income of 471m (261) in the quarter and SEK 1,172m (1,168) for the full year; and basic earnings per share of SEK 6.70 (3.68) and SEK 17.10 (16.39) for the two respective periods.

Free-TV Scandinavia

Sales down 5% at constant FX but margin up

(SEKm)	2014 Oct-Dec	2013 Oct-Dec	2014 Jan-Dec	2013 Jan-Dec
Net sales	1,111	1,149	4,109	4,110
Change y-o-y	-3%	0%	0%	-1%
Change y-o-y at constant FX	-5%	1%	-2%	0%
Costs	890	935	3,476	3,442
Change y-o-y	-5%	4%	1%	2%
EBIT	220	214	633	668
EBIT margin	19.8%	18.6%	15.4%	16.3%

The sales decline at constant FX reflected the combination of lower sales in Sweden, stable sales in Denmark and higher sales in Norway. The Swedish and Danish TV advertising markets are estimated to have declined while the Norwegian market is estimated to have grown.

Operating costs were down at constant FX, as the Group continued to balance investments with market conditions and audience share development.

The Swedish and Norwegian media house audience shares were down y-o-y, while the Danish share was up.

Pay-TV Nordic

Sales up 6% at constant FX with margin expansion

(SEKm)	2014 Oct-Dec	2013 Oct-Dec	2014 Jan-Dec	2013 Jan-Dec
Net sales	1,472	1,368	5,756	5,335
Change y-o-y	8%	6%	8%	5%
Change y-o-y at constant FX	6%	7%	7%	6%
Costs	1,288	1,203	5,047	4,716
Change y-o-y	7%	11%	7%	11%
EBIT	184	165	709	619
EBIT margin	12.5%	12.0%	12.3%	11.6%

The sales growth in constant FX continued to be driven by the expansion of Viaplay. Operating costs were also up, and reflected the ongoing investments in content, technology and marketing.

The total premium subscriber base was up quarter-on-quarter (q-o-q) and y-o-y, as the growth in the third party network subscriber base more than offset the ongoing decline in the satellite base. Premium satellite ARPU continued to rise to SEK 5,254 (5,075), and was up 2% y-o-y at constant FX following the previously introduced price increases.

Annualised Average Revenue per Premium Satellite Subscriber (ARPU) and Growth at constant FX

Free-TV Emerging Markets

Sales down 5% at constant FX but margin up

	2014	2013	2014	2013
(SEKm)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Net sales	762	784	2,409	2,445
Change y-o-y	-3%	16%	-1%	20%
Change y-o-y at constant FX	-5%	18%	-3%	24%
Costs	671	701	2,278	2,230
Change y-o-y	-4%	23%	2%	19%
EBIT	91	83	131	215
EBIT margin	12.0%	10.6%	5.4%	8.8%

The sales decline at constant FX primarily reflected lower sales in the Czech Republic, which were only partly offset by growth in the Baltics and Bulgaria. Operating costs were reduced in the Czech Republic in particular and only partly offset by the launch in Tanzania (January 2014).

* The source for Bulgarian audience data has been changed as of Q4 2014 from GARB to Nielsen's Mediaresearch, which is a well-established international data source. All four quarters in 2014 as well as the full year figure are now based on the new source. The universe has also expanded from Q1 2014 to include seven new channels.

Sales for the Baltic free-TV operations were up 2% at constant FX. Sales were up in Estonia and Latvia but down in Lithuania. The Latvian and Lithuanian TV advertising markets are estimated to have declined in the quarter while the Estonian TV advertising market is estimated to have grown. The media house audience shares were down in Estonia and Lithuania but up in Latvia, and MTG remains the largest media house in each of the Baltic countries.

Sales for the Czech operation were down 15% at constant FX and reflected tough y-o-y comparisons and the highly competitive market environment. The Czech TV advertising market is estimated to have declined in the quarter, while MTG's media house audience share was up.

The Bulgarian operation generated 12% constant FX sales growth, following both organic growth and the consolidation of Net Info (November 2013). The Bulgarian TV advertising market is estimated to have been flat in the quarter, and MTG's media house audience share reached 41.1%.

