"Once again the TV4 Group reports very strong earnings. Our record profit is testimony to the hard work that has been done throughout the Group. In the face of ever more intense competition, we have shown fighting spirit and ingenuity. 2010 saw many new deals, new investments, new focus, new hit shows, new services offered on new platforms - and continuing successes in national and local advertising sales," says Group CEO Jan Scherman.

TV4 Group sales and earnings both rose in 2010. Group sales rose 9 per cent to SEK 6,019 million (SEK 5,543 million in 2009), and earnings increased by 26 per cent to SEK 807 million (SEK 642 million), representing an operating margin of 13 per cent (12 per cent). The sale of a 35 per cent stake in C More Entertainment AB had a positive one-off effect of SEK 157 million, not included in the above figures.

Growth in the Swedish TV advertising market in 2010 broke all previous records. According to IRM (the Institute for Advertising and Media Statistics), growth to November was 18.4 per cent (figures for December have not yet been released). Total spending on traditional media (daily press, popular press, trade press, TV, radio, outdoor and cinema) advertising rose by 12.6 per cent during the same period. The TV4 Group's cumulative increase was 17.6 per cent.

TV4 remains the most-watched TV channel in Sweden in the main 12 - 59-year-old target group, with a total audience share of 18.7 per cent (19.5 per cent). Taken together, all TV4 Group channels captured an audience share of 29.9 per cent in 2010 (30.5 per cent) in the same target group. In addition, the year ended with a sharp upswing in viewing time in the fourth quarter, both for TV4 as a single channel and for the TV4 Group as a media house, a trend that continues in the first months of 2011.

However, for the first time, the "Other channels" segment saw a fall in its audience share. TV4 Group channels in this segment retained their audience share of just over 11 per cent, which meant that TV4 Group niche channels effectively strengthened their position. This trend, too, continues in 2011, not least thanks to the very strong viewing figures being reported by the newly launched TV11.

During the year, by way of a share purchase and directed placement of new shares in C More Entertainment, Telenor A/S acquired a 35 per cent stake, with a total value of SEK 1,352 million, in C More Entertainment/Canal+ from TV4 AB. This has created a strong alliance in the Nordic premium pay-TV market. C More Entertainment/Canal+ did not renew the rights to Premier League football as from autumn 2010, since the price was considered to be too high. This change, combined with the broadening of the range of sports on offer resulting from the acquisition of a number of major sporting rights, and the full-year effect of the launch of Canal9 in Denmark, meant that premium TV earnings were down on the previous year. Thanks to the new rights portfolio, C More expects subscriber numbers to grow in the future.

In 2010, as part of its commitment to the Nordic market, the TV4 Group acquired the rights to the European Football Championships for the Norwegian and Danish markets, and signed a multi-year pan-Scandinavian output deal with Warner Bros. International Television Distribution. The agreement gives the TV4 Group the exclusive Scandinavian free-TV and basic cable rights to an extensive range of TV series and movies in Sweden, Norway and Denmark. Today it was also announced that the TV4 Group has acquired the exclusive Swedish, Norwegian and Danish rights to the World Ice-Hockey Championships for 2012 - 2017.

TV4 Sverige, responsible for the TV4 Group's local and regional TV operations, continued to see strong growth in sales as well as earnings. Sales were 25 per cent up on the previous year, representing an increased share of the local advertising market. During the year it was also decided that TV4 Plus would begin local sales and offer local content in 2011. A further move was the acquisition of Segelman Retail Television AB (in-store TV) from Expressen AB. This purchase enhances the range of services available to local advertisers.

TV4 Digital Media also reported higher earnings in 2010 than in 2009. During the year a new version of VOD service TV4 Play was launched, and traffic was up 25 per cent on the previous year. Traffic also increased throughout the entire TV4 Digital Media network in 2010.

"The TV world is undergoing rapid and far-reaching changes. We have seen very strong earnings in 2010, entrenching our position as market leader. This gives the strength and freedom to take the TV4 Group into the next phase, which will involve continued rationalisation and greater flexibility, both needed to meet the intensifying competition for viewers and advertisers alike. Our continued success depends on our ability to give the public the best content, strengthen our strategic alliances and offer our advertisers the best range of advertising services," says Mr Scherman.

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The TV4 Group has delivered engaging news, major entertainment shows of great variety and quality, live sport and top-class drama to Swedish viewers for two decades. In addition to the main channel TV4, the Group's portfolio includes 40 TV channels in the Nordic region - in the free-TV, basic cable and premium segments - and 25 local stations in Sweden, as well as a wide range of web and mobile sites and on-demand services, including TV4 Play, where programmes from the Group's various channels are available online. For more information, visit tv4group.se.

Contact information:
Chief Financial Officer (CFO): Lars Johansson, +46 8 459 4061
Chief Communications Officer (CCO): Gunnar Gidefeldt, +46 8 459 4546