Modern Times Group MTG AB (MTG) is a publicly listed company. Its Class A and Class B shares are listed on Nasdaq OMX Stockholm’s Large Cap list under the symbols MTGA and MTGB. The Company’s registered office is located at Skeppsbron 18, P.O. Box 2094, SE-103 13 Stockholm, Sweden. The Company’s registration number is 556309-9158.
Modern Times Group is an 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, the 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 33 countries. Viasat Broadcasting is also the leading Nordic operator and distributor of on-demand streamed free and paid video content over the internet, and offers movies, live sports events, TV series, and catch-up services. MTG is the major shareholder in Russia’s largest independent television broadcaster - CTC Media (Nasdaq: CTCM).
MTG's results are reported for six business segments. Five of these segments, Free-TV Scandinavia, Pay-TV Nordic, Free-TV Emerging Markets, Pay-TV Emerging Markets and CTC Media, comprise Viasat Broadcasting.
The sixth business segment, Other Businesses, primarily comprises the Group's Radio, Bet24 and Modern Studios businesses. MTG is the largest commercial radio operator in the Nordic region and the Baltic countries and the Group’s radio stations reach over three million listeners on a daily basis. MTG Radio owns the largest commercial radio broadcasting networks in Sweden and Norway, owns radio stations and networks in the Baltic countries and has an equity stake in the largest commercial radio broadcasting network in Finland. Modern Studios comprises the Group's content production businesses including the TV production company Strix. Bet24.com comprises the Group's betting business.
The Group's internet retailing business – CDON Group AB – was demerged on 15 December 2010. Its shares were distributed to MTG's shareholders and listed on Nasdaq OMX Stockholm’s Mid Cap list.
MTG delivered another year of record sales and profits in 2010. The Group’s sales were up 12% year on year at constant exchange rates, following advertising market growth, continued advertising market share gains and net pay-TV subscriber intake. Operating profits were up 27% with an increased operating margin of 15% when excluding associated company income and the impact of non-recurring items in 2009. The performance demonstrates the significant operating leverage in the business, and our Free-TV Scandinavia and Pay-TV Nordic businesses reported increased full year margins of 25% and 18%, respectively.
We continue to benefit from our balanced mix of advertising and subscription revenues as well as the synergies which arise from being an integrated free-TV and pay-TV operator with the largest broadcast footprint in Europe. The Scandinavian advertising markets have performed well throughout the year, with rising volumes and pricing levels. Our sales in the Emerging Markets also increased year on year at constant exchange rates, but the recovery in these markets is still lagging.
We now have more than one million premium pay-TV subscribers in the Nordic region and 50 million subscriptions to our wholesale mini-pay channels in Central and Eastern Europe and the US. We added new channels and platforms to our portfolio during the year, and our free-TV and pay-TV channels are now more widely available, and on more platforms, than ever before. We have selectively invested in programming and in our HD, 3D and on-demand services.
In December, we listed our internet retailing subsidiary CDON Group on Nasdaq OMX Stockholm and distributed its shares to our shareholders as a dividend, which totalled more than SEK 2 billion. The distribution was a step in our constant focus on our core broadcasting operations, and we continue to review both organic and acquisition driven growth opportunities going forward in order to develop the Group’s market presence and competitive position.