Stockholm, 23 October 2007 – 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 third quarter and nine months ended 30 September 2007.


THIRD QUARTER HIGHLIGHTS

• Group net sales up 15% year on year to SEK 2,612 million

• Group operating income up 13% year on year to SEK 279 million, excluding SEK 137 million of associated company income

• Viasat Broadcasting net sales up 16% year on year to SEK 2,022 million and operating income of SEK 400 million

• Net income of SEK 292 million (SEK 529 million including SEK 241 million non-cash gain arising from CTC Media IPO)

• Basic earnings per share of SEK 4.39 (7.82)


YEAR TO DATE HIGHLIGHTS

• Group net sales up 12% year on year to SEK 8,083 million

• Group operating income up 9% year on year to SEK 1,006 million, excluding SEK 410 million of associated company income

• Viasat Broadcasting net sales up 12% year on year to SEK 6,272 million and operating income of SEK 1,417 million

• Net income of SEK 970 million (SEK 1,183 million including SEK 241 million non-cash gain arising from CTC Media IPO)

• Basic earnings per share of SEK 13.88 (16.98)


Hans-Holger Albrecht, President and Chief Executive Officer, commented: “The Group’s sales growth in the quarter and for the year to date demonstrated that we are comfortably on track with our five year strategic goals. Margins reflected the investments that we are making in both our existing and new businesses, a number of which impacted the reporting period for the first time. We gained audience and market share in the majority of our markets, and also added more net subscribers to the Viasat platform than in recent quarters. The launch of new channels; the repackaging of our Nordic pay-TV offering; increasing penetration in Russia; the establishment of the joint venture in Ukraine; and the new agreement signed with Canal Digital in Norway, are all strategic developments intended to enable us to continue to grow sales at double digit percentage rates and further improve profitability levels moving forward.”

“We commenced the share buy-back programme at the end of the quarter, which confirms our ongoing commitment to optimizing the Group’s capital structure, whilst maintaining the flexibility to continue to expand our operations. Cash flow generation is healthy and our return on capital employed has remained at over 30%. The Group is therefore well-positioned to take advantage of investment opportunities and structural market changes as they arise.”


For further information, please visit www.mtg.se, email investor.relations@mtg.se, or contact:
Hans-Holger Albrecht, President & CEO tel: +46 (0) 8 562 000 50
Mathias Hermansson, Chief Financial Officer tel: +46 (0) 8 562 000 50
Matthew Hooper, Investor & Analyst Enquiries tel: +44 (0) 7768 440 414
Bert Willborg, Press Enquiries tel: +44 (0) 791 2280 850

The information in this Interim Report is that which Modern Times Group MTG AB is required to disclose under the Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. It was released for publication at 13.00 CET on October 23, 2007.