MTG Posts Positive Q2, Half-Year Results

STOCKHOLM: Modern Times Group (MTG) has had another quarter of "record sales and operating profits," reporting a pre-tax profit of SEK1.352 billion ($209 million) for its half-year results, a 22-percent gain.

Total net income for the half-year financials was up 18 percent to SEK969 million ($150 million).

For the second quarter, pre-tax profit was SEK681 million ($105 million). Total net income reached SEK479 million ($74 million).

For both the second quarter and the six months ended June 30, net sales were up 9 percent year on year.

Hans-Holger Albrecht, the president and CEO of MTG, attributes the positive results to the continuing recovery in the Nordic TV markets, though he notes that "recovery in the emerging advertising markets is still lagging. We have increased our target audience shares quarter on quarter in the majority of our operating territories, which demonstrated the effectiveness of the multi-channel media house model. The Nordic pay-TV platform has added subscribers year on year as our virtual operator model continues to work well and premium satellite ARPU levels rise further, while our pioneering new Viaplay Nordic internet-based video streaming service is gaining momentum. Our emerging market satellite platforms and channel businesses are also developing rapidly.”

He continued: “We have delivered higher operating profits excluding associates and stable margins, despite the investments that we have been making in new channels, technologies and platforms. We have also strengthened our content offering further with the acquisition or extension of exclusive agreements for key sports rights and with the Hollywood majors, while at the same time focusing on locally produced programming.”

“Our earnings have been converted into healthy cash flows, which have been used to pay down debt and increase our dividend pay-out. We have a low leverage level and therefore remain in a flexible financial position to invest further in the Group’s existing operations and seek new growth opportunities.”