Modern Times Group A — Interim / Quarterly Report 2010

Feb 10, 2011

Q4 and Full Year Interim Report 2010

10 February 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 fourth quarter and full year ended 31 December 2010.

RECORD RESULTS & INCREASED DIVIDEND

Fourth Quarter Highlights*

• Net sales up 12% year on year at constant exchange rates and up 5% year on year at reported exchange rates to SEK 3,618 (3,461) million
• Operating income up 14% year on year to SEK 653 (573) million, with increased operating margin of 18% (17%), when excluding SEK 93 (101) million of associated company income and SEK -3,352 million of non-recurring items in the fourth quarter of 2009
• Total operating income of SEK 746 (-2,678) million
• Pre-tax profit of SEK 741 (-2,772) million
• Net income from continuing operations of SEK 634 (-2,880) million
• Total net income of SEK 2,359 (-2,845) million when including SEK 1,725 (35) million impact of discontinued operations
• Basic earnings per share of SEK 9.40 (-43.90) from continuing operations
• Total basic earnings per share of SEK 35.43 (-43.36)
• Receipt of USD 19 million or SEK 131 million of dividends from CTC Media, Inc.
• Distribution and listing of CDON Group shares in December 2010

Full Year Highlights*

• Net sales up 12% year on year at constant exchange rates and up 5% year on year at reported exchange rates to SEK 13,101 (12,427) million
• Operating income up 27% year on year to SEK 1,941 (1,529) million, with an increased operating margin of 15% (12%), when excluding SEK 413 (270) million of associated company income and SEK -3,352 million of non-recurring items in the fourth quarter of 2009
• Total operating income of SEK 2,355 (-1,553) million
• Pre-tax profit of SEK 2,321 (-1,739) million
• Net income from continuing operations of SEK 1,750 (-2,089)
• Total net income of SEK 3,541 (-2,008) million when including SEK 1,790 (81) million impact of discontinued operations
• Basic earnings per share of SEK 26.22 (-32.08) from continuing operations
• Total basic earnings per share of SEK 53.34 (-30.86)
• Receipt of USD 31 million or SEK 216 million of dividends from CTC Media, Inc.
• Board of Directors to propose annual cash dividend of SEK 7.50 (5.50) per share to AGM in May 2011

* 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 and 2009, 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.

Hans-Holger Albrecht, President and Chief Executive Officer, commented: "MTG has delivered another year of record sales and profits. We generated 12% year on year sales growth at constant exchange rates in 2010 following advertising market growth, further advertising market share gains and net subscriber intake. Operating profits were up 27% for the year when excluding associated company income and the one-off items in 2009, with an increased operating margin of 15%. This demonstrates the significant operating leverage in the business, with our free-TV Scandinavia and pay-TV Nordic businesses reporting increased full year margins of 25% and 18%, respectively.

"We continue to benefit from our balanced mix of advertising and subscription revenues and the synergies of being an integrated free and pay-TV operator with the largest broadcast footprint in Europe. The Scandinavian advertising markets have performed well throughout the year with rising volume and pricing levels, and we also grew our sales at constant exchange rates in the emerging markets where the recovery is still lagging. We now have more than one million premium pay-TV subscribers in the Nordic region and 50 million subscriptions to our mini-pay channels in Central and Eastern Europe and the US. We have added new channels and platforms to our portfolio during the year and our free and pay-TV channels are now more widely available on more broadcast platforms than ever. We have also selectively invested in programming and in our HD, 3D and video-ondemand services.

"Our high levels of cash conversion and flexible financial position are reflected in the decision to propose an increased annual dividend payment of SEK 7.50 per share to this year's AGM. This increase in the pay-out reflects our commitment to delivering enhanced total shareholder returns and follows the more than SEK 2 billion equity dividend of CDON Group shares in December. The demerger and distribution of CDON Group is further evidence of the Group"s streamlined focus on our core broadcasting operations. We continue to review organic and acquisition-led opportunities to invest in the development of the Group"s market presence and competitive positioning."

Significant Events

Following the resolution passed at an Extraordinary General Meeting of shareholders held on 21 October 2010, a prospectus regarding the demerger, distribution and listing of MTG's wholly owned subsidiary CDON Group AB was published on 10 December 2010. CDON Group"s shares commenced trading on the Mid Cap market of Nasdaq OMX Stockholm under the "CDON" symbol on 15 December 2010. The record date for the dividend of all of the shares in CDON Group to MTG shareholders was 17 December 2010. MTG shareholders received one share in CDON Group for each MTG class A and/or class B share that they held on 14 December. MTG class C shares are not entitled to dividends.

The Group subscribed for 100% of the five year SEK 250 million convertible bond issued by CDON Group in December 2010. The bond is unsubordinated, bears interest of 2.85 percent per annum, and is due to be repaid on 2 December 2015 if not redeemed or converted prior to maturity. The bond may be converted into 6,578,947 CDON Group shares between 15 June 2012 and 1 December 2015. The conversion rate has been set at SEK 38, and represents 125 per cent of the volume-weighted average trading price of the CDON Group share between 15 December 2010 and 14 January 2011 (the first 20 days of trading in CDON Group"s shares).

The Group announced on 21 October that it had arranged a new SEK 6,500 million five year revolving multi-currency credit facility to replace the Group"s existing SEK 3,500 million multi-currency credit facility, which was due in February 2011, and the SEK 3,000 million term loan, which was due in April 2012. The new facility is unsecured, has no required amortisations and was provided by a group of eight leading international banks.

The Group announced on 9 June that it had completed the acquisition of a further 35% of Viastrong Holding AB ("Viastrong") from Strong Media Group Ltd. MTG now owns 85% of Viastrong, which operates the Viasat Ukraine DTH satellite pay-TV platform through Vision TV LCC, and has fully consolidated the operating results of Viasat Ukraine in the "Pay-TV Emerging Markets" business segment since 1 June 2010.

The Group announced on 22 March that Viasat Broadcasting had acquired the exclusive television broadcasting rights to England"s Barclays Premier League in Sweden for the next three seasons. MTG has been broadcasting Premier League matches from the start of the 2010/11 season in August on its Viasat pay-TV channels, including the new Viasat Premier League HD channel. Viasat also signed an agreement in June 2010 with Norwegian broadcasting group TV 2 AS to distribute its three Premier League channels, and announced in July 2010 that its TV 2 Sport joint venture with TV 2 in Denmark was launching two new Premier League channels. Viasat is therefore the only pan-Scandinavian pay-TV operator to offer Barclays Premier League coverage to its subscribers in all three Scandinavian countries. Viasat Broadcasting announced in August that it had also acquired the exclusive broadcasting rights to the Barclays Premier League in Estonia, Latvia and Lithuania.

CTC Media published its fourth quarter 2009 results on 26 February 2010 and announced its intention to pay an aggregate of USD 40 million in cash dividends in 2010 in four instalments of USD 10 million each. The first three instalments were paid in March, June and September 2010. CTC Media then announced on 3 November 2010 that its Board of Directors had declared a dividend of approximately USD 50 million to be paid in the fourth quarter of 2010. MTG therefore received four dividend payments totalling USD 31 million (SEK 216 million) during 2010.

