FinancialModern Times Group
Annual Report & Accounts 2012
1 Jan 2012136 pages~322 min full read
Modern Times Group achieved a financial turnaround in 2012 with SEK 13.3 billion in net sales, SEK 2.1 billion in operating profit, and a net profit of SEK 1.6 billion following a loss-making 2011.
The company strengthened its balance sheet by maintaining net debt at near-zero levels and increasing free cash flow by 6% to SEK 1.8 billion, supporting a 20% dividend increase to SEK 600 million.
Nordic pay-TV revenue grew 4% to SEK 4.4 billion driven by a 4% increase in ARPU, though this was offset by a 4% decline in Scandinavian free-TV sales and contracting margins.
Emerging-market free-TV operations saw operating profit surge nearly five-fold, a performance attributed to strategic investments in new pay-TV services.
Capital expenditure remained disciplined at 1% of total revenue throughout the fiscal year.
Strategic portfolio management included the acquisition of TV Sport, Zitius Service Delivery, Paprika Latino, and Latvijas Neatkarīgā Televīzija, alongside the divestiture of Bet24.
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
