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Modern Times Group Q3 2015 Interim Report

Key insights

6 takeaways

01
Modern Times Group recorded Q3 2015 sales of SEK 3,819 million, but posted a net loss of SEK 384 million due to SEK 700 million in restructuring charges.See it on page 16
02
The company is executing a digital transformation strategy aimed at achieving SEK 600 million in annual savings by shifting focus from traditional broadcasting to digital media.See it on page 2
03
Aggressive expansion into the esports and digital video sectors included the acquisition of Turtle Entertainment and investments in networks such as Splay and Zoomin.See it on page 3
04
The group divested its stake in CTC Media to navigate challenging regulatory environments in Russia while maintaining stable sales in Emerging Markets Pay-TV despite regional instability.See it on page 9
05
Total sales for the first nine months of 2015 reached SEK 11,674 million, bolstered by consistent performance in the Nordic Pay-TV sector.See it on page 5
06
The company’s financial risk profile includes a rise in level 3 financial liabilities to SEK 958 million as it absorbs costs associated with its portfolio diversification.See it on page 25

Summary

Modern Times Group achieved record sales of SEK 3,819 million during the third quarter of 2015, reflecting a strategic pivot toward digital expansion and sustained growth in Nordic subscriber bases. Despite this top-line success, the company recorded a net loss of SEK 384 million, primarily attributed to SEK 700 million in restructuring charges intended to facilitate a long-term digital transformation. These initiatives aim to secure SEK 600 million in annual savings, signaling a transition away from traditional broadcasting toward a more diversified digital media portfolio.

The company’s operational landscape remains defined by aggressive acquisitions, most notably the purchase of Turtle Entertainment, alongside investments in digital video networks like Splay and Zoomin. These moves have increased both sales and operational costs, while the divestment of the stake in CTC Media reflects a necessary response to shifting regulatory environments in Russia. Emerging Markets Pay-TV segments have demonstrated resilience, maintaining stable sales despite geopolitical instability in Ukraine and regulatory pressures that have complicated international operations.

Financial performance for the first nine months of 2015 reached SEK 11,674 million, supported by consistent performance in the Nordic Pay-TV sector. While the group faces volatility in emerging market margins and a rise in level 3 financial liabilities to SEK 958 million, the overarching strategy remains focused on scaling digital assets. By reclassifying discontinued operations and absorbing significant non-recurring charges, the organization is positioning itself to mitigate future risks while prioritizing growth in the rapidly evolving digital video and esports markets.