Pay-TV Emerging Markets

15% sales growth at constant FX with margin erosion

(SEKm)	2014 Oct-Dec	2013 Oct-Dec	2014 Jan-Dec	2013 Jan-Dec
Net sales	355	307	1,225	1,089
Change y-o-y	16%	19%	13%	9%
Change y-o-y at constant FX	15%	21%	14%	12%
Costs	330	256	1,121	960
Change y-o-y	29%	1%	17%	12%
EBIT	25	51	104	129
EBIT margin	7.1%	16.7%	8.5%	11.9%

Please note that MTG's 50% ownership interest in Raduga has been accounted for as an equity participation with effect from 1 January 2014 due to changes in IFRS rules. Results for prior periods have been adjusted in the Group's reporting for the purposes of comparison. Raduga ceased broadcasting on 5 December 2014, which resulted in a net positive impact of SEK 18m in Q4 2014.

The sales and cost growth at constant FX reflected the consolidation of Trace (July 2014).

The wholesale mini-pay channel business has added 39 million subscriptions y-o-y, with an underlying decrease of 3 million when excluding the contribution from Trace. The combined satellite pay-TV subscriber base continued to decline, which was primarily due to the geopolitical situation in Ukraine.

The non-recurring and non-cash impairment of the intangible assets related to the satellite platforms in Russia and Ukraine (in Q4 2013 and Q2 2014, respectively) are not included in the segment operating results.

Please see page 12 (Other Information) regarding the risks and uncertainties arising from the amendments to the Russian Mass Media law.

* Including Trace from Q3 2014.

** Subscriber numbers have been restated to exclude Raduga subscribers following the closure of the business.

CTC Media

The Group reports its equity participation in the earnings of CTC Media, Inc. 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 Swedish krona at the average currency exchange rate for the MTG reporting period. The Group owned 37.9% (37.9%) of CTC Media's issued shares at the end of the quarter. CTC Media reported its third quarter financial results on 29 October 2014. Please see www.ctcmedia.ru for further information about CTC Media.

Please see page 12 (Other Information) regarding the risks and uncertainties that stems from the new Russian Mass Media law.

CTC Media dividends received by MTG

* Including MTG's USD 11.5m Q1 2014 participation in USD 29.9m of non-recurring charges incurred by associated company CTC Media in Q4 2013.

Nice Entertainment, MTGx, MTG Radio

			16% organic sales growth & profitable
--	--	--	---------------------------------------

	2014	2013	2014	2013
(SEKm)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Net sales	815	593	2,778	1,537
Change y-o-y	37%	87%	81%	8%
Change y-o-y at constant FX	36%	89%	80%	10%
Costs	806	581	2,809	1,586
Change y-o-y	39%	84%	77%	12%
EBIT	9	11	-32	-49
EBIT margin	1.1%	1.9%	-1.1%	-3.2%

The sales growth at constant FX was primarily organic but also reflected the consolidation of Nice Entertainment (November 2013). The organic growth in the content production businesses continued to be very healthy driven by Strix Drama, Paprika Latino and DRG, while the radio businesses reported double digit growth.

The increase in operating costs also reflected the organic growth, the consolidation of the acquired businesses, and ongoing investments by MTGx.

Financial Review

Cash Flow

Net cash flow from operations

Cash flow from operations before changes in working capital amounted to SEK 338m (396) in the quarter and SEK 1,337m (1,348) for the full year, and included CTC Media dividend payments of SEK 82m (62) and SEK 297m (246), respectively. Depreciation and amortisation charges totaled SEK 33m (63) in the quarter and SEK 168m (190) for the full year. The Group reported a SEK 288m (16) change in working capital in the quarter and SEK -143m (-130) for the full year. Net cash flow from operations totaled SEK 625m (412) and SEK 1,194m (1,218) for the two respective periods.

Investing activities

Acquisitions of subsidiaries amounted to SEK - (678m) in the quarter and SEK 223m (905) for the full year, while cash flow from the divestment of subsidiaries totaled SEK 230m (-) for the full year. Group capital expenditure on tangible and intangible assets totaled SEK 75m (100) in the quarter and SEK 217m (319) for the full year. Total cash flow used in investing activities therefore amounted to SEK 75m (778) and SEK 211m (1,224) for the two respective periods.

Acquisitions and divestments

The sale of 80% of Zitius Service Delivery AB to TeliaSonera AB was completed in May 2014 and gave rise to a capital gain of SEK 76m.

