Strong Growth In Emerging Markets
First Quarter Highlights
As previously announced, the Group continues to expect its Nordic pay-TV business to grow its revenues at constant exchange rates in 2013, and to report an operating (EBIT) margin of approximately 10-12% for the full year 2013. The segment margin is expected to increase in 2014.
The Group also continues to expect its Emerging Market pay-TV operations to achieve a breakeven EBIT result for the full year 2013 with rising profitability levels in 2014.
Comment from President & CEO
Jørgen Madsen Lindemann, President and Chief Executive Officer, commented: “The first quarter is a seasonally small sales period but these results do indicate clear positive momentum across the business. The high sales growth in the emerging market free-TV operations reflected both the first impact of the strategic sales agreements in the Czech Republic and Bulgaria, as well as further underlying advertising market share gains in almost all of our territories on the back of higher ratings. We were the largest free-TV media house in the Czech Republic for the first time on a quarterly basis, when measured by advertising market share, and this is a significant milestone for the Group. Our Scandinavian audience shares have now stabilized or improved and we will continue to benefit from penetration gains and the addition of new channels. We will invest in momentum across our territories, in order to capture market share despite the soft overall advertising environment.”
“On the pay-TV side, the Viaplay online service in the Nordics has continued its rapid expansion and achieved record number of daily viewers, as well as consistently high customer ratings. Revenues for the Nordic pay-TV business are up as expected and primarily reflected the consolidation of the TV3 Sport channels in Denmark. The emerging market pay-TV businesses have also continued to expand rapidly by adding satellite subscribers and wholesale subscriptions year on year. We are investing in the future growth of our Nordic and emerging markets businesses as planned and profitability levels are tracking accordingly this year ahead of rising profitability next year.”
“We convert a high proportion of our earnings into cash flow and also receive dividends from our principal associated company, so we ended the quarter in a net cash position and with an even stronger balance sheet. We have announced our intention to pay out an increased dividend to shareholders this year, but we are a growth company and are more focused than ever on reviewing a wide range of organic and M&A led investment and partnership opportunities to drive our future growth.”
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Capital Markets Day
MTG will host its Capital Markets Day on Thursday 13 June 2013 at the Stockholm Waterfront Congress Centre in Stockholm. The Capital Markets Day will feature a full day of presentations by MTG executives, which will be followed by an evening reception.
The company will host a conference call today at 15.00 Stockholm local time, 14.00 London local time and 09.00 New York local time. To participate in the conference call, please dial:
Sweden: +46(0)8 5352 6408UK: +44(0)20 3450 9987US: +1646 254 3367
The access pin code for the call is 1466763
To listen to the conference call online and for further information please visit www.mtg.se.
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For further information, please visit www.mtg.se, or contact:
Jørgen Madsen Lindemann, President & Chief Executive OfficerMathias Hermansson, Chief Financial OfficerTel: +46 (0) 8 562 000 50
Stockholm, 18 April 2013
Jørgen Madsen Lindemann, President & Chief Executive Officer
Modern Times Group MTG ABSkeppsbron 18P.O. Box 2094SE-103 13 Stockholm, SwedenRegistration number: 556309-9158
Forward-looking information and Safe Harbour Statement under the U.S. Private Securities Litigation Reform Act of 1995This report contains forward-looking information based on the current expectation of MTG management. Although management deems that the expectations presented by such forward-looking information are reasonable, such forward-looking information is subject to risks and uncertainties and no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably when compared to what is stated in the forward-looking information, due to such factors as described above in the Risks & Uncertainties section.
Modern Times Group (MTG) is an international entertainment broadcasting group with operations that span four continents and include free-TV, pay-TV, radio and content production businesses. MTG’s Viasat Broadcasting operates free-TV and pay-TV channels, which are available on Viasat’s own satellite platforms and third party networks, and also distributes TV content over the internet. MTG is also the largest shareholder in CTC Media, which is Russia’s leading independent television broadcaster.
Modern Times Group is a growth company and generated net sales of SEK 13.3 billion in 2012. MTG’s Class A and B shares are listed on Nasdaq OMX Stockholm’s Large Cap index under the symbols ‘MTGA’ and ‘MTGB’.
The information in this Full Year report is that which Modern Times Group MTG AB is required to disclose under the Securities Market Act and/or the Financial Instruments Trading Act. It was released for publication at 13.00 CET on 18 April 2013.