Letter from the CEO
2018 has been a milestone year in the history of MTG as we announced the spin-off of our Nordic Entertainment and Studios businesses into what now forms Nordic Entertainment Group. This allowed MTG to focus on developing esports and online gaming products and services and to continue our work towards benefitting gaming communities.
On the day this report is published we are structurally different from what we were a year ago. But one thing remains unchanged – it is our dedication to providing high quality content experiences, telling relevant stories and having an ongoing dialogue with a broad range of stakeholders that form the esports and gaming ecosystem.
In 2018, MTG delivered record sales and increased profits. This success is an important foundation for MTG and NENT Group as both companies start an exciting journey of their own. Both Groups have completed their respective corporate responsibility materiality analyses – that reflect their unique positioning – and will communicate their updated targets and objectives in due course. For MTG, the key focus is to maintain consistent values and business culture across the Group, despite the geographical dispersion of our portfolio companies and differences in local legislation that directly or indirectly influence the way we work and do business.
A value-driven company with the brand identity and business strategy rooted in corporate responsibility, MTG has a clear vision of our sustainability work. This work is divided into four focus areas – social impact, media responsibility, business ethics and environmental care.
Diversity and equality have been and will be MTG’s and NENT Group’s priority as both companies recognise the instrumental role that inclusivity and empowerment play in companies’ success and development. We also stay committed to bringing positive difference to people’s lives, from our employees to our multi-million audiences.
As a leading international digital entertainment group, we recognise that our content is what we are known for and what we are measured by. I am proud of the achievements we’ve made in this area in 2018, from ensuring a safe environment for viewers and players of all ages, to creating content and characters that have become an inspiration and role models for our audiences on air and online, on smartphones and big screens. We live and work in a fast-moving digital world, and the importance of child and minors protection remains high on our list of priorities.
At MTG, we promote a culture of responsibility and accountability, and so in 2018 we have updated our Policies and Guidelines framework to reflect the modern media company that we are. We have rolled out four e-learning courses covering our Code of Conduct, Anti-Bribery and Corruption, Data & Asset Protection and Competition, and are proud to report an overall 89% completion rate by year end.
In May 2018, General Data Protection Regulation (GDPR) came into force across the European Union, and MTG was well prepared for this important initiative that’s designed to safeguard the rights of our audiences. We saw this as an opportunity to review our practices in handling personal information and keeping our customers and users updated on how we store and process their data. During 2018, we have continued to follow our GDPR roadmap and in 2019, we will keep incorporating data protection principles into our daily work.
MTG’s long-term vision is to be a bellwether in esports and gaming entertainment. This means recognising what our audiences and stakeholders care about the most and making sure that our products, as much as our internal and external business practices, live up to our values.
I would like to extend my gratitude to all of the MTG and NENT Group teams and partners, who have contributed to making MTG a better place to be and a responsible company proud of its brands and products.
Jørgen Madsen Lindemann
President & CEO, MTG
Letter from CR Team
Welcome to our 2018 Corporate Responsibility Report.
2018 presented us with a history-defining challenge and opportunity – to streamline our activities based on a business area and pave the path for two distinct corporate responsibility strategies for 2019 and beyond. As MTG’s Nordic Entertainment and Studios businesses formed the new company, Nordic Entertainment Group, Modern Times Group set its sight to esports and gaming and now operates what we call Digital Ventures and International Entertainment.
We’ve worked together to give you a comprehensive picture of what MTG, as a group of companies, achieved in 2018, and what you see in front of you concludes our work as a single team. This is an exciting time as we focus on media and entertainment segments that we feel truly passionate about. One thing won’t change – we all believe that responsible entertainment is better entertainment!
The most significant project of 2018 was conducting separate corporate responsibility materiality analyses for MTG and NENT Group, and each of the companies will communicate their sustainability strategy soon. We saw it as an opportunity to reflect on the future of broadcasting, streaming, content production, gaming and esports and define important topics that each of the Groups will explore in-depth going forward.
This report also indicates that gender diversity, equality and inclusion, as well as GDPR, will play an important role in the future corporate responsibility initiatives at MTG and NENT Group. As we are embracing the future, we invite you to turn the page with us and enjoy the report.
Stay tuned for the new exciting stories to come!
Head of Corporate Responsibility MTG
Lena de Geer
Head of Corporate Responsibility NENT Group
Corporate Responsibility Manager NENT Group
CR Strategy and Materiality
MTG’s vision is to shape the future of responsible entertainment. This vision is reflected in our Corporate Responsibility (CR) strategy, which consists of four focus areas – media responsibility, social impact, business ethics and environmental care.
At MTG, CR is closely integrated with our business strategy, values and culture. To ensure we focus on the most relevant and impactful topics, we regularly review our CR priorities with our stakeholders. These findings form the foundation of our CR strategy and are used to define the key focus areas as illustrated by the materiality matrix. This 2018 report is based on the current materiality analysis and its focus areas are illustrated below. However, as MTG is preparing for the split into two separate companies, two new separate materiality analyses were conducted during the second half of 2018. The findings of the analyses and the connected new CR strategies will be presented after the split. We have identified the material issues for the respective businesses and aim to align them with the goals, targets and overall strategy going forward.
*Top (above the dotted line), this is the topic that is our biggest differentiator and we can create the most impact (16 content quality).
Middle (between the dotted lines), these are the focus topics, areas that we prioritise and continuously work on.
Bottom (under the dotted line), these are the base topics, areas that we constantly work on in our daily operations.
* *Numbering for reference in the graph is not in order of importance.
MTG’s four focus areas:
| Environmental Care
1. Reduce energy consumption
| Social Impact
5. Ensure and promote equality and diversity for employees
| Business Ethics
11. Effective anti-corruption management
| Media Responsibility
16. Content quality
MTG is a leading international digital entertainment group and we are shaping the future of entertainment by connecting consumers with the content that they love in as many ways as possible. Our brands span free-tv and pay-TV, radio and next generation entertainment experiences in esports, digital video content and online gaming. We don’t have any banned products in our markets. Born in Sweden, our shares are listed on Nasdaq Stockholm and MTG’s headquarters is located in Stockholm.
* A country where MTG operates is a country where MTG’s legal entities are based/registered.