MTG hit by restructuring costs
October 22, 2015
MTG’s recent restructuring has cost it SEK700 million (€74.2 million) int has reported in its Q3 results.
The TV group has undertaken a company-wide restructure, announcing 300 job cuts in August as part of a programme of cuts across its operations in the UK Sweden, Norway and Denmark. Over half of the restructuring charges relate to redundancy payments to outgoing staff.
The company has said previously the restructuring will result in annual savings of about SEK600 million, taking full effect from 2017. MTG said this cash will be reinvested. MTG has been investing in digital services, acquiring the likes of Turtle Entertainment and Splay.
“We have then invested SEK1.2 billion in three market leading digital businesses in high growth online video categories, and we have also invested to secure key sports rights and studio deals for years to come,” MTG said. “This will enable us to develop our brands and products to deliver even more premium content across even more screens and platforms.”
The company posted Qw revenues of SEK3.8 billion, a 5 per cent increase year-on-year.