Modern Times Group (MTG) has published its financial results for the first quarter ended 31 March 2013. Highlights include:
– Net sales of SEK 3.223 billion – up 2 per cent at constant exchange rates
– Operating income of SEK 219 million when excluding associated company income
– Total operating income of SEK 454 million when including SEK 235 million of associated company income
The Group continues to expect its Nordic pay-TV business to grow its revenues at constant exchange rates in 2013, and to report an operating (EBIT) margin of approximately 10-12 per cent for the full year 2013. The segment margin is expected to increase in 2014.
The Group also continues to expect its Emerging Market pay-TV operations to achieve a breakeven EBIT result for the full year 2013 with rising profitability levels in 2014.
Jørgen Madsen Lindemann, President and Chief Executive Officer, commented: “The first quarter is a seasonally small sales period but these results do indicate clear positive momentum across the business. The high sales growth in the emerging market free-TV operations reflected both the first impact of the strategic sales agreements in the Czech Republic and Bulgaria, as well as further underlying advertising market share gains in almost all of our territories on the back of higher ratings. We were the largest free-TV media house in the Czech Republic for the first time on a quarterly basis, when measured by advertising market share, and this is a significant milestone for the Group. Our Scandinavian audience shares have now stabilized or improved and we will continue to benefit from penetration gains and the addition of new channels. We will invest in momentum across our territories, in order to capture market share despite the soft overall advertising environment.”
“On the pay-TV side, the Viaplay online service in the Nordics has continued its rapid expansion and achieved record number of daily viewers, as well as consistently high customer ratings. Revenues for the Nordic pay-TV business are up as expected and primarily reflected the consolidation of the TV3 Sport channels in Denmark. The emerging market pay-TV businesses have also continued to expand rapidly by adding satellite subscribers and wholesale subscriptions year on year. We are investing in the future growth of our Nordic and emerging markets businesses as planned and profitability levels are tracking accordingly this year ahead of rising profitability next year.”