The Group announced on 8 February that it had acquired 50% of Raduga Holdings S.A. ("Raduga") from Continental Media S.A.. Raduga is the sole owner of LCC DalGeoCom, which operates Russian nationwide DTH satellite pay-TV platform Raduga TV. The Group"s interest in Raduga has been proportionally consolidated and reported in the "Pay-TV Emerging Markets" business segment since 8 February 2010.

Financial Summary

(SEK million)	Oct-Dec 2010	Oct-Dec 2009	Change	Jan-Dec 2010	Jan-Dec 2009	Change
Net sales	3,618	3,461	5%	13,101	12,427	5%
Operating income before associated company income & non-recurring items	653	573	14%	1,941	1,529	27%
Associated company income *	93	101	-7%	413	270	53%
Non-recurring items**	-	-3,352	-	-	-3,352	-
Total operating income (EBIT)	746	-2,678	-	2,355	-1,553	-
Net interest & other financial items	-5	-94	-	-34	-185	-
Income before tax	741	-2,772	-	2,321	-1,739	-
Net income from continuing operations	634	-2,880	-	1,750	-2,089	-
Discontinued operations
Net gain from distribution of CDON Group	1,717	-	-	1,717	-	-
Net income contribution from CDON Group	7	35	-	73	81	-
Net income	2,359	-2,845	-	3,541	-2,008	-
Basic earnings per share from continuing operations (SEK)	9.40	-43.90	-	26.22	-32.08	-
Total basic earnings per share (SEK)	35.43	-43.36	-	53.34	-30.86	-
Diluted earnings per share (SEK)	35.19	-43.39	-	53.03	-30.97	-
Total assets	14,002	14,651	-4%	14,002	14,651	-4%

* 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 and MTG"s Q1 2009 participation in CTC Media"s USD 233 million impairment of intangible assets in the fourth quarter of 2008

** Comprising the impairment of goodwill balances of the Group"s Bulgarian and Slovenian operations and intangible asset write-downs by the Group"s Baltic operations in the fourth quarter of 2009 and the non-recurring costs for Playahead.com in the fourth quarter of 2009

Operating Review

Following the distribution of CDON Group, MTG"s results are reported for six business segments – "Free-TV Scandinavia", "Pay-TV Nordic", "Free-TV Emerging Markets", "Pay-TV Emerging Markets", "CTC Media", and "Other Businesses". Group sales were up 12% year on year in the fourth quarter and 12% for the full year at constant exchange rates. Each of the Group"s business segments reported sales growth at constant exchange rates for both periods.

Group operating costs increased year on year to SEK 2,965 (2,887) million in the quarter and to SEK 11,160 (10,898) million for the full year, and were up 10% and 8% year on year at constant exchange rates for the respective periods. This reflected the launch or re-launch of five free-TV channels and the addition of ten new pay-TV channels since the beginning of 2009, as well as ongoing programming investments in Scandinavia and the Emerging Markets, the signing or renewal of key sports rights acquisition contracts, and the year on year effect of the consolidation of the results of the Ukrainian and Russian pay-TV platforms. Group depreciation and amortisation charges totalled SEK 57 (57) million in the fourth quarter and SEK 218 (230) million for the full year.

When excluding associated company income and non-recurring items, the Group reported a 14% year on year increase in operating profits to SEK 653 (573) million in the fourth quarter and a 27% increase to SEK 1,941 (1,529) million for the full year, with increased operating margins of 18% (17%) and 15% (12%) for the two respective periods.

Net interest and other financial items amounted to SEK -5 (-94) million in the fourth quarter and SEK -34 (-185) million for the full year, which included the year on year reduction of net interest expenses to SEK -15 (-63) million and SEK -70 (-163) million for the two respective periods. The CDON Group convertible bond has been initially recognised on MTG"s balance sheet at the transaction price less the fair value of the option to convert the bond into CDON Group shares, which is comparable to the net present value. The resulting effect on the Group"s income statement comprises the accrual of interest income at a level corresponding to a market interest rate, and the recognition as a non-cash financial item of the change in the fair value of the option element of the bond between the balance sheet dates. The change in value of the option element between the listing of CDON Group"s shares on 15 December and 31 December was SEK 2 million. The year on year change in other financial items also included non-cash financial gains of SEK 17 million in the fourth quarter and SEK 69 million gain for the full year 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 pre-tax profits of SEK 741 (-2,772) million in the fourth quarter and SEK 2,321 (-1,739) million for the full year.

Group tax charges totalled SEK -107 (-109) million in the fourth quarter and SEK -571 (-350) million for the full year. The fourth quarter charges were positively affected by the valuation of tax losses carried forward and the reversal of over-accrued tax charges for previous years. The Group consequently reported net profits from continuing operations of SEK 634 (-2,880) million in the quarter and SEK 1,750 (-2,089) million for the twelve month period.

The Group reported a SEK 1,717 million non-recurring and non-cash gain in its financial results for the fourth quarter and full year. The gain is due to the distribution of all of the shares in CDON Group in December 2010, and represents the difference between the SEK 2,042 million market value of CDON Group (based on the SEK 30.79 average trading price of the CDON Group share between 15 and 17 December 2010) and the SEK 326 million book value at which the subsidiary was held on Group"s balance sheet as at 30 November 2010. The Group also reported SEK 7 (35) million and SEK 73 (81) million of net income from discontinued operations for the two respective periods of 2010. CDON Group has been excluded from continuing operations and its net income is reported as discontinued operations for both the current and comparable prior reporting periods. The Group therefore reported total net income of SEK 2,359 (-2,845) million in the quarter and SEK 3,541 (-2,008) million for the full year.

The weighted average number of shares outstanding was 66,261,417 (65,895,205) during the fourth quarter and 66,024,365 (65,891,592) during the twelve month period, which reflected the increase in the total number of outstanding shares from 65,896,815 at the end of December 2009 to 66,342,124 at the end of 2010. 297,002 MTG Class B shares were issued during the quarter following the exercise of share options granted under the 2006 and 2007 long term incentive programmes. Group basic earnings per share for continuing operations amounted to SEK 9.40 (-43.90) for the quarter and SEK 26.22 (-32.08) for the full year, while total basic earnings per share amounted to SEK 35.43 (-43.36) and SEK 53.34 (-30.86) for the two respective periods.

Free-TV Scandinavia

16% year on year Sales Growth for the Full Year at constant exchange rates with a 25% Operating Margin

(SEK million)	Oct-Dec 2010	Oct-Dec 2009	Change	Change at con stant ex change rates	Jan-Dec 2010	Jan-Dec 2009	Change	Change at con stant ex change rates
Net sales	1,229	1,160	6%	12%	4,247	3,820	11%	16%
Operating income	350	282	24%		1,082	820	32%
Operating margin	28%	24%			25%	21%

Sales for the Scandinavian free-TV operations were up 12% year on year in the quarter and 16% for the full year at constant exchange rates, following continued year on year TV advertising market growth in all three Scandinavian countries.

Total operating costs amounted to SEK 879 (878) million in the fourth quarter and SEK 3,165 (2,999) million for the full year. The full year increase reflected programming investments, the launch of the TV10 channel in Sweden in September 2010 and investments in the development of the TV3 PULS channel in Denmark, which was launched at the end of the first quarter of 2009.

The combined operations reported a 24% year on year increase in operating profits in the fourth quarter and a 32% increase for the full year, with increased operating margins of 28% (24%) and 25% (21%) for the two respective periods.