Total cash flow related to the acquisition of 75% of Trace Partners SAS in June 2014 amounted to SEK 280m. The agreement also includes an option to acquire the remaining 25% of the shares in 2017 or 2018. The preliminary fair value for the net identifiable assets including goodwill was SEK 357m, of which SEK 267m comprised goodwill (existing distribution networks and future potential new customers and programmes) and SEK 72m related to other intangible assets. Transaction costs totalled SEK 12m and are reported in the 'Other operating expenses' line of the Group's income statement. Trace's results are reported within the Group's 'Pay-TV Emerging Markets' business segment. Acquisitions during 2013 related to Nice Group, DRG and Novemberfilm, for a total consideration of SEK 905m for the full year.

Financing activities

Cash flow from financing activities amounted to SEK -367m (687) in the quarter and SEK -1,204m (103) for the full year, and primarily comprised a decrease in borrowings of SEK -618m (750) in the quarter and SEK -778m (876) to SEK 1,055m (1,829), which compared with SEK 1,649m at the end of the third quarter of 2014. Further, the SEK 250m CDON convertible bond was repurchased during the quarter. The full year figure also comprised a SEK 700m (666) annual cash dividend to the shareholders. The net change in cash and cash equivalents therefore amounted to SEK 183m (321) in the quarter and SEK -221m (97) for the full year. The Group had cash and cash equivalents of SEK 643m (765) at the end of the period, compared to SEK 382m as at 30 September 2014.

Net debt & Liquid funds

The Group's net debt position, which is defined as cash and cash equivalents and interest bearing assets less interest bearing liabilities, amounted to SEK 362m (772) at the end of the period, and compared to a net debt position of SEK 928m at the end of the third quarter. The Group's available

liquid funds, including unutilised credit and overdraft facilities, totaled SEK 6,498m (5,569) at the end of the period, and compared to SEK 6,150m as at 30 September 2014.

Holdings in listed companies

The book value of the Group's shareholding in associated company CTC Media was SEK 1,984m (1,931) at the end of the period, and compared with the SEK 2,269m (USD 292m) public equity market value of the shareholding as at the close of trading on the last business day of December 2014.

Related Party Transactions

Related party transactions are of the same character and of similar amounts as the transactions described in the 2013 Annual Report.

Parent Company

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

	2014	2013	2014	2013
(SEKm)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Net sales	12	10	45	46
Net interest and other financial terms	123	122	435	536
Income before tax and appropriations	49	40	207	318

Net interest and other financial items were stable in the quarter and lower for the full year, which primarily reflected the lower prevailing interest rate levels. The parent company had cash and cash equivalents of SEK 402m (429) at the end of the period, compared to SEK 127m at the end of the third quarter of 2014. SEK 5,750m (4,800) of the SEK 5,750m of total available credit facilities, including a SEK 250m overdraft facility, was unutilised at the end of the reporting period.

The total number of outstanding shares was 66,630,189 (66,622,711) at the end of the quarter and excluded the 865,000 Class C shares and 151,935 Class B shares held by MTG in treasury. The total number of issued shares did not change during the period.

Other Information

Accounting policies

This Interim report has been prepared according to 'IAS 34 Interim Financial Reporting' and 'The Annual Accounts Act'. The interim report for the parent company has been prepared according to the Annual Accounts Act - Chapter 9 'Interim Report'.

The Group's consolidated accounts and the parent company accounts have been prepared according to the same accounting policies and calculation methods as were applied in the preparation of the 2013 Annual Report, with the exception of the consolidation of joint ventures, which, in accordance with IFRS 11 Joint Arrangements, is accounted for using the equity method instead of the proportional method. The figures for 2013 have been restated accordingly for the purpose of comparison. Further, IFRS 10 Consolidated Financial Statements replaced IAS 27 Consolidated and Separate Financial Statements, which identifies the concept of control. The new standard has not had any impact on which companies are consolidated in the Group's accounts.

Risks and uncertainties

Significant risks and uncertainties exist for the Group and the parent company. MTG has large scale business interests in Russia, which are affected by recent amendments to the Russian Mass Media Law to reduce the permitted level of aggregate foreign ownership in Russian mass media companies to 20% direct or indirect ownership or control from the beginning of 2016. These changes apply to both MTG's pay-TV businesses and to MTG's 38% shareholding in CTC Media Inc. ("CTC Media"), the Delaware (US) registered and NASDAQ (US) listed company that owns the leading Russian independent media company. As of today, the existing ownership structures of these businesses do not comply with the amended Law and therefore will need to take steps to come into compliance with the Law before the end of 2015. Furthermore, the EU and US have imposed sanctions on named parties in Russia that have ownership interests in Telcrest Investments Limited, which owns approximately 25% of CTC Media, and could therefore limit the potential outcomes for CTC Media. MTG is working closely with its advisors to best protect its various Russian business interests, but changes to the structure or ownership of CTC Media and MTG's pay-TV businesses could result in loss of value for MTG shareholders.

