MTG reported a net loss of SEK 1.289 billion in 2011, driven primarily by a SEK 2.998 billion write-down of the Nova business in Bulgaria and related goodwill impairments.
See it on page 89Despite the net loss, the company achieved record financial performance with net revenue of SEK 13.5 billion, a 6% increase at constant exchange rates, and an underlying operating profit of SEK 2.5 billion.
See it on page 58Growth was led by the pay-TV segment, which saw a 13% increase and helped push the Nordic premium subscriber base to over one million.
See it on page 13Emerging-market television operations grew by 8% in 2011, with the board signaling a strategic shift toward these markets contributing a larger share of future revenue and profit.
See it on page 26Technological disruption, including on-demand viewing, ad-skipping, and piracy, is forcing the company to commit significant capital toward broadcasting and satellite infrastructure.
See it on page 30The company maintained a positive operating cash flow of SEK 1.8 billion, though total cash and cash equivalents remained low at SEK 96 million by year-end.
See it on page 116Risk management for programme-acquisition costs is handled through transaction-level hedging, while the board maintains a governance structure supported by eight non-executive directors and external audit by KPMG.
See it on page 31The 2011 Modern Times Group (MTG) Annual Report presents a comprehensive assessment of the company’s financial performance, strategic direction, and governance during a year of record revenue but substantial impairment losses. While net revenue reached SEK 13.5 billion—a 6 % increase at constant exchange rates—and underlying operating profit rose 8 % to SEK 2.5 billion, a SEK 2.998 billion write‑down of the Nova business in Bulgaria and related goodwill impairments drove the consolidated group to a net loss of SEK 1.289 billion and an operating loss of SEK 637 million. Total assets declined to SEK 11.3 billion and equity fell to SEK 4.1 billion, leaving cash and cash equivalents at SEK 96 million despite positive operating cash flow of SEK 1.8 billion.
Growth was strongest in emerging‑market television and pay‑TV, which posted 8 % and 13 % increases respectively and lifted the Nordic premium subscriber base above one million. The board expects emerging‑market operations to contribute an expanding share of revenue and profit while preserving robust returns on capital employed and equity, subject to a minimum performance threshold. Nevertheless, the Directors’ Report flags accelerating technological disruption—on‑demand viewing, ad‑skipping, and low‑cost channel launches—as a source of audience fragmentation and heightened piracy risk, necessitating significant investment in broadcasting and satellite infrastructure.
Corporate governance is overseen by a twelve‑member board, including eight non‑executive directors and dedicated remuneration, audit and nomination committees, with external audit provided by KPMG and an independent internal audit function. Risk management relies on transaction‑level hedging of programme‑acquisition costs, leaving translation‑level foreign‑