Commercial share of viewing (%) (15-49)	Oct-Dec 2010	Jul-Sep 2010	Oct-Dec 2009
Sweden (TV3, TV6, TV8, TV10/ZTV)	35.2	38.8	35.9
Norway (TV3, Viasat4)	23.1	29.1	26.4
Denmark (TV3, TV3+, TV3 PULS)	24.7	24.8	25.2

MTG"s combined media house target audience share in Sweden was down year on year in the fourth quarter but up for the year as a whole from 36.1% to 36.8%. New sports-focused channel TV10, which was launched in September, performed well and achieved a commercial target audience share of 1.4% in the fourth quarter. The national penetration of TV6 increased to 88% in the fourth quarter, whilst TV3 and TV8 reported stable penetration levels of 87% and 66%, respectively.

The combined commercial target audience share for the Norwegian media house was also down year on year in the fourth quarter and for the year as a whole from 27.3% to 26.4%. The audience share was impacted by the launch of two new competing free-TV channels during the fourth quarter. Both TV3"s and Viasat4"s national penetration levels increased in the quarter, to 92% and 75% respectively.

The combined target audience share for the Danish media house was stable quarter on quarter but down slightly year on year. The audience share was however up for the full year, from 23.3% to 24.5% and was the highest level achieved since 2001. This reflected the weaker than anticipated performance of certain local productions on the flagship TV3 channel offset by a particularly strong performance by TV3+.

Pay-TV Nordic

8% year on year Sales Growth for the Full Year at constant exchange rates with an 18% Operating Margin

(SEK million)	Oct-Dec 2010	Oct-Dec 2009	Change	Change at con stant ex change rates	Jan-Dec 2010	Jan-Dec 2009	Change	Change at con stant ex change rates
Net sales	1,137	1,093	4%	10%	4,484	4,327	4%	8%
Operating income	208	192	8%		822	725	13%
Operating margin	18%	18%			18%	17%

The pay-TV operations in the Nordic region 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 25 Viasat-branded pay-TV channels via a wide range of third party pay-TV networks. The Nordic pay-TV business reported 10% year on year sales growth at constant exchange rates in the fourth quarter and 8% growth for the full year.

(000's)	Dec 2010	Sep 2010	Dec 2009
Premium subscribers	1,057	1,041	997
of which, DTH satellite subscribers	663	666	685
of which, third party network subscribers*	394	375	312
Basic DTH satellite subscribers	43	46	45
DTH satellite value-added service subscribers
ViasatPlus	158	153	141
Multi-room	235	229	211
High definition	210	183	106

* Includes premium subscribers on both third party IPTV (broadband) and cable networks

Viasat added 16,000 net new premium subscribers in the fourth quarter and has added 60,000 premium subscribers since the end of the fourth quarter of 2009. The growth was driven by continued premium subscriber intake on third party networks. The DTH satellite premium subscriber base declined slightly quarter on quarter but also reported lower overall customer churn levels. This reflected a year on year and quarter on quarter growth in the premium DTH subscriber base in Sweden, which was offset by declines in the Norwegian and Danish subscriber bases. The number of subscribers to Viasat"s recordable digital set-top box, multi-room and HD services continued to increase quarter on quarter and year on year, and the Viasat OnDemand internet pay-TV portal also continued to develop according to plan following the launch of subscription video-on-demand services in Denmark, Norway and Sweden in February 2010.

Annualised average revenue per premium DTH subscriber (ARPU) increased year on year to SEK 4,555 (4,435) in the fourth quarter, which was equivalent to 7% growth at constant exchange rates and reflected price increases and ongoing customer uptake of value-added services.

Total operating costs for the Pay-TV Nordic business amounted to SEK 929 (901) million in the fourth quarter and SEK 3,662 (3,602) million for the full year. The higher year on year increase at constant exchange rates reflected the addition of seven new Viasat-branded channels since the beginning of 2009 and increased programming investments in premium sports content.

The Nordic pay-TV business reported a 8% year on year increase in operating profits in the fourth quarter and a 13% increase for the full year, with stable operating margins of 18% (18%) in the quarter and an increased operating margin of 18% (17%) for the full year.

Viasat moved further ahead in December when it became the first Nordic TV operator to launch a 3D TV service. A selection of movies has been made available on-demand to satellite subscribers with 3D enabled TV sets and Viasat OnDemand digital set-top boxes. Viasat was also the first in the Nordic region to broadcast live sports in 3D, and will broadcast live 3D coverage of matches from the final stages of the current UEFA Champions League football season.

Free-TV Emerging Markets

(SEK million)	Oct-Dec 2010	Oct-Dec 2009	Change	Change at con stant ex change rates	Jan-Dec 2010	Jan-Dec 2009	Change	Change at con stant ex change rates
Net sales	631	652	-3%	6%	2,004	2,095	-4%	4%
Operating income	56	60	-6%		-43	-84	-
Operating margin	9%	9%			-	-

Sales Growth at constant exchange rates in more stable market conditions with improved profitability levels

The Group"s Emerging Market free-TV operations comprise a total of 18 free-TV channels in the Baltics, the Czech Republic, Bulgaria, Hungary, Slovenia and Ghana.

Combined sales for the Group"s Free-TV Emerging Market operations were up 6% year on year at constant exchange rates in the fourth quarter and up 4% for the full year, following TV advertising market growth and market share gains in almost all countries.

Combined operating costs of SEK 575 (592) million in the fourth quarter and SEK 2,048 (2,179) million for the full year were up slightly year on year at constant exchange rates for both periods, which reflected ongoing selective programming investments offset by the previously introduced cost reduction measures. The combined operations therefore reported a slight year on year decline in operating profits in the fourth quarter with an operating margin of 9%, and a near halving of operating losses for the full year.

Baltics, Czech Republic and Bulgaria

(SEK million)	Oct-Dec 2010	Oct-Dec 2009	Change	Change at con stant ex change rates	Jan-Dec 2010	Jan-Dec 2009	Change	Change at con stant ex change rates
Net sales	556	575	-3%	6%	1,754	1,852	-5%	3%
Operating income	75	78	-4%		52	34	55%
Operating margin	13%	14%			3%	2%

Combined sales for the Group"s free-TV operations in the Baltics, Czech Republic and Bulgaria were up 6% year on year at constant exchange rates in the quarter and up 3% for the full year.

Combined operating costs for the businesses of SEK 481 (497) million in the fourth quarter and SEK 1,702 (1,818) million for the full year were up at constant exchange rates for both periods, which reflected selective programming investments offset by the previously introduced cost reduction initiatives. The combined businesses therefore reported stable year on year operating profits in the fourth quarter and a 55% increase in profits for the full year, with operating margins of 13% (14%) and 3% (2%) for the two respective periods.

Commercial share of viewing (%) (target audience)	Oct-Dec 2010	Jul-Sep 2010	Oct-Dec 2009
Estonia (TV3, 3+, TV6) (15-49)	42.2	40.0	42.9
Latvia (TV3, 3+, TV6) (15-49)	39.2	38.4	34.7
Lithuania (TV3, TV6) (15-49)	43.6	41.8	44.0
Czech Republic (TV Prima, Prima COOL) (15-54)	25.9	25.9	20.4
Bulgaria (Nova TV, Diema, Diema 2, Diema Family) (18-49)	27.2	28.2	29.2

Sales for the Group"s combined Baltic businesses grew by 20% year on year in the quarter and by 6% for the full year at constant exchange rates. The channels reported an increased combined pan-Baltic target audience share of 42.0% (41.1%) in the quarter following quarter on quarter target audience share gains in all three countries and particularly strong year on year gains in Latvia where TV3 aired a number of high rating local productions. The "TV3 Play" internet based catch-up TV service was launched in Latvia in September and Estonia in November.

