MTG Posts Strong Q3

STOCKHOLM: Net sales were up 9 percent year-on-year to SEK 3,204 million ($502.9 million) for Modern Times Group, recorded in its third-quarter report.

Operating income was SEK 162 million ($25.4 million), excluding associated company income of SEK 127 million ($19.9 million). Net income was SEK 196 million ($30.8 million). Free-TV Scandinavia sales are growing again at a constant rate with rising investments. Pay-TV Nordic sales were up 7 percent year-on-year with an operating margin at 11.9 percent. Free-TV emerging markets sales were up 21 percent.

Jørgen Madsen Lindemann
, the president and CEO of MTG, said: "The third quarter is the seasonally smallest advertising sales period but our sales growth has now improved for the fourth consecutive quarter. All five of our business segments reported local currency sales growth on a quarterly basis for the first time since Q1 2011."

He added, "Our Scandinavian free-TV operations are growing on a combined basis again and the Fall schedules have established further positive traction. Our free-TV media houses have continued to take advertising market share in almost all of our emerging market territories, but will now begin to face significantly tougher comps in markets that remain soft. Viaplay is rapidly growing its subscriber base in the Nordic region and our satellite business is generating higher ARPU levels, while our emerging market mini-pay HD channels are now even more broadly available. The pay-TV markets are becoming more and more competitive, but we have strong consumer offerings and have early mover advantage in the online space. Our MTG Studios content production and distribution business is also expanding quickly, and MTGx is providing the digital acceleration platform for the group."