Modern Times Group (MTG) the Swedish broadcasting group, has said it expects improved year-on-year profitability levels for its emerging market free-TV and pay-TV operations in 2012, as it reported a drop in net profit in the first quarter due to higher investments.
“The year-on-year increase in investments in our Scandinavian free-TV and Nordic pay-TV operations was higher in the first quarter than will be the case for the rest of the year, and we expect improved year-on-year profitability levels for our emerging market free-TV and pay-TV operations in 2012,” Chief Executive Hans-Holger Albrecht said.
MTG invested in spring free-TV schedules in Scandinavia to improve ratings, and in pay-TV content to drive continued subscriber intake.
Net sales in the first quarter were SEK3.26 billion, up from SEK3.13 billion last year. Operating margin in the first quarter was SEK542 million, down from SEK686 million. Net profit in the first quarter was SEK454 million, down from SEK490 million.