The Group"s Czech operations reported 8% year on year sales growth at constant exchange rates in the quarter and 4% growth for the full year, following further TV advertising market share gains. The TV Prima and Prima COOL channels both reported significant year on year increases in target audience share, with a stable combined quarter on quarter performance.

The Group"s Bulgarian operations reported an 8% year on year decline in revenues at constant exchange rates in the fourth quarter, and stable revenues for the full year. The operations increased their TV advertising market shares in declining markets for both periods. The Bulgarian channels" target audience shares were down year on year and quarter on quarter, and MTG is investing in programming in order to drive up the ratings performance moving forward. The internet based catchup TV service "Nova Play" was launched in June.

Pay-TV Emerging Markets

Continued Sales Growth at constant exchange rates with Ongoing Investment in Emerging Satellite Platforms

(SEK million)	Oct-Dec 2010	Oct-Dec 2009	Change	Change at con stant ex change rates	Jan-Dec 2010	Jan-Dec 2009	Change	Change at con stant ex change rates
Net sales	225	225	0%	9%	896	875	2%	12%
Operating income	29	61	-52%		112	168	-33%
Operating margin	13%	27%			12%	19%

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 15 of its channels via third party pay-TV networks to subscribers in 25 countries across Central and Eastern Europe and in the United States.

Sales for the combined operations were up 9% year on year in the quarter at constant exchange rates and 12% for the full year. This reflected continued subscriber intake in the Baltics, Ukraine and Russia, 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)	Dec 2010	Sep 2010	Dec 2009
Premium DTH satellite subscribers	245	225	216
Basic DTH satellite subscribers*	185	148	24
Mini-pay TV subscriptions	50,245	46,629	40,778

* Including Raduga TV Russian DTH platform subscribers from Q1 2010

Viasat"s total DTH satellite subscriber base grew both year on year and quarter on quarter, following continued premium subscriber intake on the Ukrainian platform and basic subscriber intake on the Raduga TV platform in Russia. The wholesale mini-pay business added 3.6 million new subscriptions in the quarter and passed the 50 million subscription mark for the first time and only seven years after the business was launched.

Operating costs for the Emerging Market pay-TV business of SEK 196 (164) million in the quarter and SEK 784 (707) million for the full year were up even more year on year at constant exchange rates following the launch of six new channels including Nova Sport in Bulgaria during since the beginning of 2009, the 50% consolidation of Raduga TV in Russia and the full consolidation of the Ukrainian platform. The combined businesses therefore reported operating profits of SEK 29 (61) million in the quarter and SEK 112 (168) million for the full year, with operating margins of 13% (27%) and 12% (19%) for the two respective periods.

CTC Media

The Group reports its 38.3% 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 17% year on year to USD 125 (107) million in the third quarter of 2010 and by 9% to USD 559 (513) million for the twelve months ended 30 September. CTC Media"s operating profits grew by 5% year on year to USD 37 (35) million in the third quarter, and amounted to USD 143 (-24) million for the twelve month period. The company reported a 9% year on year increase in pre-tax profits to USD 38 (35) million in the third quarter, and pre-tax profits of USD 152 (-50) million for the twelve months ended 30 September 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 stockbased compensation expense recognised in conjunction with the settlement of litigation brought by CTC Media. CTC Media"s results for the fourth quarter of 2008 included USD 233 million of charges arising from the impairment of intangible assets.

MTG"s equity participation in the earnings of CTC Media therefore amounted to SEK 97 (100) million in the fourth quarter and SEK 405 (254) million for the full year. CTC Media will publish its results for the fourth quarter and full year ended 31 December 2010 on 1 March 2011.

As mentioned above under "Significant Events", CTC Media paid four quarterly cash dividends totalling USD 80 million in 2010, including a USD 50 million dividend in the fourth quarter. The Group therefore received a dividend payment of USD 19 million, SEK 131 million, in the fourth quarter and payments totalling USD 31 million, SEK 216 million, during 2010.

(SEK million)	Oct-Dec 2010	Oct-Dec 2009	Change	Change at con stant ex change rates	Jan-Dec 2010	Jan-Dec 2009	Change	Change at con stant ex change rates
Net sales	455	438	4%	10%	1,804	1,716	5%	11%
Operating income	53	44	19%		175	93	87%
Operating margin	12%	10%			10%	5%

Other Businesses

The "Other Businesses" segment primarily comprises the Group"s Radio, Bet24 and Modern Studios businesses. The Group"s radio operations comprise the leading national commercial networks in Sweden and Norway, as well as national and local stations in the Baltics, whilst Modern Studios comprises the Group"s content production businesses including the Strix Television production company. Combined sales for the businesses were up 10% year on year in the quarter and 11% for the full year at constant exchange rates, which reflected healthy sales growth and further advertising market share gains for the Norwegian radio operations in particular.

Operating costs for the combined businesses totalled SEK 403 (394) million in the fourth quarter and SEK 1,629 (1,623) million for the full year, and the higher increase at constant exchange rates reflected both the incremental cost of sales, and investments in the local P5 city radio network in Norway. The combined businesses therefore reported a 19% year on year increase in operating profits to SEK 53 (44) million in the quarter and a near doubling of operating profits for the full year to SEK 175 (93) million, with increased operating margins of 12% (10%) and 10% (5%) for the two respective periods.

Financial Review

Cash Flow

The Group"s cash flow from operations before changes in working capital amounted to SEK 578 (569) million in the fourth quarter and SEK 1,810 (1,225) million for the full year, which included the receipt of the four CTC Media dividend payments totalling SEK 216 million. The Group reported a SEK 431 (-110) million change in working capital in the fourth quarter, which reflected timing differences in the payments of accounts receivables and payables. The Group reported a SEK -277 (101) million change in working capital for the full year following the payment made for the English Premier League football rights in Sweden in the second quarter and reflecting the low working capital balances at the beginning of the year. Group net cash flow from operations therefore totalled SEK 1,009 (459) million in the quarter and SEK 1,533 (1,326) million for the twelve month period.

The Group"s investments in businesses amounted to SEK 12 (1) million in the quarter and SEK 275 (146) million for the full year, and primarily comprised the payment for 50% of Russian DTH satellite pay-TV platform Raduga TV in February 2010, and an additional 35% stake in the Ukrainian DTH satellite pay-TV platform in June 2010. Group capital expenditure on tangible and intangible assets totalled SEK 38 (83) million in the quarter and SEK 157 (156) million for the full year, which was equivalent to approximately 1% of Group net sales for both periods. The Group also subscribed for 100% of the five year SEK 250 million convertible bond issued by CDON Group on 2 December.

Cash flow from/to financing activities amounted to SEK -707 (-610) million in the fourth quarter and SEK -985 (-1,231) million for the full year, which primarily reflected the paying down of SEK -766 million on the Group"s revolving credit facility during the year, the SEK -363 million dividend payment to MTG shareholders in the second quarter, the SEK 182 million of cash received from the exercising of employee share options during the year, and the SEK -88 million impact of the distribution of CDON Group in the fourth quarter. SEK 2,700 (3,500) million of the Group"s SEK 6,500 million revolving credit facility was drawn as at 31 December, compared with drawings of SEK 3,500 million at the end of the third quarter of 2010.

