Record Sales for MTG

STOCKHOLM: Net sales were up 3 percent in the third quarter at Modern Times Group (MTG), though pre-tax profits slipped 7 percent to SEK439 million ($66.6 million).

Total net income for the third quarter was down 15 percent, from SEK359 million ($54.5 million) to SEK306 million ($46.4 million).

For the nine-month period, net income was up 8 percent to SEK1.28 billion ($182 million). Pre-tax profit was up 13 percent to SEK1.8 billion ($272 million). Net sales were also up 3 percent for that period.

Sales for the Scandinavian free-TV operations were up 7 percent year on year in the quarter and 8 percent for the year to date. The Nordic pay-TV business generated 4 percent year-on-year sales growth at constant exchange rates in the quarter and 8-percent growth for the year to date. Combined segment sales for the group’s emerging markets free-TV operations were up 12 percent year on year at constant exchange rates in the third quarter and up 8 percent for the year to date. For the emerging markets pay-TV business, sales for the combined operations were up 14 percent year on year at constant exchange rates in the quarter and up 15 percent for the year to date.

Hans-Holger Albrecht, the president and CEO of MTG, commented: “All four of our broadcasting business segments grew year on year and contributed to record Group sales for the third quarter, which is the seasonally lowest sales period of the year. The Scandinavian TV advertising markets remained strong and certain of the emerging market territories showed higher growth levels as our media houses took market shares. Overall, the comps in the Scandinavian TV advertising markets are becoming tougher and the recovery in the emerging territory advertising markets is still lagging. The Nordic pay-TV subscriber base was largely stable quarter on quarter with the revenue growth reflecting rising premium satellite ARPU levels, whilst the emerging market pay- TV channel and platform businesses reported another quarter of double digit year on year subscriber and sales growth.

“We have continued to invest in our programming schedules, channels, platforms and subscriber acquisition campaigns across our existing and new markets, but still reported a higher group operating margin in the quarter when compared to last year. We will invest further moving forward and use our healthy cash conversion levels and financial position to develop the group’s existing operations and explore new growth opportunities.”