Related Documents
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.
Modern Times GroupJan 2013
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 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 2011
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‑
Modern Times GroupJan 2011