The risks and uncertainties also include the prevailing economic and business environments in other markets and the impact of the Eurozone, as well as the Crimean crisis; commercial risks related to expansion into new territories; other political and legislative risks related to changes in rules and regulations in the various territories in which the Group operates; exposure to foreign exchange rate movements and the US dollar, Russian Rubles and Euro linked currencies in particular; and the emergence of new technologies and competitors. Risks and uncertainties are also described in more detail in the 2013 Annual Report, which is available at www.mtg.com.

2015 Annual General Meeting

The 2015 Annual General Meeting will be held on Tuesday 19 May 2015 in Stockholm. Shareholders wishing to have matters considered at the Meeting should submit their proposals in writing to agm@mtg.com or to The Company Secretary, Modern Times Group MTG AB, Box 2094, SE-103 13 Stockholm, Sweden, at least seven weeks before the Meeting, in order that such proposals may be included in the notices to the Meeting. Further details of the time and place, and when and how to register will be published in advance of the Meeting.

The Board of Directors will propose the payment of an annual ordinary cash dividend of SEK 11.00 (10.50) per share to the Annual General Meeting of shareholders in May. The total proposed dividend payment would therefore amount to approximately SEK 734m (700), based on the maximum potential number of outstanding ordinary shares. The Board of Directors will propose that the remainder of the Group's retained earnings for the year ended 31 December 2014 be carried forward into the accounts for 2015. The proposal is in line with the dividend policy to distribute a minimum of 30 per cent of each year's recurring net profit to shareholders in the form of an annual ordinary cash dividend.

Financial calendar

MTG's financial results for the first quarter 2015 will be published on 22 April 2015.

The Annual Report will be made available at www.mtg.com and from the Company's head office at Skeppsbron 18, Stockholm, Sweden, no later than 10 April 2015.

Conference Call

The company will host a conference call today at 09.00 Stockholm local time, 08.00 London local time and 03.00 New York local time. To participate in the conference call, please dial:

Sweden:	+46 (0) 8 5033 6538
UK:	+44 (0) 20 3427 1905
US:	+1 646 254 3367

The access pin code for the call is 7523722. To listen to the conference call online and for further information, please visit www.mtg.com.

* * *

Any questions? www.mtg.com Facebook: facebook.com/MTGAB Twitter: @mtgab press@mtg.com (or Per Lorentz +46 73 699 27 09) investors@mtg.com (or Stefan Lycke +46 73 699 27 14)

London, 4 February 2015

Jørgen Madsen Lindemann, President & Chief Executive Officer

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

MTG (Modern Times Group MTG AB (publ.)) is an international entertainment group. Our operations span six continents and include TV channels and platforms, online services, content production businesses and radio stations. We are also the largest shareholder in CTC Media, which is Russia's leading independent media company. Our shares are listed on Nasdaq OMX Stockholm ('MTGA' and 'MTGB').

The information in this announcement is that which MTG is required to disclose according to the Securities Market Act and/or the Financial Instruments Trading Act, and was released at 07:30 CET on 4 February 2015.

This report has not been reviewed by the Group's auditors.

Condensed consolidated income statement

	2014	2013	2014	2013
(SEKm)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Net sales	4,371	4,068	15,746	14,073
Cost of goods and services	-2,706	-2,380	-9,779	-8,471
Gross income	1,665	1,688	5,967	5,601
Selling and administrative expenses	-1,193	-1,169	-4,492	-4,121
Other operating revenues and expenses, net	-3	-59	-203	-171
Share of earnings in associated companies and joint ventures	143	104	558	576
One-off items	0	-147	-155	-147
Operating income (EBIT)	611	417	1,675	1,738
Net interest	14	-13	-1	-46
Other financial items	20	41	-23	34
Income before tax	645	445	1,652	1,726
Tax	-174	-184	-480	-558
Net income for the period	471	261	1,172	1,168
Attributable to:
Equity holders of the parent	446	245	1,139	1,092
Non-controlling interest	24	16	33	76
Net income for the period	471	261	1,172	1,168
Basic earnings per share (SEK)	6.70	3.68	17.10	16.39
Diluted earnings per share (SEK)	6.69	3.67	17.07	16.37

