3. 3
Fourth Quarter 2011
Record Sales & Increased Net Cash Flow
• Sales up 3% y/y at constant & reported FX to
SEK 3,711 (3,618) mn
• OPEX up y/y to SEK 3,160 (2,965) mn & up
7% at constant FX
• EBIT before associated company income &
non-recurring items of SEK 551 (653) mn
• Total EBIT of SEK -2,517 (746) mn incl.
associated company income of SEK 114 (93) mn
& SEK -3,182 mn of non-recurring items, primarily
related to impairment of Bulgarian broadcasting
goodwill
• PTP of SEK -2,519 (741) mn
• Net income from continuing operations of
SEK -2,564 (634) mn & basic EPS from
continuing operations of SEK -38.87 (9.40)
• Net cash flow from operations up 10% y/y to
SEK 1,107 (1,009) mn
• Included SEK 174 (131) mn of
dividends from CTC Media
Q42011FinancialResults
SEK mn
* EBIT excluding associated income & non-recurring
items
3.618
3.711
653
551
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
Q4 2010 Q4 2011
Revenue EBIT* EBIT margin
4. 4
Full Year 2011
Lower Gearing & Higher Dividend
• Sales up 6% y/y at constant FX & up 3% at
reported FX to SEK 13,473 (13,101) mn
• OPEX up y/y to SEK 11,540 (11,160) mn & up 7%
at constant FX
• EBIT of SEK 1,933 (1,941) mn when excluding
associated company income & non-recurring
items
• Total EBIT of SEK -637 (2,355) mn incl.
associated company income of SEK 611 (413) mn
& SEK -3,182 mn of non-recurring items
• PTP of SEK -727 (2,321) mn
• Net income from continuing operations of
SEK -1,289 (1,750) mn & basic EPS from
continuing operations of SEK -19.98 (26.22)
• Net cash flow from operations up 17% y/y to
SEK 1,797 (1,533) mn
• Including SEK 319 (216) mn of dividends
from CTC Media
• Board of Directors to propose increased annual
cash dividend of SEK 9.00 (7.50) per share &
adopts dividend policy to distribute at least 30% of
recurring net profit to shareholders as annual
ordinary dividend
FY2011FinancialResults
SEK mn
* EBIT excluding associated income & non-recurring
items
13.101
13.473
1.941 1.933
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
FY 2010 FY 2011
Revenue EBIT* EBIT margin
6. 6
Free-TV Scandinavia
Financial Highlights
• Sales of SEK 1,240 (1,229) mn in Q4 & SEK
4,393 (4,247) mn for FY
• Sales up 1% y/y in Q4 & 6% for full year
at constant FX
• OPEX of SEK 958 (879) mn in Q4 & SEK 3,316
(3,165) mn for full year
• Up y/y at constant FX for both periods
• Increased investments in programming
in all 3 countries
• EBIT down to SEK 282 (350) mn in Q4 & stable
at SEK 1,077 (1,082) mn for FY
• EBIT margin of 22.7% (28.5%) in Q4 &
24.5% (25.5%) for FY
Operatingreview
SEK mn
1.229 1.240
4.247
4.393
350 282
1.082 1.077
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
Q4 2010 Q4 2011 FY 2010 FY 2011
Revenue EBIT EBIT margin
7. 7
Free-TV Scandinavia
Operating Highlights
Sweden
• Target audience share of 34.0% (35.2%) in Q4
• Spring programming schedules launched
earlier y/y in 2012
• Focus on new series of popular local
productions & proven international
programmes
Norway
• Target audience share of 20.1% (23.1%)
• Investing in programming content
• Spring 2012 schedules feature well-
established formats launched from
January onwards
Denmark
• Target audience share of 22.2% (24.7%)
• Earlier y/y launch of Spring schedules
• Focus on new seasons of successful
formats
Operatingreview
Commercial Audience Share (15-49)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Sweden Norway Denmark
8. 8
Pay-TV Nordic
Financial Highlights
• Sales of SEK 1,221 (1,137) mn in Q4 &
SEK 4,730 (4,484) mn for FY
• Up 7% y/y in Q4 & 8% for FY at
constant FX
• OPEX of SEK 976 (929) mn in Q4 & SEK 3,807
(3,662) mn for FY
• Up y/y at constant FX
• Ongoing investments in Viaplay streaming
platform & premium content investments
• EBIT up 18% y/y to SEK 246 (208) mn in Q4 &
SEK 923 (822) mn for FY
• Increased operating margins of 20% (18%)
for both periods
Operatingreview
SEK mn
1.137
1.221
4.484
4.730
208 246
822 923
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
Q4 2010 Q4 2011 FY 2010 FY 2011
Revenue EBIT EBIT margin
9. 9
Pay-TV Nordic
Operating Highlights
• Premium subscriber base up by 16,000
subscribers net in Q4 & stable y/y
• Driven by third party subscriber growth