The net change in cash and cash equivalents therefore amounted to SEK 2 (-235) million in the fourth quarter and SEK -135 (-206) million for the full year. The Group had SEK 500 (737) million of cash and cash equivalents at the end of the period, compared to SEK 531 million at the end of the third quarter 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 2,026 (2,749) million at the end of the period and compared to a net debt position of SEK 3,031 million at the end of the third quarter of 2010.

Liquid funds

The Group"s available liquid funds, including unutilised credit facilities, totalled SEK 4,400 (3,837) million at the end of the period, compared to SEK 3,631 million at the end of the third quarter of 2010.

Holdings in listed companies

The book value of the Group"s 38.3% shareholding in associated company CTC Media was SEK 1,785 million at the end of the period, and compared with the approximately SEK 9,564 million

(USD 1,406 million) public equity market value of the shareholding as at the close of trading on the last business day of 2010.

Equity

The Group reported SEK -85 (206) million of currency translation differences in equity in the fourth quarter and SEK -820 (-883) million of differences for the full year. The Group does not hedge its equity exposure to currency translation effects. The Group"s total equity amounted to SEK 6,238 (5,680) million at the end of the period, compared to SEK 5,857 million at the end of the third quarter of 2010.

RELATED PARTY TRANSACTIONS

On 10 December 2010, the Group announced that it had subscribed for 100% of the five year SEK 250 million convertible bond issued by CDON Group. The bond is unsubordinated, bears interest of 2.85 percent per annum, and is due to be repaid on 2 December 2015 if not redeemed or converted prior to maturity. The bond may be converted into CDON Group shares between 15 June 2012 and 1 December 2015. The conversion rate has been set at SEK 38 per share, which corresponds to 125 per cent of the volume-weighted price of the CDON Group share over 20 trading days between the first day of trading in the share on 15 December 2010 and Friday 14 January 2011. MTG may therefore convert the bond into a maximum of 6,578,947 CDON Group shares. CDON Group is no longer a related party after the listing on Nasdaq OMX.

Other related party transactions for the period are of the same character and similar amounts as the transactions described in the 2009 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, and also holds shares in the parent companies of the operating business segments.

The MTG parent company reported net sales of SEK 10 (12) million in the fourth quarter and SEK 41 (52) million for the full year. Net interest and other financial items totalled SEK 332 (952) million and SEK 543 (1,259) million for the two respective periods, and included SEK 73 million of dividends received from subsidiaries. Income before tax amounted to SEK 272 (888) million in the quarter and SEK 368 (1,107) million for the twelve month period. The parent company had cash and cash equivalents of SEK 136 (536) million at the end of the period, compared to SEK 454 million at the end of the third quarter of 2010. SEK 3,900 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 to and in new territories, legislative and regulatory risks in the various countries in which the Group operates, and technology risks. No additional risks are believed to have developed over and above those described in the 2009 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 with the same methods of computation as were applied in the preparation of the 2009 Annual Report, with the exception of the application of "IFRS 3 Business Combinations" and "IAS 27 Consolidated and Separate Financial Statements" as amended. The changes and amendments relate to:

• the definition of businesses
• the expensing of acquisition transaction costs
• the determination of the fair value of contingent considerations at the time of acquisition and the effects of the revaluation of liabilities related to conditional considerations recognised in the income statement or other comprehensive income
• additional acquisitions made after contol has been achieved are recognised as shareholder transactions and recorded directly to equity
• two alternative methods for reporting non-controlling interests and goodwill the fair vaule method and the proportionate share of the acquired net assets method. The choice between the two methods is made on an individual basis for each acquisition

The changes have been applied from 1 January 2010. Other new or revised IFRS principles and IFRIC interpretations have not had any material effect on the financial position or results of the Group.

With regard to the parent company, "RFR 2 Reporting for Legal Entities" has been applied since 1 January 2010 and stipulates that the revised "IAS 1 Presentation of Financial Statements" must also be applied to the parent company, with some exceptions, and costs associated with a business combination (IFRS 3) continue to be included in the cost of acquisition of the legal entity.

This report have not been subjet to review by the Group"s auditors.

2011 Annual General Meeting of shareholders

The 2011 Annual General Meeting will be held on 18 May 2011 in Stockholm. Shareholders wishing to have matters considered at the Annual General Meeting should submit their proposals in writing to agm@mtg.se or to The Company Secretary, Modern Times Group MTG AB, Box 2094, SE-103 13 Stockholm, Sweden, at least seven weeks before the Annual General Meeting, in order that the proposal may be included in the notices to the meeting. Further details on how and when to register will be published in advance of the Meeting.

The Board of Directors will propose to the Annual General Meeting of shareholders that an ordinary dividend of SEK 7.50 per share be paid to shareholders as at the record date. The total proposed dividend payment would therefore amount to approximately SEK 501 million, based on the maximum potential number of outstanding ordinary shares. The Board of Directors will propose that the remainder of the Company"s retained earnings for the year ended 31 December 2010 be carried forward into the accounts for 2011.

Nomination Committee for the 2011 Annual General Meeting of shareholders

A Nomination Committee of major MTG shareholders has been convened in accordance with the resolution of the 2010 Annual General Meeting of shareholders. The Nomination Committee is comprised of Cristina Stenbeck on behalf of Investment AB Kinnevik; Peder Hasslev on behalf of AMF Pension; Hans EK on behalf of SEB Fonder and Johan Ståhl on behalf of Lannebo Fonder.

Information about the work of the Nomination Committee can be found on MTG"s corporate website at www.mtg.se. Shareholders wishing to propose candidates for election to the MTG Board of Directors should submit their proposals in writing to agm@mtg.se or to The Company Secretary, Modern Times Group MTG AB, Box 2094, SE-103 13, Stockholm, Sweden.

Annual Report 2010

The Annual Report will be made available at www.mtg.se and from the Company"s head office at Skeppsbron 18, Stockholm, Sweden, by 7 April 2011.

First Quarter 2011 Financial Results

MTG"s financial results for the first quarter and three months ended 31 March 2011 will be published on 18 April 2011.

10 February 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 3786 International: +44 (0)20 7138 0824 US: +1 212 444 0481 The access pin code for the conference is 4351239.

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 Tel: +46 (0) 8 562 000 50

Investor & Analyst Enquiries Matthew Hooper Tel: +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 a leading international entertainment broadcasting group with the largest geographical broadcast footprint in Europe. MTG's Viasat Broadcasting is the leading free-TV and pay-TV operator in Scandinavia and the Baltics, and has broadcasting operations in Bulgaria, Czech Republic, Hungary, Slovenia, Russia, Ukraine and Ghana. Viasat's free-TV and pay-TV channels and pay-TV platforms attract a total of 125 million viewers in 31 countries. 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 region.

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 Year end Report is such which Modern Times Group MTG AB is required to disclose under the Securities Markets Act. This information was released for publication at 13.00 CET on 10 February 2011.