Condensed consolidated statement of comprehensive income

	2014	2013	2014	2013
(SEKm)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Net income for the period	471	261	1,172	1,168
Other comprehensive income
Items that are or may be reclassified to profit or loss net of tax:
Currency translation differences	82	-10	424	-141
Cash flow hedge	64	8	136	15
Share of other comprehensive income of associates	-322	20	-407	-76
Other comprehensive income for the period	-175	18	153	-202
Total comprehensive income for the period	296	279	1,325	966
Total comprehensive income attributable to:
Equity holders of the parent	294	273	1,316	900
Non-controlling interest	2	6	9	66
Total comprehensive income for the period	296	279	1,325	966
Shares outstanding at the end of the period	66,630,189	66,622,711	66,630,189	66,622,711
Basic average number of shares outstanding	66,630,189	66,622,711	66,627,771	66,619,668
Diluted average number of shares outstanding	66,729,184	66,711,259	66,709,088	66,697,519

Condensed consolidated statement of financial position

(SEKm)	2014 31 Dec	2013 31 Dec
Non-current assets
Goodwill	3,396	3,463
Other intangible assets	941	841
Total intangible assets	4,337	4,304
Total tangible assets	380	474
Shares and participations	2,058	1,990
Other financial receivables	188	368
Total long-term financial assets	2,246	2,359
Total non-current assets	6,963	7,137
Current assets
Total inventory	2,179	1,810
Total current receivables	4,346	4,395
Cash, cash equivalents and short-term investments	643	765
Total current assets	7,168	6,970
Total assets	14,131	14,107
Shareholders' equity
Shareholders' equity	5,729	5,136
Non-controlling interest	102	159
Total equity	5,831	5,295
Long-term liabilities
Total non-current interest-bearing liabilities	1,001	1,801
Total provisions	823	792
Total non-interest-bearing liabilities	287	181
Total non-current non-interest-bearing liabilities	1,110	973
Total non-current liabilities	2,111	2,774
Current liabilities
Total current Interest-bearing liabilities	57	73
Total current non-interest-bearing liabilities	6,133	5,965
Total current liabilities	6,190	6,038
Total liabilities	8,300	8,812
Total shareholders' equity and liabilities	14,131	14,107

The carrying amounts are considered to be reasonable approximations of fair value for all financial assets and financial liabilities.

(SEKm)	2014 Oct-Dec	2013 Oct-Dec	2014 Jan-Dec	2013 Jan-Dec
Cash flow from operations	338	396	1,337	1,348
Changes in working capital	288	16	-143	-130
Net cash flow from operations	625	412	1,194	1,218
Proceeds from sales of shares	0	-	230	-
Acquisitions of subsidiaries and associates	0	-678	-223	-905
Investments in other non-current assets	-75	-100	-217	-319
Cash flow used in investing activities	-75	-778	-211	-1,224
Net change in loans	-618	750	-778	876
Dividends to shareholders	-	-	-700	-666
Other cash flow from/to financing activities	250	-62	273	-106
Cash flow used in financing activities	-367	687	-1,204	103
Net change in cash and cash equivalents for the period	183	321	-221	97
Cash and cash equivalents at the beginning of the period	382	447	765	739
Translation differences in cash and cash equivalents	78	-4	99	-71
Cash and cash equivalents at end of the period	643	765	643	765

Condensed consolidated statement of changes in equity

(SEKm)	2014 31 Dec	2013 31 Dec
Opening balance	5,295	5,134
Net loss/income for the year	1,172	1,168
Other comprehensive income for the year	153	-202
Total comprehensive loss/income for the year	1,325	966
Effect of employee share option programmes	1	18
Share of option changes in equity of associates	4	-62
Change in non-controlling interests	-6	3
Dividends to shareholders	-700	-666
Dividends to non-controlling interests	-88	-98
Closing balance	5,831	5,295

