22 July 2008 – Modern Times Group MTG AB (publ.) (“MTG” or “the Group”) (The OMX Nordic Exchange Large Cap market: MTGA, MTGB) today announced its financial results for the second quarter and six months ended 30 June 2008.


SECOND QUARTER HIGHLIGHTS

• Group net sales up 17% year on year to SEK 3,318 (2,843) million
• Group operating income (excluding non-recurring items) up 26% year on year to SEK 673 (532) million, with an increased operating margin of 20% (19%)
• Total Group operating income of SEK 1,756 (532) million (including a SEK 1,159 million net gain from the sale of Russian DTV Group and a SEK 76 million non-cash asset impairment charge in the Online business area)
• Group net cash flow from operations nearly doubled year on year to SEK 986 (518) million
• Net income SEK 1,598 (362) million
• Basic earnings per share of SEK 23.90 (4.95)


HALF YEAR HIGHLIGHTS

• Group net sales up 16% year on year to SEK 6,360 (5,471) million
• Group operating income (excluding non-recurring items) up 27% year on year to SEK 1,269 (1,001) million, with an increased operating margin of 20% (18%)
• Total Group operating income of SEK 2,351 (1,001) million (including a SEK 1,159 million net gain from the sale of Russian DTV Group and a SEK 76 million non-cash asset impairment charge in the Online business area)
• Group net cash flow from operations more than doubled year on year to SEK 1,029 (458) million
• Net income SEK 1,995 (678) million
• Basic earnings per share of SEK 29.68 (9.50)
• Sale of DTV Group on a cash and debt free basis to CTC Media for USD 395 million in cash


Hans-Holger Albrecht, President and Chief Executive Officer, commented: “The results for the second quarter and first half of 2008 are again at record levels, both in terms of sales and profitability. This quarter marks the fifteenth consecutive quarter of double digit year on year sales growth by MTG.

The Q2 performance reflects a substantial market out-performance by our free-TV channel assets, which have continued to take market share and benefit from structural changes and exposure to high growth emerging territories. Our pay-TV operations are benefiting from rising ARPU levels, the addition of new channels and services, and our expansion on to new distribution platforms. Costs have remained under control and we are generating healthy cash flows.

Our integrated structure as content owner and distributor, our balance between subscription and advertising revenues, and our geographically diversified market presence, position us well to capitalise on the changing landscape in the media industry.

The results clearly demonstrate that we are on track with our five year strategic goals, whilst our net cash position provides the flexibility to invest in new businesses and further enhance shareholder returns moving forward.”


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For further information, please visit www.mtg.se or contact:

Hans-Holger Albrecht, President & CEO
Mathias Hermansson, Chief Financial Officer
Tel: +46 (0) 8 562 000 50

Investor & Analyst Enquiries – Matthew Hooper / Oscar Hyléen
Tel: +44 (0) 7768 440 414 / +46 (0) 707 620 024
Email: investor.relations@mtg.se

Press Enquiries – Bert Willborg
Tel: +44 (0) 791 2280 850
Email: bert.willborg@mtg.se

The information in this Interim Report is that 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 22 July 2008.