Related Documents
Financial
Annual Report 2010
Modern Times Group (MTG) delivered a decisive financial turnaround in 2010, achieving its strategic aim of double‑digit organic growth while reinforcing a balanced capital structure. Net sales rose 12 % to SEK 13.1 bn, driven by strong advertising and subscription performance, and operating income increased 27 % to SEK 2.36 bn, delivering an 18 % margin. The group generated a free‑cash‑flow surplus of SEK 1 bn, converted 70 % of EBITDA into cash, and reduced net debt to roughly SEK 2 bn—below one times EBITDA. A 10 % dividend uplift to SEK 5.50 per share and a proposed 36 % increase for 2011 reflected the improved cash position, while the CDON spin‑off contributed a SEK 1.7 bn non‑cash gain. Content investments, notably Premier League rights, HD/3D and OTT services, together with expanded ownership in Eastern‑European satellite platforms, positioned MTG for continued growth across mature Scandinavian markets and emerging regions. Governance was strengthened through a newly constituted Nomination Committee representing over half the voting rights, an eight‑member board with four independents, and robust audit and internal‑control functions. Shareholder composition was diversified, with Swedish institutions, international investors and private holders each accounting for roughly 40 % of capital, and a share‑buy‑back mandate covering up to 10 % of issued shares. The 2010 financial statements were prepared under IFRS, incorporating recent standard changes that affected earnings per share and income‑statement presentation, and detailed fair‑value treatment of derivatives, assets and liabilities. Risk management emphasized a credit exposure of SEK 2.2 bn, primarily trade receivables, and comprehensive FX hedging via twelve‑month forwards. Although operating cash generation fell sharply to SEK 60 m from SEK 3.3 bn the prior year, interest and tax outflows were halved, underscoring disciplined cost control. Overall, the 2010 results illustrate MTG’s successful transition from a loss‑making position in 2009 to a profitable, cash‑generating, and strategically positioned media group.
Modern Times GroupJan 2010
Financial
Annual Report & Accounts 2012
The 2012 annual report presents Modern Times Group AB’s financial performance, strategic actions and sustainability initiatives, positioning the company as a financially robust, diversified media operator seeking growth through acquisitions and digital expansion. Net sales reached SEK 13.3 billion, operating profit rose to SEK 2.1 billion and net profit recovered to SEK 1.6 billion, delivering basic earnings per share of SEK 17 after a loss‑making 2011. Free‑cash‑flow increased 6 % to SEK 1.8 billion, enabling a 20 % dividend rise to SEK 600 million and leaving net debt essentially at zero, while capital spending remained modest at 1 % of revenue. Revenue growth was uneven across segments. Nordic pay‑TV sales grew 4 % to SEK 4.4 billion with a 4 % lift in ARPU, yet operating profit fell; free‑TV Scandinavia declined 4 % and margins contracted. In contrast, emerging‑market free‑TV sales were flat on a constant‑currency basis but operating profit surged nearly five‑fold, reflecting the impact of new pay‑TV investments. The year featured several strategic acquisitions—including TV Sport, a majority stake in Zitius Service Delivery, Paprika Latino and Latvia’s Latvijas Neatkarīgā Televīzija—and the divestiture of Bet24
Modern Times GroupJan 2012
Financial
Annual Report 2009
Modern Times Group’s 2009 annual report presents a year of contrasting outcomes, combining modest revenue growth with a substantial net loss driven primarily by non‑recurring impairments. Net sales rose to SEK 14.2 billion, up from SEK 13.2 billion the prior year, while operating income before exceptional items reached SEK 1.65 billion. A goodwill and asset‑impairment charge of roughly SEK 3.35 billion turned operating results negative, producing a consolidated net loss of SEK 2.0 billion and a loss per share of SEK 30.97. Despite the loss, the group generated SEK 1.5 billion of net operating cash flow, reduced net debt to SEK 2.7 billion (1.1 × EBITDA), and retained SEK 3.8 billion in liquid funds, supporting a proposed dividend of SEK 5.50 per share and authorization to repurchase up to 10 % of outstanding shares. The report underscores a strategic shift toward emerging‑markets pay‑TV, where revenue grew 33 % to SEK 875 million and operating profit increased 59 % to SEK 168 million, while subscriber numbers expanded across premium, basic and mini‑pay services. Digital retail sales also rose 26 %, reflecting diversification beyond traditional broadcasting. Governance is highlighted through a board of eight non‑executive directors, active remuneration and audit committees, and a Modern Responsibility framework that integrates employee development, carbon‑footprint auditing, ISO 14001 certification and green‑building standards. Approximately 86 % of staff completed performance surveys and 61 % of permanent employees received training, indicating strong internal engagement. Financial risk management remains a priority, with the group maintaining sufficient credit facilities, modest exposure to transaction‑level hedges, and an unhedged translation risk profile. IFRS updates slated for 2010 are expected to affect disclosures but not the core financial position. Overall, the 2009 performance reflects a resilient cash position and growth in high‑margin emerging markets, offset by significant impairment charges and a need for continued debt discipline.
Modern Times GroupJan 2009
Financial
Annual Report & Accounts 2014
Modern Times Group recorded a solid top‑line expansion in 2014, with net sales rising 11 % to SEK 15.7 billion on a constant‑exchange‑rate basis. Growth was split between 4 % organic increase and a further 7 % generated by acquisitions, notably the 2013 purchase programme that expanded the group’s presence in the Nordic pay‑TV and emerging‑market segments. Operating profit slipped modestly, falling 3–4 % to roughly SEK 1.3 billion and delivering an 8.1 % operating margin, while cash flow remained robust and net debt was cut to 0.2 × EBITDA, half the level of the prior year. The board proposed, and shareholders approved, a cash dividend of SEK 10.50 per share—about 57 % of net income—resulting in a payout of SEK 700 million. At year‑end the market capitalisation stood at SEK 16.8 billion, with 17,721 shareholders; the ten largest owners held 47 % of the equity and 64 % of voting rights, and Swedish institutional investors owned roughly 59 % of the shares. Segment performance was mixed. Free‑TV Scandinavia delivered flat revenue with a slight profit decline, while Pay‑TV Nordic posted an 8 % sales increase and a 14 % rise in operating profit. Broadcasting contributed SEK 13.2 billion of the total revenue and generated SEK 2.12 billion of operating profit, marginally below the previous year. The group continued to hedge virtually all USD and EUR programme‑acquisition exposures, maintaining a SEK 137 million hedging reserve, and held full‑coverage insurance on its assets. Corporate governance was overseen by a seven‑member board, four of whom were classified as independent, supported by remuneration, audit and a newly created corporate‑responsibility advisory committee. The board approved all major investments, acquisitions and disposals above SEK 2 million. Financial statements were prepared under IFRS, with joint ventures now accounted for using the equity
Modern Times GroupJan 2014