(SEKm)	2014 Oct-Dec	2013 Oct-Dec	2014 Jan-Dec	2013 Jan-Dec
Net sales	12	10	45	46
Gross income	12	10	45	46
Administrative expenses	-86	-92	-273	-264
Operating income (EBIT)	-74	-82	-228	-219
Net interest and other financial items	123	122	435	536
Income before tax and appropriations	49	40	207	318
Appropriations	123	54	123	54
Tax	-38	-26	-71	-78
Net income for the period	135	69	258	294

Parent company condensed income statement

Parent company condensed statement of comprehensive income

(SEKm)	2014 Oct-Dec	2013 Oct-Dec	2014 Jan-Dec	2013 Jan-Dec
Net income for the period	135	69	258	294
Other comprehensive income
Items that are or may be reclassified to profit or loss net of tax:
Revaluation of shares at market value	0	-	0	-
Other comprehensive income for the period	0	-	0	-
Total comprehensive income for the period	135	69	258	294

	2014	2013
(SEKm)	31 Dec	31 Dec
Non-current assets
Capitalized expenditure	2	-
Machinery and equipment	1	2
Shares and participations	6,398	6,397
Other financial receivables	566	438
Total non-current assets	6,967	6,838
Current assets
Current receivables	10,273	13,196
Cash, cash equivalents and short-term investments	402	429
Total current assets	10,675	13,626
Total assets	17,642	20,463
Shareholders' equity
Restricted equity	338	338
Non-restricted equity	7,124	7,565
Total equity	7,462	7,904
Long-term liabilities
Interest-bearing liabilities	1,024	1,779
Provisions	2	4
Non-interest-bearing liabilities	294	16
Total long-term liabilities	1,320	1,798
Current liabilities
Other interest-bearing liabilities	8,294	7,259
Non-interest-bearing liabilities	566	3,503
Total current liabilities	8,860	10,762
Total shareholders' equity and liabilities	17,642	20,463

Net Sales − Business segments

(SEKm)	Q1 2013	Q2 2013	Q3 2013	Q4 2013	Full year 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	Full year 2014
Free-TV Scandinavia	993	1,080	887	1,149	4,110	1,034	1,065	900	1,111	4,109
Pay-TV Nordic	1,310	1,349	1,308	1,368	5,335	1,404	1,439	1,441	1,472	5,756
Free-TV Emerging Markets	512	692	457	784	2,445	504	680	463	762	2,409
- Baltics, Czech & Bulgaria	478	648	422	741	2,289	472	640	431	721	2,264
Pay-TV Emerging Markets	245	269	268	307	1,089	266	271	333	355	1,225
Central operations, elim & others	-54	-53	-39	-52	-197	-48	-61	-92	-93	-294
Total Viasat Broadcasting	3,007	3,337	2,881	3,557	12,783	3,159	3,394	3,045	3,607	13,205
Nice, MTGx, Radio	242	336	367	593	1,537	483	799	681	815	2,778
Group central operations	56	55	69	58	237	60	57	57	61	235
Eliminations	-96	-122	-126	-140	-484	-104	-141	-115	-112	-472
TOTAL OPERATIONS	3,209	3,605	3,191	4,068	14,073	3,597	4,109	3,669	4,371	15,746
Organic Growth at constant FX	2.3%	5.6%	4.8%	6.0%	4.7%	5.3%	2.7%	5.5%	2.4%	3.8%
FX	-2.6%	-3.1%	-0.2%	-1.0%	-1.7%	-0.4%	0.6%	2.5%	1.8%	1.2%
Divestments	-3.8%	-2.6%	0.0%	0.0%	-1.7%	0.0%	-0.4%	-1.3%	-1.1%	-0.7%
Acquisitions	3.0%	3.0%	4.4%	7.8%	4.6%	7.2%	11.1%	8.3%	4.3%	7.6%
Total growth	-1.1%	2.9%	9.1%	12.8%	6.0%	12.1%	14.0%	15.0%	7.5%	11.9%

