MTG has completed the sale of its free-TV broadcasting and production businesses in Ghana and Nigeria to Econet Media Group for an undisclosed consideration. The previously announced sale of MTG’s free-TV broadcasting business in Tanzania to the same buyer is pending local regulatory approval and is expected to close in Q1 2017.
The sales reflect MTG’s ongoing strategic transformation from a traditional broadcaster into a digital video entertainment company.
The African free-TV and production businesses generated sales of SEK 21 million and an EBIT result of SEK -27 million for the first 11 months of 2016, of which Ghana and Nigeria contributed with sales of SEK 18 million and EBIT of SEK -11 million.
The sale of MTG’s businesses in Ghana and Nigeria will result in a preliminary net capital loss of some SEK -24 million, which will be reported within items affecting comparability (IAC) in MTG’s Q4 2016 financial results. The sale of the Tanzanian operations is expected to result in an insignificant net capital effect.
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MTG (Modern Times Group MTG AB (publ.)) 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 TV, radio and next generation entertainment experiences in esports, digital video networks and online gaming. Born in Sweden, our shares are listed on Nasdaq Stockholm (‘MTGA’ and ‘MTGB’).