CONDENSED CONSOLIDATED	2010	2009	2010	2009
INCOME STATEMENT (MSEK)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
CONTINUING OPERATIONS
Net sales	3,618	3,461	13,101	12,427
Cost of goods and services	-2,128	-1,983	-7,902	-7,553
Gross income	1,490	1,478	5,199	4,873
Selling and administrative expenses	-813	-880	-3,161	-3,255
Other operating revenues and expenses, net	-24	-25	-97	-90
Share of earnings in associated companies	93	101	413	270
Write-down and one-off costs	-	-3,352	-	-3,352
Operating income (EBIT)	746	-2,678	2,355	-1,553
Net interest and other financial items	-5	-94	-34	-185
Income before tax	741	-2,772	2,321	-1,739
Tax		-109		-350
Net income for the period from continuing operations	-107	-2,880	-571	-2,089
	634		1,750
DISCONTINUED OPERATIONS
Net gain from distribution of CDON Group	1,717	-	1,717	-
Net income after tax from discontinued operations	7	35	73	81
Net income for the period from discontinued operations	1,725	35	1,790	81
Net income for the period	2,359	-2,845	3,541	-2,008
Attributable to:
Equity holders of the parent	2,348	-2,857	3,522	-2,033
Non-controlling interests	11	12	19	25
Net income for the period		-2,845		-2,008
	2,359		3,541
Basic earnings per share (SEK) from continuing operations	9.40	-43.90	26.22	-32.08
Diluted earnings per share (SEK) from continuing operations	9.31	-43.93	26.07	-32.19
Total basic earnings per share (SEK)	35.43	-43.36	53.34	-30.86
Total diluted earnings per share (SEK)	35.19	-43.39	53.03	-30.97
CONDENSED STATEMENT OF
COMPREHENSIVE INCOME FOR THE GROUP (MSEK)
Net income for the period	2,359	-2,845	3,541	-2,008
Other comprehensive income
Currency translation differences		206		-883
	-85		-820
Cash flow hedge	2	69	9	-13
Revaluation of shares at market value	1	-	2	8
Share of other comprehensive income of associates	17	-	69	45
Other comprehensive income for the period	-65	274	-739	-843
Total comprehensive income for the period	2,294	-2,570	2,801	-2,851
Total comprehensive income attributable to:
Equity holders of the parent	2,303	-2,583	2,808	-2,853
Non-controlling interests Total comprehensive income for the period	-8	12 -2,570	-7	2 -2,851
	2,294		2,801
Shares outstanding at the end of the period		65,896,815		65,896,815
	66,342,124		66,342,124
Basic average number of shares outstanding	66,261,417	65,895,205	66,024,365	65,891,592
Diluted average number of shares outstanding	66,639,550	65,906,686	66,377,452	65,892,763

CONDENSED STATEMENT OF	2010	2009
FINANCIAL POSITION (MSEK)	31 Dec	31 Dec
Non-current assets
Goodwill	4,928	5,239
Other intangible assets	1,182	1,423
Tangible assets	297	346
Shares and participations	1,894	1,818
Other financial long-term assets	346	199
	8,648	9,026
Current assets
Inventory	1,684	1,940
Current receivables	3,170	2,948
Cash and cash equivalent	500	737
	5,354	5,625
Total assets	14,002	14,651
Shareholders' equity
Shareholders" equity	5,986	5,381
Non-controlling interests	253	298
	6,238	5,680
Long-term liabilities
Interest-bearing liabilities	2,683	3,509
Provisions	569	645
Non-interest-bearing liabilities	59	22
	3,311	4,175
Current liabilities
Interest-bearing liabilities	83	54
Non-interest-bearing liabilities	4,370	4,741
	4,452	4,796
Total shareholders' equity and liabilities	14,002	14,651

CONDENSED CONSOLIDATED	2010	2009	2010	2009
STATEMENT OF CASH FLOWS (MSEK)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Cash flow from operations	578	569	1,810	1,225
Changes in working capital	431	-110	-277	101
Net cash flow from operations	1,009	459	1,533	1,326
Investments in shares in subsidiaries and associates	-12	-1	-275	-146
Investments in other non-current assets	-38	-83	-157	-156
Other cash flow from investing activities	-250	-	-250	-
Cash flow to/from investing activities	-300	-84	-683	-301
Net change in loans	-819	-871	-766	-1,152
Dividends to shareholders	-	-	-363	-329
Distribution of CDON Group to shareholders	-46	220	-88	212
Other cash flow from/to financing activities	159	41	232	39
Cash flow to/from financing activities	-707	-610	-985	-1,231
Net change in cash and cash equivalents for the period	2	-235	-135	-206
Cash and cash equivalents at the beginning of the period	531	977	737	975
Translation differencies in cash and cash equivalents	-34	-6	-102	-32
Cash and cash equivalents at end of the period	500	737	500	737

CONDENSED STATEMENT OF CHANGES	2010	2009
IN EQUITY (MSEK)	31 Dec	31 Dec
Opening balance	5,680	8,980
Total comprehensive income for the period	2,801	-2,851
Effect of employee share option programmes	17	19
Employee options exercised	182	2
Change in non-controlling interests	0	-122
Dividends to shareholders	-363	-329
Dividends to non-controlling interests	-39	-21
Distribution of CDON	-2,042	-
Sale of MTG shares	-	5
Share buy-backs	-	-2
Closing balance	6,238	5,680

CONDENSED INCOME STATEMENT	2010	2009	2010	2009
PARENT COMPANY (MSEK)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Net sales	10	12	41	52
Gross income	10	12	41	52
Administrative expenses	-70	-76	-217	-204
Operating income (EBIT)	-60	-64	-175	-152
Net interest and other financial items	332	952	543	1,259
Income before tax	272	888	368	1,107
Tax	-54	-2	-79	37
Net income for the period	218	886	288	1,144

CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PARENT (MSEK)	2010 Oct-Dec	2009 Oct-Dec	2010 Jan-Dec	2009 Jan-Dec
Net income for the period	218	886	288	1,144
Other comprehensive income
Currency translation differences	-	-	-	35
Revaluation of shares at market value	1	7	2	8
Total comprehensive income for the period	218	893	290	1,187

CONDENSED BALANCE SHEET	2010	2009
PARENT COMPANY (MSEK)	31 Dec	31 Dec
Non-current assets
Shares and participations	3,676	3,702
Other long-term financial assets	12,617	12,137
	16,293	15,839
Current assets
Current receivables	537	613
Cash and cash equivalents	136	536
	673	1,148
Total assets	16,966	16,988
Shareholders' equity
Restricted equity	337	334
Non-restricted equity	8,490	8,818
Shareholders' equity	8,827	9,151
Long-term liabilities
Interest-bearing liabilities	6,516	6,993
Provisions	6	6
	6,522	6,999
Current liabilities
Other interest-bearing liabilities	872	474
Non-interest-bearing liabilities	696	364
	1,568	838
Total shareholders' equity and liabilities	16,966	16,988

