1 free read left. Create a free account for unlimited reading + AI research.

Full Year Report 2018: Q4 2018 Highlights

Key insights

7 takeaways

01
Modern Times Group reported record 2018 financial performance with total net sales of SEK 19,742 million and a 24 percent increase in operating income before items affecting comparability.See it on page 15
02
The board has initiated a corporate split, which includes listing the Nordic Entertainment Group (NENT) on Nasdaq Stockholm and distributing shares to existing shareholders.See it on page 3
03
No dividend payout is planned for the 2018 financial year as the company prioritizes the implementation of new dividend policies for both the parent company and the independent NENT Group.See it on page 30
04
Growth in 2018 was driven by the Nordic Entertainment segment, specifically the Viaplay streaming service, and the first full year of profitability for the MTGx division.See it on page 2
05
The group achieved an 18 percent return on capital employed and maintained a stable net debt-to-EBITDA ratio of 1.3.See it on page 29
06
In Q4 2018, MTG Studios saw a 2 percent organic sales increase, while the MTGx segment experienced an 11 percent organic sales decline despite improving operating income to SEK 31 million.See it on page 9
07
The company reported a net income of SEK 472 million from continuing operations during the fourth quarter of 2018.See it on page 16

Summary

Modern Times Group achieved record financial performance in 2018, reporting total net sales of SEK 19,742 million and a 24 percent increase in operating income before items affecting comparability. This growth was primarily fueled by the consistent expansion of the Nordic Entertainment segment, particularly the Viaplay streaming service, alongside the MTGx division reaching its first full year of profitability. These results underscore a successful period of portfolio restructuring and strategic investment, culminating in an 18 percent return on capital employed and a stable net debt-to-EBITDA ratio of 1.3.

The final quarter of the year presented a nuanced performance landscape. While MTG Studios benefited from a 2 percent organic sales increase driven by high demand for scripted drama, the MTGx segment faced an 11 percent organic sales decline. Despite this revenue dip, MTGx improved its operating income to SEK 31 million through reduced depreciation and amortization charges. Overall, the group maintained a solid financial foundation, reporting a net income of SEK 472 million from continuing operations during the fourth quarter.

As the company concludes this fiscal period, it is actively preparing for a significant corporate transformation. The board has initiated a strategic split involving the listing of the Nordic Entertainment Group on Nasdaq Stockholm and the distribution of its shares to existing shareholders. Reflecting this transition, no dividend payout is planned for the 2018 financial year, as the organization prioritizes the implementation of new dividend policies for both the parent company and the newly independent NENT Group. This restructuring marks a pivotal shift in the company’s long-term operational focus.