Operating income (EBIT) − Business segments

(SEKm)	Q1 2013	Q2 2013	Q3 2013	Q4 2013	Full year 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	Full year 2014
Free-TV Scandinavia	127	209	118	214	668	92	200	120	220	633
Pay-TV Nordic	146	152	156	165	619	155	184	186	184	709
Free-TV Emerging Markets	26	140	-34	83	215	-25	121	-57	91	131
- Baltics, Czech & Bulgaria	38	145	-24	92	251	-12	137	-35	109	199
Pay-TV Emerging Markets	-1	52	27	51	129	22	19	39	25	104
Associated Company CTC Media	235	113	127	111	586	182	116	109	133	540
Central operations, elim & others	-2	-14	-4	-14	-34	0	0	-18	18	0
Total Viasat Broadcasting	531	651	391	610	2,184	426	640	378	673	2,117
Nice, MTGx, Radio	-17	3	-46	11	-49	-64	11	12	9	-32
Group central ops & elims	-60	-76	-57	-57	-250	-61	-62	-61	-71	-255
TOTAL OPERATIONS EXCL NRI	454	578	289	564	1,885	301	589	329	611	1,830
Non-recurring items	-	-	-	-147	-147	-	-155	0	0	-155
TOTAL EBIT	454	578	289	417	1,738	301	434	329	611	1,675
TOTAL EXCL CTC MEDIA AND NRI	219	466	161	454	1,300	119	473	221	478	1,290

Key performance indicators

	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
GROUP
Sales growth (%)	-1.1	2.9	9.1	12.8	6.0	12.1	14.0	15.0	7.5	11.9
Sales growth at constant FX (%)	1.5	6.1	9.1	13.8	7.7	12.5	13.4	12.5	5.7	10.7
Change in operating costs (%) *	2.9	6.0	14.2	21.0	11.0	16.5	15.8	14.1	8.2	13.4
Operating margin (%) *	6.8	12.9	5.1	11.3	9.3	3.3	11.5	5.9	10.7	8.1
Return on capital employed (%)	32	31	29	29		26	25	25	25
Return on equity (%)	30	28	25	25		22	24	24	24
Equity to assets ratio (%)	46	40	40	38		39	35	39	41
Liquid funds (SEKm)	6,459	6,170	6,018	5,569		6,315	6,149	6,150	6,498
Net debt (SEKm)	-17	206	373	772		738	987	928	362
FREE-TV SCANDINAVIA
Sales growth (%)	-3.0	-2.7	1.3	0.2	-1.1	4.1	-1.4	1.4	-3.4	0.0
Sales growth at constant FX (%)	-1.0	-0.4	0.8	0.7	0.0	4.0	-2.9	-1.4	-5.2	-1.6
Change in operating costs (%)	0.0	1.3	3.8	4.2	2.3	8.7	-0.8	1.4	-4.8	1.0
Operating margin (%)	12.8	19.3	13.3	18.6	16.3	8.9	18.8	13.3	19.8	15.4
Commercial share of viewing (%) 1
Sweden (15-49)	32.4	32.7	34.7	31.8	33.1	39.1	30.5	31.0	30.5
Norway (15-49)	17.3	19.5	17.3	16.9	17.7	15.3	17.9	16.0	15.4
Denmark (15-49)	25.4	26.2	25.8	25.2	25.6	25.6	26.6	25.1	27.5
PAY-TV NORDIC
Sales growth (%)	1.8	4.4	7.0	6.4	4.9	7.1	6.7	10.2	7.6	7.9
Sales growth at constant FX (%)	3.5	6.7	6.9	7.0	6.0	7.2	5.4	7.9	6.0	6.6
Change in operating costs (%)	9.8	12.5	12.0	10.6	11.2	7.3	4.9	9.0	7.0	7.0
Operating margin (%)	11.1	11.3	11.9	12.0	11.6	11.0	12.8	12.9	12.5	12.3
Subscriber data ('000s)
Premium subscribers	1,003	989	970	977		978	970	969	982
- of which, satellite	580	569	563	559		553	546	535	526
- of which, 3rd party networks	424	421	407	418		425	425	434	456
Basic satellite subscribers	45	44	42	40		37	36	35	33
Premium satellite ARPU (SEK)	4,955	4,978	5,089	5,075		5,044	5,164	5,302	5,254
FREE-TV EMERGING MARKETS
Sales growth (%)	18.7	23.6	23.8	16.2	20.1	-1.7	-1.8	1.3	-2.8	-1.5
Sales growth at constant FX (%)	25.2	30.6	21.2	17.9	23.5	-1.8	-3.6	-1.0	-4.9	-3.1
Change in operating costs (%)	14.9	17.9	17.8	22.7	18.7	8.6	1.1	6.0	-4.2	2.2
Operating margin (%)	5.0	20.2	-7.4	10.6	8.8	-4.9	17.8	-12.4	12.0	5.4
Commercial share of viewing (%)
Estonia (15-49)	37.6	42.9	39.3	44.3	41.0	41.0	39.9	38.1	42.1
Latvia (15-49)	55.4	57.9	59.1	61.1	58.2	55.0	59.7	58.7	61.9
Lithuania (15-49)	44.4	43.3	48.1	49.0	46.3	47.3	44.5	43.9	45.0
Czech Republic (15-54) 2	37.5	35.9	36.0	34.1	35.9	33.3	34.4	35.6	36.3
Bulgaria (18-49) 3	34.0	32.5	32.8	36.9	34.2	35.7	35.1	35.9	41.1
Hungary (18-49)	7.4	7.2	7.8	7.8	7.5	7.5	6.4	7.1	7.3
PAY-TV EMERGING MARKETS
Sales growth (%)	4.5	3.9	6.1	19.3	8.6	8.3	0.9	24.4	15.6	12.5
Sales growth at constant FX (%)	10.0	9.5	6.7	20.8	12.0	9.8	7.9	24.9	14.7	14.4
Change in operating costs (%)	22.5	7.9	17.5	1.4	11.7	-0.9	16.5	22.4	28.9	16.8
Operating margin (%)	-0.3	19.3	10.2	16.7	11.9	8.2	6.9	11.7	7.1	8.5
Subscriber data ('000s)
Satellite subscribers 4	366	360	360	364		358	344	326	306
Mini-pay subscriptions 5	85,153	89,915	91,380	92,223		94,837	94,197	130,559	131,089
ASSOCIATED COMPANY CTC MEDIA
Share of viewing (%)
CTC Russia (6-54)	11.3	11.6	11.6	10.9	11.3	10.8	10.2	10.3	9.7
Domashny Russia (females 25 - 59)	3.0	3.5	3.9	3.5	3.5	3.1	3.3	3.7	3.1
Peretz (DTV) Russia (25-59)	2.5	2.3	2.3	2.3	2.4	2.4	1.9	2.1	2.0
Channel 31 Kazakhstan (6-54)	13.4	12.6	14.1	12.7	13.2	11.7	13.7	14.9	15.4