NET SALES	Q1	Q2	Q3		Q4 FULL YEAR	Q1	Q2	Q3		Q4 FULL YEAR
BUSINESS SEGMENTS (MSEK)	2009	2009	2009	2009	2009	2010	2010	2010	2010	2010
Free-TV Scandinavia	886.0	983.8		790.5 1,159.5	3,819.9	980.0	1,116.4	922.1	1,228.9	4,247.4
Pay-TV Nordic		1,068.9 1,074.3 1,090.7 1,093.0			4,326.9	1,091.7	1,115.4	1,140.2	1,136.6	4,483.9
Free-TV Emerging Markets - of which Baltics, Czech & Bulgaria	464.1 411.0	612.2 545.2	367.4 320.3	651.7 575.3	2,095.4 1,851.8	433.2 378.0	582.4 510.0	357.1 309.8	631.5 556.0	2,004.2 1,754.0
Pay-TV Emerging Markets	220.1	218.6	210.7	225.4	874.7	218.1	224.5	228.5	224.9	896.0
Viasat Broadcasting central operations & eliminations	-40.4	-42.6	-48.4	-46.1	-177.5	-49.1	-38.6	-33.9	-40.9	-162.6
Total Viasat Broadcasting		2,598.6 2,846.4 2,410.9 3,083.5			10,939.5	2,673.8	3,000.1	2,614.0	3,180.9	11,468.9
Other Businesses	395.4	466.1	416.1	438.3	1,715.9	410.1	482.3	456.5	455.2	1,804.0
Total operating businesses		2,994.0 3,312.5 2,827.0 3,521.8			12,655.3	3,083.9	3,482.4	3,070.5	3,636.1	13,272.9
Group central operations	45.6	46.6	41.2	44.6	178.0	46.5	46.7	46.2	51.7	191.2
Eliminations	-90.6	-121.2	-89.2	-105.5	-406.5	-76.3	-116.4	-99.9	-70.3	-363.0
GROUP TOTAL		2,949.0 3,237.9 2,779.0 3,460.9			12,426.8	3,054.1	3,412.6	3,016.8	3,617.5	13,101.1

OPERATING INCOME (EBIT)	Q1	Q2	Q3		Q4 FULL YEAR	Q1	Q2	Q3		Q4 FULL YEAR
BUSINESS SEGMENTS (MSEK)	2009	2009	2009	2009	2009	2010	2010	2010	2010	2010
Free-TV Scandinavia	202.8	216.0	120.0	281.6	820.4	215.6	297.4	219.3	350.0	1,082.2
Pay-TV Nordic	174.4	179.1	179.7	191.7	724.8	191.3	221.5	201.2	207.8	821.8
Free-TV Emerging Markets	-74.4	32.4	-101.7	59.8	-84.0	-66.0	41.8	-75.3	56.1	-43.4
- of which Baltics, Czech & Bulgaria	-24.2	46.8	-66.8	78.1	33.8	-37.0	63.4	-48.9	74.9	52.4
Pay-TV Emerging Markets	40.4	34.1	31.8	61.3	167.7	40.1	36.4	5.9	29.4	111.7
Associated company CTC Media	-74.7	103.2	125.7	100.0	254.2	104.9	114.6	89.1	96.6	405.1
Viasat Broadcasting central operations & eliminations	2.5	5.9	0.3	12.6	21.3	15.6	4.6	-3.7	2.1	18.5
Total Viasat Broadcasting	271.0	570.8	355.8	706.9	1,904.4	501.4	716.2	436.4	742.0	2,396.1
Other Businesses	-17.1	37.0	29.5	44.0	93.4	24.8	47.6	49.7	52.5	174.6
Total operating businesses	253.9	607.8	385.2	750.9	1,997.8	526.2	763.8	486.1	794.5	2,570.7
Group central operations & eliminations	-41.1	-41.5	-40.2	-76.8	-199.6	-42.8	-65.7	-59.0	-48.4	-215.9
TOTAL ONGOING OPERATIONS	212.7	566.3	345.1	674.1	1,798.2	483.4	698.1	427.1	746.1	2,354.8
Non-recurring items Other Businesses	-	-	-	-47.2	-47.2	-	-	-	-	-
Non-recurring items Viasat Broadcasting	-	-		- -3,304.5	-3,304.5	-	-	-	-	-
GROUP TOTAL	212.7	566.3		345.1 -2,677.6	-1,553.5	483.4	698.1	427.1	746.1	2,354.8

CONDENSED SALES GROUP	2010	2009	2010	2009
CONTINUING SEGMENTS (MSEK)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Sales external customers
Viasat Broadcasting businesses	3,186	3,076	11,446	10,919
Other Businesses	424	385	1,640	1,507
Group central operations & eliminations	7	0	15	1
Total	3,618	3,461	13,101	12,427
Sales to other segments
Viasat Broadcasting businesses	-5	7	23	21
Other Businesses	31	56	164	211
Group central operations & eliminations	45	42	176	175
Total	70	105	363	407

CONDENSED SALES GROUP	2010	2009	2010	2009
DISCONTINUED SEGMENTS (MSEK)	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
External sales	429	615	1,870	1,745
Internal sales	-	0	-	1
Total	429	615	1,870	1,746