in all three Scandinavian countries
• Satellite subscribers stable q/q
• Premium ARPU up by 5% y/y to SEK 4,791
(4,555) & stable compared to SEK 4,751 in Q4
• Price increases previously introduced
• Ongoing rise in penetration of value-added
services
Operatingreview
ThousandsThousands
Premium subscribers
Value added services
0
200
400
600
800
1.000
1.200
Satellite subscribers 3'rd party network subscribers
0
50
100
150
200
250
300
350
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
ViasatPlus HDTV Multi-room
10. 10
Free-TV Emerging Markets
Financial Highlights
• Total sales of SEK 655 (631) mn in Q4 &
SEK 2,073 (2,004) mn
• Up 7% y/y at constant FX in Q4 & 8%
for FY at constant FX
• OPEX up 7% y/y in Q4 & 8% for FY at
constant FX
• Total EBIT up 19% in Q4 to SEK 67 (56) mn &
improved EBIT of SEK 32 (-43) mn for FY
• EBIT margin of 10% (9%) in Q4 & 2% (-)
for FY
• Baltic, Czech & Bulgarian sales of SEK 591
(556) mn in Q4 & SEK 1,845 (1,754) mn for FY
• Up 9% at constant FX for both periods
• Combined OPEX of SEK 512 (481) mn in Q4 &
SEK 1,721 (1,702) mn for FY
• Up y/y at constant FX for both periods
• EBIT margin of 13% (13%) in Q4 & 7% (3%)
for FY
Free-TV Emerging Markets
Baltics, Czech Republic & Bulgaria
SEK mn
SEK mn
631 655
2.004 2.073
56 67 -43 32
-500
0
500
1.000
1.500
2.000
2.500
Q4 2010 Q4 2011 FY 2010 FY 2011
Revenue EBIT
556 591
1.754
1.845
75 79 52 124
0
500
1.000
1.500
2.000
Q4 2010 Q4 2011 FY 2010 FY 2011
Revenue EBIT
11. 11
Free-TV Emerging Markets
Operating Highlights
Baltics
• Sales up 1% y/y in Q4 & up 8% for FY at
constant FX
• Increased pan-Baltic target audience share
of 43.4% (42.0%) following programming
investments
• New channel TV8 in Lithuania reached 1% CSOV
in 15-49 demographic by year end
Czech Republic
• Sales up 22% y/y in Q4 & 20% for FY at constant
FX following viewing and ad market share gains
• Continued significant CSOV gains both y/y and
q/q, from 25.9% in Q4 2010 to 30.0% in Q4 2011
Bulgaria
• Sales down 11% y/y in Q4 & down 12% for FY at
constant FX, following decline in overall TV ad
market & low prevailing ad prices
• Combined CSOV reflected ongoing programming
investments
Operatingreview
10%
20%
30%
40%
50%
Estonia (15-49) Latvia (15-49)
Lithuania (15-49) Czech Republic (15-54)
Bulgaria (18-49)
Commercial Audience Share
12. 12
Pay-TV Emerging Markets
Financial Highlights
• Sales* of SEK 237 (225) mn in Q4 & SEK 922
(896) mn for FY
• Up 6% y/y in Q4 & 13% for FY at constant
FX
• Continued subscriber intake on Ukrainian
Russian & Baltic platforms + minipay
• Y/Y effect on YTD sales of consolidation
of 50% of Raduga TV from February 2010
& full consolidation of Viasat Ukraine from
June 2010
• OPEX of SEK 231 (196) mn in Q4 & SEK 874
(784) mn for FY & also up y/y at constant FX
• Launch of 10 new mini-pay Viasat channels
since beginning of 2010
• Ongoing investments in Ukrainian &
Russian platforms
• Consolidation of 50% of Raduga TV &
100% of Viasat Ukraine
• EBIT* of SEK 7 (29) mn in Q4 & SEK 49 (112)
for FY
• EBIT margins of 3% (13%) in Q4 & 5%
(12%) for FY
Operatingreview
SEK mn
225 237
896
922
29
7
112
49
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
200
400
600
800
1.000
1.200
Q4 2010 Q4 2011 FY 2010 FY 2011
Revenue EBIT EBIT margin
* Including the effect from the Q4 alignment of the accounting treatment of the Group’s Ukrainian satellite pay-TV business’ results. This alignment
generated a revenue impact of SEK -29 mn and an EBIT impact of SEK -18 mn
13. 13
Pay-TV Emerging Markets
Operating Highlights
• 102,000 net new subscribers added y/y &
72,000 subscribers added in Q4
• Accelerating subscriber intake in
Ukraine and Russia
• Growing Baltic subscriber base
• Wholesale mini-pay business subscriptions
up 28% y/y & 5% q/q to 64.3 million in Q4 from
50.2 million in Q4 2010
• Reflected signing of new contracts
in Russia in particular
Operatingreview
Satellite subscribers
Mini-pay TV subscriptions
ThousandsThousands
0
100
200
300
400
500
600
30.000
40.000
50.000
60.000
70.000
80.000
14. 14
Other Businesses
Highlights
• Comprises MTG’s Radio, Bet24 and Modern
Studios operations
• Sales of SEK 450 (455) mn in Q4 & SEK 1,675
(1,804) mn for FY
