Annual Report 2003 - Modern Times Group MTG AB

1.
Eastern Europe
Eastern Europe – Pay-TV
Viasat successfully launched two of its most popular channel formats
in Eastern Europe during 2003 – the TV1000 movie channel
and the Viasat Explorer documentary and nature channel. Both
channels have already attracted large subscriber bases due to competitive
pricing levels and popular content.
Viasat Explorer had a combined base of 670,000 subscribers in
Estonia, Latvia, Lithuania, Russia, Moldova, Hungary, Bulgaria
and Romania by the end of 2003. TV1000 was launched in Belarus,
Russia, Moldova, Ukraine and the three Baltic states, and has
already passed one million subscribers.
Eastern Europe – Free-TV
TV3 is the most watched commercial television channel in the
Baltic region, with a technical penetration of more than 96% in
Estonia, Latvia and Lithuania. TV3 reached a record high pan-
Baltic commercial share of viewing in December 2003 with 37.8%
of viewers between 15–49 years of age. TV3 achieved another
record-breaking result in December with an impressive 40.1%
share of viewing in the commercially attractive age 15–34 target
group. The Pan-Baltic commercial share of viewing amongst the
target age group 15–49 in 2003 was 35.0% (32.0%) for the full year.
TV3 increased its commercial share of viewing amongst 15–49
year olds in all three markets during 2003.
TV3 Estonia’s share grew from 40.7% to 50.0%, advancing its
position as the largest channel in the country. TV3 Latvia grew by
9% and achieved a full year commercial share of viewing of 26.6%,
compared to 24.5% in 2002. TV3 Lithuania increased its share in a
highly competitive market, from 33.4% to 35.0% in 2003 ending
the year as the number one channel in Lithuania.
The advertising markets in the Baltics continued to grow in
2003 and TV3 revenues in the Baltics increased by 12% year on
year to SEK 254 million. MTG’s efficient organization and the
advantages of being the largest channel in the region have yielded
high incremental margins. Operating profits for Baltic TV
operations increased by 24% to SEK 49 million.
Viasat increased its investments in programme acquisition in
Lithuania, purchasing high profile sports rights and strong local
own productions. The acquired Michael Jackson documentary
and the Macaulay Culkin ‘Home Alone’ movies were the toprated
programmes during the year in all three countries.
broadcasting
1. Viasat showed both sides of the Iraqi war by broadcasting the
American Fox News channel as well as the Arabic news channel
Al-Jazeera with live translation.
Local basketball champions, Zalgiris, once again dominated the
sports scene but the biggest sports event of the year was
Lithuania’s unexpected victory over Scotland in the European
Championships qualification round – 50.2% of 15–49 year olds
watched the game. Furthermore, TV3 raised charity funds for orphans
through another TV event that attracted over 1.6 million viewers.
The charity fund increased by 25% during the final two
hours of the boadcast and set a new record for the most successful
charity collection ever in the country’s history.
A charity episode of ‘Who wants to be a Millionaire’ achieved
Lennox Lewis is one of many
great boxers featured on
TV1000’s boxing coverage.
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