	Q1	Q2	Q3		Q4 FULL YEAR	Q1	Q2	Q3		Q4 FULL YEAR
KEY PERFORMANCE INDICATORS	2009	2009	2009	2009	2009	2010	2010	2010	2010	2010
GROUP
Year on year sales growth (%) * Year on year change in operating costs (%) *	11.0 15.4	6.5 10.3	4.3 13.3	1.7 2.6	5.6 9.8	3.6 0.5	5.4 2.0	8.6 4.5	4.5 2.7	5.4 2.4
Operating margin (%) *	9.7	14.1	7.7	16.6	12.3	12.3	16.9	11.2	18.0	14.8
Year on year sales growth at constant exchange rates (%) **	2.6	-1.2	0.1	-0.3	0.2	8.7	11.3	14.5	11.7	11.5
Return on capital employed (%)	22	20	16	15		19	22	24	25
Return on equity (%) Equity to assets ratio (%)	20 46	19 45	16 45	17 39		20 39	23 39	27 38	30 45
Liquid funds (incl unutilised credit facilities), SEK million Net debt (SEK million)	2,668 3,925	2,966 3,603	3,215 3,379	3,837 2,749		3,770 2,847	3,464 3,185	3,631 3,031	4,400 2,026
Subscriber data ('000s)
Group total digital subscribers	1,190	1,056	1,231	1,282		1,400	1,427	1,469	1,540
Group total premium subscribers	1,113	982	1,161	1,213		1,246	1,257	1,275	1,312
FREE-TV SCANDINAVIA
Year on year sales growth (%) Year on year change in operating costs (%)	7.0 0.2	1.3 5.7	-1.7 6.2	7.1 4.7	3.6 4.2	10.6 11.9	13.5 6.7	16.7 4.8	6.0 0.1	11.2 5.5
Operating margin (%)	22.9	22.0	15.2	24.3	21.5	22.0	26.6	23.8	28.5	25.5
Year on year sales growth at constant exchange rates (%) **	0.2	-4.7	-5.5	4.2	-1.2	14.7	18.2	22.0	12.0	16.3
Commercial share of viewing (15-49) (%)
Sweden (TV3, TV6, TV8, TV10/ZTV) Norway (TV3, Viasat4)	33.2 26.4	36.4 28.3	39.5 28.6	35.9 26.4	36.1 27.3	36.1 25.8	37.2 28.3	38.8 29.1	35.2 23.1	36.8 26.4
Denmark (TV3, TV3+, TV3 PULS)	20.3	23.8	23.9	25.2	23.3	24.2	24.1	24.8	24.7	24.5
Penetration (%) TV3 Sweden	86	87	87	88		86	87	87	87
TV6 Sweden	86	87	87	88		87	87	87	88
TV8 Sweden TV3 Norway	64 87	66 87	66 88	65 89		66 91	66 91	66 91	66 92
Viasat4 Norway	62	65	68	68		69	71	74	75
TV3 Denmark 1 TV3+ Denmark 1	67 63	67 63	67 63	68 65		69 64	70 63	70 63	69 62
TV3 PULS Denmark 1		41	41	53		51	48	48	45
PAY-TV NORDIC
Year on year sales growth (%)	11.5	10.5	10.5	7.6	10.0	2.1	3.8	4.5	4.0	3.6
Year on year change in operating costs (%) Operating margin (%)	12.3 16.3	9.9 16.7	11.8 16.5	10.5 17.5	11.1 16.8	0.7 17.5	-0.1 19.9	3.1 17.6	3.0 18.3	1.7 18.3
Year on year sales growth at constant exchange rates (%) **	4.4	3.8	6.4	5.2	5.0	5.9	8.4	8.9	10.0	8.3
Subscriber data ('000s)
Premium subscribers - of which, DTH satellite	900 666	932 666	955 675	997 685		1,013 670	1,025 666	1,041 666	1,057 663
- of which, 3rd party networks	233	266	280	312		343	359	375	394
Basic DTH subscribers	62	55	48	45		44	45	46	43
Premium DTH ARPU (SEK)	4,299	4,397	4,401	4,435		4,356	4,446	4,472	4,555
FREE-TV EMERGING MARKETS
Year on year sales growth (%) Year on year change in operating costs (%)	9.6 42.8	4.6 15.8	-5.0 29.7	-13.6 -4.3	-2.5 17.3	-6.7 -7.3	-4.9 -6.8	-2.8 -7.8	-3.1 -2.8	-4.4 -6.0
Operating margin (%)	N.A.	5.3	-27.7	9.2	-	-	-	-	8.9	-6.0
Year on year sales growth at constant exchange rates (%) **	-1.2	-5.3	-8.5	-15.1	-8.5	-0.9	3.6	7.7	6.3	4.2
Commercial share of viewing (%)
Estonia (15-49) Latvia (15-49)	38.3 34.3	39.7 36.1	39.4 33.5	42.9 34.7	40.2 34.7	42.8 34.8	42.2 40.3	40.0 38.4	42.2 39.2	41.9 38.1
Lithuania (15-49) Czech Republic (15-54)	39.6 19.4	37.5 21.0	39.7 22.6	44.0 20.4	40.4 20.8	39.5 20.1	37.8 22.3	41.8 25.9	43.6 25.9	40.7 23.4
Bulgaria (18-49) 2	34.0	36.1	33.4	29.2	32.9	29.3	27.9	28.2	27.2	28.2
Hungary (18-49) Slovenia (18-49)	8.5 9.7	7.6 12.6	7.8 13.8	7.6 9.8	7.9 11.2	7.9 9.7	7.1 10.3	7.8 11.1	7.4 9.8	7.5 10.1
PAY-TV EMERGING MARKETS
Year on year sales growth (%)	57.8	47.6	25.8	11.1	33.0	-0.9	2.7	8.4	-0.2	2.4
Year on year change in operating costs (%)	42.6	49.5	19.1	7.5	28.1	-0.9	2.0	24.4	19.2	10.9
Operating margin (%) Year on year sales growth at constant exchange rates (%) **	18.4 39.1	15.6 31.0	15.1 18.3	27.2 13.0	19.2 23.9	18.4 13.2	16.2 12.1	2.6 15.5	13.1 8.9	12.5 12.4
Subscriber data ('000s)
Premium DTH subscribers	214	204	207	216		224	224	225	245
Basic DTH subscribers 3 Mini-pay subscriptions	15 37,740	19 40,182	22 39,620	24 40,778		109 44,335	125 45,467	148 46,629	185 50,245
ASSOCIATED COMPANY CTC MEDIA
Share of viewing
CTC Russia (6-54) Domashny Russia (females 25 - 60)	11.4 2.6	12.5 2.9	12.2 3.2	12.7 2.9	12.2 2.9	12.6 3.0	11.5 3.5	11.6 3.3
DTV Russia (25-54) Channel 31 Kazakhstan (6-54)	2.2 13.1	2.4 11.7	2.3 11.6	2.1 10.4	2.2 11.6	2.1 10.4	2.1 12.2	2.0 11.4

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

APPENDIX 1

Acquisitions during the period

Viastrong

MTG announced on 9 June that it had completed the acquisition of a further 35% of Viastrong Holding AB ("Viastrong") from Strong Media Group Ltd. ("Strong Media") for EUR 11.25 million in cash. MTG now owns 85% of Viastrong which, through Vision TV LCC, operates the Viasat Ukraine DTH satellite pay-TV platform. The acquisition was made following the plans to further capitalise on this market. The acquisition was completed following approval from the regulatory authorities in Ukraine. MTG has fully consolidated the operating results for Viasat Ukraine in the "Pay-TV Emerging Markets" business segment from June 2010. The purchase price for the remaining 15% of the shares is calculated based on the agreement, and as a consequence, 100% of Viastrong is consolidated without non-controlling interest. Viasat Ukraine was previously a joint venture and was as such consolidated according to the proportional method.

The work on the purchase price allocation, which includes the identification and valuation of intangible assets, has recorded fair values at the dates of acquisition as stated below. The goodwill is mainly explained by entering new market segments with the potential of new customer relationships expected to be realised in the future as well as the skills of existing employees. The goodwill will not be tax deductible.

	Recognised
Net assets acquired (SEK million):	values
Tangible assets	2
Intangible assets	12
Trade and other receivables	42
Cash and cash equivalents	4
Deferred tax receivables	19
Deferred tax liability	-3
Interest-bearing liabilities	-57
Trade and other payables	-61
Net identifiable assets and liabilities	-41
Goodwill on acquisition	208
Total consideration	166
Purchase price, unpaid	-58
Liquid funds in acquired companies	-4
Cash consideration	104

The cash consideration including transaction costs of SEK 0.2 million amount to SEK 104 million.

Viastrong contributed by SEK 42 million in sales and SEK -59 million in net losses year to date. If the acquisition had been made as per 1 January, MTG Group sales would have been SEK 13,122 million, while net income would have decreased to SEK 1,667 million.

Raduga

The Group announced on 8 February that it had acquired 50% of Raduga Holdings S.A. from Continental Media S.A.. The consideration was USD 22.50 million in cash. The results have been reported within the "Pay-TV Emerging Markets" business segment with effect from February 2010. Raduga is a joint venture and is recognised according to the proportional method.

The work on the purchase price allocation, which includes the identification and valuation of intangible assets, has recorded fair values at the dates of acquisition as stated below. The goodwill comprise potential new products and customers expected to be realised in the future as well as the skill of existing employees. The goodwill will not be tax deductible.

	Recognised
Net assets acquired (SEK million):	values
Tangible assets	2
Intangible assets	3
Trade and other receivables	9
Cash and cash equivalents	11
Deferred tax receivables	5
Trade and other payables	-37
Net identifiable assets and liabilities	-6
Non-controlling interests	2
Goodwill on acquisition	165
Total consideration	161
Liquid funds in acquired companies	-6
Cash consideration	155

Raduga contributed by SEK 43 million in sales and SEK -8 million in net losses year to date. If the acquisition had been made as per 1 January, MTG Group sales would have been SEK 13,104 million, while net income would have been SEK 1,670 million.