During 2009, the reported share of Russia's largest independent television broadcaster CTC Media was 39.4%. The Group reports its equity participation in the earnings of CTC Media with a one quarter time lag due to the fact that CTC Media reports its results after MTG. CTC Media primarily comprises the three Russian networks CTC, Domashny and DTV, the latter acquired from MTG in 2008, and generated sales of USD 513 (615) million for the rolling twelve months ended 30 September 2009 with an operating result of USD -24 (259) million. MTG’s reported share of earnings in CTC Media’s results therefore amounted to SEK 254 (629) million for the twelve month period.
Detailed information regarding CTC Media’s operations and financial position is available on www.ctcmedia.ru.
Significant events
In December 2009 an international version of the CTC channel was launched for the Russian speaking population of the United States. The channel has initially been made available through DISH Network, the third largest pay-TV provider in the US. The international version of CTC channel comprises the top programmes from the Russian CTC channel, as well as programming from the Domashny and DTV channels.
Significant events after the end of the year
On 26 February 2010, CTC Media reported its financial results for the fourth quarter and full year 2009. The company reported full year 2009 sales of USD 506 (640) million, with an operating income of USD 152 (34) million, and a net income before tax of USD 149 (4) million. CTC Media’s results for the full year included an impairment of intangible assets of USD 19 (233) million, and a non-recurring settlement of a litigation against CTC Media’s former CEO of USD 29 million. CTC Media announced its intention to pay an aggregate of US$ 40 million in cash dividends in 2010. The Board of Directors of CTC Media had approved the payment of the first instalment of the dividend in the amount of US$ 0.065 per outstanding share of common stock, or US$ 10 million in total. MTG’s participation in CTC Media was diluted after the end of the year due to new share issues, and the Group now owns 38.9% of the issued and outstanding shares in CTC Media.