MTG tough going

Modern Times Group(MTG) has published its financial results for the third quarter ended 30 September 2011.  Net sales were up 4 per cent year on year at constant exchange rates to SEK 3,106 million and  operating income before associated company income was up 6 per cent year on year to SEK 358 million, with an increased operating margin of 12 per cent.

However net income from continuing operations of SEK 306 million was down frm SEK339 million and total net income of SEK 306 was down from SEK 359 million.

For the nine months ending 30th September sales were up 8 per cent year on year at constant exchange rates and up 3 per cent year on year at reported exchange rates to SEK 9,762 versus SEK9,484 million.

Hans-Holger Albrecht, President and Chief Executive Officer, commented: “All four of our broadcasting business segments grew year on year and contributed to record Group sales for the third quarter, which is the seasonally lowest sales period of the year. The Scandinavian TV advertising markets remained strong and certain of the emerging market territories showed higher growth levels as our media houses took market shares. Overall, the comps in the Scandinavian TV advertising markets are becoming tougher and the recovery in the emerging territory advertising markets is still lagging. The Nordic pay-TV subscriber base was largely stable quarter on quarter with the revenue growth reflecting rising premium satellite ARPU levels, whilst the emerging market pay-TV channel and platform businesses reported another quarter of double digit year on year subscriber and sales growth.

We have continued to invest in our programming schedules, channels, platforms and subscriber acquisition campaigns across our existing and new markets, but still reported a higher group operating margin in the quarter when compared to last year. We will invest further moving forward and use our healthy cash conversion levels and financial position to develop the Group’s existing operations and explore new growth opportunities.”

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