• Down 1% y/y & down 5% for FY at
constant FX
• Combined OPEX of SEK 418 (404) mn in Q4 &
SEK 1,566 (1,636) mn for FY
• EBIT before associated company income of SEK
31 (52) mn in Q4 & 109 (168) mn for FY
• EBIT margins of 7% (12%) in Q4 & 7%
(10%) for FY
• Total EBIT of SEK 32 (53) mn in Q4 & SEK
114 (175) mn for FY when including SEK 1
(1) mn & SEK 5 (6) mn of associated
company income for the two periods
Operatingreview
SEK mn
455 450
1.804
1.675
52 31
168
109
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
Q4 2010 Q4 2011 FY 2010 FY 2011
Revenue EBIT EBIT margin
16. 16
Income Statement
• Depreciation & amortisation charges
of SEK 38 (57) mn in Q4 & SEK 183
(218) mn for FY
• Y/Y reduction in net interest charges
to SEK -12 (-22) mn in Q4 &
SEK -59 (-115) mn for FY
• Y/Y change in other financial items
in included
• SEK 43 (2) mn of non-cash
financial gain in Q4 & SEK 14
(2) mn for FY from the change
in value of the option element
of the SEK 250 mn CDON
Group convertible bond
• Non-cash financial gain of
following new share issues by
CTC Media and the resulting
dilution of MTG’s ownership in
the company of SEK 2 (17)
mn in Q4 & SEK 22 (69) mn
for FY
FinancialReview
(SEK mn)
Q4
2011
Q4
2010
FY
2011
FY
2010
Net sales 3,711 3,618 13,473 13,101
EBIT before associated company
income & non-recurring items
551 653 1,933 1,941
Associated company income 114 93 611 413
Recurring EBIT 665 746 2,544 2,355
Non-recurring items -3,182 - -3,182 -
Net interest & other financial items -2 -5 -90 -34
Income before tax -2,519 741 -727 2,321
Net income from continuing
operations
-2,564 634 -1,289 1,750
Net income from discontinued
operations
- 1,724 - 1,790
Net income -2,564 2,359 -1,289 3,541
Basic EPS from continuing
operations
-38.87 9.40 -19.98 26.22
Total basic EPS -38.87 35.43 -19.98 53.34
17. 17
Cash Flow
• Cash flow from operations included
receipt of SEK 174 (131) mn of dividend
payments from CTC Media in Q4 &
SEK 319 (216) mn for FY
• No investments in businesses during
2011, compared to SEK 275 mn during
2010, which primarily comprised the
acquisition of shares in Raduga TV &
Viasat Ukraine
• CAPEX of SEK 34 (38) mn in Q4 &
SEK 120 (157) mn for FY = less than 1%
of Group net sales for both periods
FinancialReview
(SEK mn)
Q4
2011
Q4
2010
FY
2011
FY
2010
Cash flow from
operations
519 578 1,853 1,810
Changes in working
capital
588 431 -56 -277
Net cash flow from
operations
1,107 1,009 1,797 1,533
Cash flow used in
investing activities
-29 -300 -115 -683
Cash flow used in
financing activities
-966 -660 -1,737 -897
Cash flow from
discontinued operations
– CDON Group
- -46 - -88
Net change in cash &
cash equivalents
112 2 -55 -135
18. 18
Financial Position
• SEK 1,542 (2,700) mn of the Group’s available
credit was drawn down as at 31 Dec 2011
• Net debt of SEK down to SEK 797 (2,026) mn
as at 31 Dec 2011 & compared to net debt of
SEK 1,861 mn as at 30 Sep 2011
• SEK 5,528 (4,400) mn of available liquid funds
(cash & undrawn facilities)
• SEK 1,878 (1,785) mn book value of 38.1%
shareholding in CTC Media had public equity
value of SEK 3,618 mn as at 31 Dec 2011
FinancialReview
(SEK mn)
31 Dec
2011
31 Dec
2010
Non-current assets 5,612 8,648
Current assets 5,668 5,354
Total assets 11,281 14,002
Shareholders’ equity 4,350 6,239
Long-term liabilities 2,168 3,311
Current liabilities 4,763 4,452
Total equity & liabilities 11,281 14,002
Net debt / EBITDA
1,2 1,2 1,1
0,8 0,7 0,6 0,7
0,3
19. 19
Summary
• Record sales following growth across all four broadcasting businesses
• Best in class margins and 14% full year underlying margin despite investments
• Adding subscribers in Nordic & Emerging Markets
• Well positioned in the emerging advertising markets BUT market recovery is still
lagging Western markets
• High cash conversion levels & low gearing = increased proposed full year dividend
+ adopted dividend policy
• Solid financial position & continue to invest in businesses that will drive long-term
growth & development
Summary
20. 20
For further information, please visit www.mtg.se or contact:
MTG Investor Relations
Tel: +44 7768 440 414 / +44 7590 098 188
Email: investor.relations@mtg.se
Contactinformation
