Modern Times Group has seen net sales up 6 per cent year on year SEK 13,473 million. Operating income was SEK1,900 million but sank to a net loss of SEK 1,289 million when non-recurring items and associated companies were included.
Hans-Holger Albrecht, President and Chief Executive Officer, commented: “All four of our broadcasting businesses reported growing revenues in the quarter and for the full year, as we reported record sales for both periods despite the broader economic uncertainty that has prevailed during the year. Our net cash flow from operations was up 17 per cent year on year in 2011 and we ended the year with substantially reduced borrowings, which is why the Board is proposing an increased dividend and adopting a dividend policy moving forward. We are a growth company and are investing in our existing operations, as well as seeking opportunities to establish and acquire new businesses.”
“Sales for our Scandinavian free-TV operations were up year on year as the advertising markets continued to grow. We have some ratings issues, which are being addressed, and our 2012 Spring schedules are now being launched. Our Nordic pay-TV subscriber base continues to grow and our Viaplay online service is developing according to plan. The emerging market free-TV operations have taken share and outperformed in advertising markets that are still lagging the recovery in western Europe, whilst our emerging market pay-TV operations are reporting continued strong subscriber intake. Our businesses have some of the highest margins in the European broadcasting industry despite the fact that we are continuing to invest in programming content, new technologies and subscriber acquisition.”
“Our fourth quarter results were impacted by a number of non-recurring and primarily non-cash items following our year-end impairment tests, but our underlying profitability and cash flows remain healthy and we are continuing to explore new growth opportunities.”