Financial

Annual Report 2011

1 January 2011124 pages59,578 words

Summary

The 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‑

Pages

View all

Citation

Generating citation...

Similar 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.

market-analysis advertising investment+1

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

investment mergers-acquisitions market-analysis+1

Modern Times GroupJan 2012

Financial

Annual Report 2015

The 2015 annual review presents Modern Times Group’s (MTG) financial performance, corporate governance, and strategic direction for the fiscal year ending 2015. It underscores a central thesis that, despite active board oversight and a continued emphasis on digital‑transformation initiatives, the Group faced a pronounced contraction in profitability and equity while maintaining a high dividend payout. Financial results reveal a sharp decline in net income from SEK 1.17 billion in 2014 to SEK 251 million in 2015, with operating income falling from SEK 1.14 billion to SEK 756 million and basic earnings per share dropping from SEK 11.75 to SEK 3.22. Total assets modestly increased to SEK 16.5 billion, yet liabilities surged to SEK 11.7 billion, compressing equity to SEK 4.8 billion. The Board proposed an ordinary dividend of SEK 11.50 per share—approximately 86 % of net income—while the share‑buy‑back mandate remained unused. Provisions rose to SEK 737 million and impairment losses climbed to SEK 23 million, driven largely by cost‑of‑goods‑services and administrative expenses; depreciation stayed steady at SEK 108 million. Governance activities included 11 board meetings, oversight by Audit and Risk Committees, and adherence to auditor independence policies with KPMG as external auditor since 1997. Executive remuneration featured three share‑based long‑term incentive plans, though board members did not participate. The board comprised 11 directors with disclosed shareholdings, and senior‑management appointments added new executive vice‑presidents. Operationally, MTG reported activity across five segments—Free‑TV Scandinavia, Pay‑TV Nordic, Free‑TV Emerging Markets, Pay‑TV Emerging Markets, and a combined Nice Entertainment/MTGx/Radio unit—reflecting a geographic scope that spans the Nordic region and selected emerging markets. The report also defines key television consumption categories, such as direct‑to‑home

investment market-analysis sweden

Modern Times GroupJan 2016

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.

investment marketing sweden

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

investment mergers-acquisitions market-analysis+1

Modern Times GroupJan 2014

Financial

Modern Times Group Annual Report 2013

Modern Times Group’s 2013 annual report presents a comprehensive picture of a media company in the midst of a strategic transformation aimed at “eradicating boredom globally.” The narrative emphasizes rapid scaling—over 4,000 employees operating in roughly 40 countries across four continents—and a content output of 880,000 broadcast hours, roughly twice that of its main European competitor. Expansion into emerging markets is a central theme, with new channels launched in the Czech Republic and Tanzania, the acquisition of Bulgaria’s Net Info, entry into Turkey, and further take‑overs in Norway, Latvia, Sweden and Denmark, underscoring a deliberate push to diversify geographic revenue streams. Financially, the report details a disciplined governance framework and solid capital structure. Equity movements show a stable share‑premium of SEK 338 million and a fair‑value capital reserve of SEK 267 million, while the board proposes a cash dividend representing a notable percentage of net income. Variable remuneration is capped at 75 % of base salary, and a long‑term incentive plan granted 373,337 Class B shares, aligning executive interests with shareholder value. Debt positions and market‑risk exposures—interest‑rate, credit and currency—are disclosed with KPMG’s unqualified audit opinion confirming the fairness of the statements. The board composition, dominated by independent non‑executive directors with extensive media, telecom and finance experience, reinforces oversight through dedicated audit, remuneration and corporate‑responsibility committees. This structure, together with an internal audit function reporting directly to the audit committee, supports robust risk‑management and internal controls. Overall, the 2013 data illustrate a company that has successfully broadened its global footprint, strengthened its financial base, and instituted rigorous governance, positioning MTG for continued growth despite anticipated competitive pressures in key markets such as the Czech Republic.

investment mergers-acquisitions sweden+1

Modern Times GroupJan 2013

Annual Report 2011

Summary

Tags

Pages

Citation

Citation

Similar Documents

Annual Report 2010

Annual Report & Accounts 2012

Annual Report 2015

Annual Report 2009

Annual Report & Accounts 2014

Modern Times Group Annual Report 2013