1. The universe expanded to include the Discovery and TLC channels, all of the TV4 Group channels, and the TV3 Sport 1 and 2 channels from Q1 2013.

2. The universe expanded from Q1 2013 to include three new CME channels and Prima ZOOM.

3.The source has been changed as of Q4 2014 to Nielsen's Mediaresearch. All four quarters in 2014 as well as the full year figure are now based on the new source. The universe has also expanded from Q1 2014 to include seven new channels.

4.Have been restated following the closure of Raduga.

5.Includes Trace subscriptions from Q3 2014.

* based on operating income excl. associated income and non-recurring items.

For definitions, please refer to the 2013 Annual Report under the heading "Definitions". Data on CTC, CDON and Commercial share of viewing made available after each quarter on www.mtg.com.

Notes to the accounts

1. Condensed sales Group segments

	2014	2013	2014	2013
(SEKm)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Sales external customers
Viasat Broadcasting	3,604	3,553	13,193	12,764
Nice, MTGx, Radio	766	511	2,548	1,295
Parent company & holding companies	1	4	5	14
Total	4,371	4,068	15,746	14,073
Sales between segments
Viasat Broadcasting	3	4	12	19
Nice, MTGx, Radio	49	81	229	242
Parent company & holding companies	60	54	230	224
Total	112	140	472	484

2. Acquisitions - fair values

Recognised values	Trace
Total assets	272
Long-term liabilities	-182
Goodwill	267
Total consideration	357
Cash and cash equivalents in acquired businesses	-28
Borrowings in acquired businesses	46
Non-paid consideration	-95
Cash flow from acquisition	280

	2014	2014
Contributions from acquisitions	Oct-Dec	Jul-Dec
Trace
Sales	63	118
Operating income	-3	7
Net income	3	6
Contributions from acquisitions if the acquisition had occurred 1 January		2014 Full year
Trace
Sales		227
Operating income		5
Net income		2

3. Financial liabilities, level 3

	2014	2013
Financial liabilities, level 3	Jan-Dec	Jan-Dec
Accumulated values
Opening balance 1 January	280	206
New acquisitions	138	48
New entries through acquisitions	-	24
Reclassification	-24	-
Sale of companies	-123	-
Changes in fair values	-51	-
Translation differences	6	2
Closing balance 31 December	227	280