FinancialModern Times Group
Modern Times Group Annual Report 2013
1 Jan 2013124 pages~272 min full read
MTG scaled its operations to over 4,000 employees across 40 countries, producing 880,000 broadcast hours in 2013, double the output of its primary European competitor.
The company aggressively expanded its geographic footprint in 2013 through new channel launches in the Czech Republic and Tanzania, entry into Turkey, and the acquisition of Bulgaria’s Net Info.
Financial governance is supported by a stable share-premium of SEK 338 million and a fair-value capital reserve of SEK 267 million, with an unqualified audit opinion from KPMG.
Executive compensation is strictly controlled, with variable remuneration capped at 75% of base salary and a long-term incentive plan that granted 373,337 Class B shares to align interests with shareholders.
The board maintains oversight through independent non-executive directors and dedicated committees for audit, remuneration, and corporate responsibility, with an internal audit function reporting directly to the audit committee.
Strategic growth in 2013 included multiple acquisitions across Norway, Latvia, Sweden, and Denmark to diversify revenue streams despite competitive pressures in markets like the Czech Republic.
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.
