Note 8 Financial items

             
Group            
(SEK million)         2008 2007
             
Non-cash gain from CTC Media new share issue         57 5
Total         57 5
             
Interest revenue         68 36
          15 -
Total         83 36
             
Interest expense         -96 -45
Revaluation of Metro shares         -26 -
Net exchange rate differences         -79 -6
Other         - -1
Total         -201 -53
             
Net financial items         -61 -12
             
Parent Company            
Dividends from subsidiaries         - 118
Total         - 118
             
Gain from internal sale of shares in subsidiaries         - 6,000
Total         - 6,000
             
Shareholders' contribution         -99 -
Total         -99 -
             
Interest revenue from external parties         36 1
Interest revenue from subsidiaries         328 415
Exchange rate differences         107 -
Other financial revenues         7 -
Total         479 416
             
Interest expense to external parties         -94 -19
Interest expense to subsidiaries         -80 -26
Revaluation of Metro shares         -26 -
Exchange rate differences         - -34
Other         -2 -37
Total         -202 -115
             
Net financial items         178 6,418
             
Hedging positions are taken to protect the Group against the effects of transaction exposures in the main part of contracted outflow for programme acquisitions in US dollars, euro (before 2008), British pounds, and Swiss francs on a rolling twelve month basis. The equity reserve at year end was SEK 33 (3) million. The total value of the forward cash flow hedges were SEK 122 (-17) million at year-end.
MTG has financed part of the investment in Nova in euros, recognising the euro loan as a hedging instrument.
Other financial expenses in the Group and the Parent Company include amortisation of capitalised borrowing costs for loans and costs for guarantees, in total these costs amounted to SEK 2 million in 2008 and SEK 7 million in 2007.
The gain of SEK 6,000 million in the parent company in 2007 arose from the sale of the shares in MTG Broadcasting S.A. as a part of an internal restructuring.
The non-cash gain from the equity stake of CTC Media is a consequence of the dilution from options exercised in 2008 and 2007. The gain is calculated as the difference between the MTG book value and the option exercise value.
 

Download documents

Download the chapters of your choice from the Annual Report.

Modern Times Group MTG AB Box 2094 SE-103 13 Stockholm Sweden Visiting: Skeppsbron 18 Tel: +46 8 562 000 50

Learn more about