At Modern Times Group we believe that responsible entertainment is better entertainment. Corporate Responsibility is a key pillar of our brand.
Mauro Silva, SVP Head of Brand and Corporate Responsibility at MTG, talks about how we offer responsible entertainment, while acting ethically, creating a fair and healthy environment for our employees and managing our impact on the environment and audiences.
Letter from the CEO
During 2016, we accelerated our strategic transformation from a traditional broadcaster into a leading digital video entertainer. We’re investing in relevant, complementary and scalable content and communities – and as a result, we’re now delivering amazing experiences that reach more people, in more places and on more devices than ever before.
MTG’s ESL and DreamHack businesses make us the biggest player in esports – a sector expected to engage almost 200 million enthusiasts in 2017. Through Zoomin.TV, we operate the world’s fifth largest digital video network with 2 billion monthly views, while Splay is the largest network in the Nordic region. And we recently invested in InnoGames, which develops and publishes games with 150 million registered players. Our broadcast TV and video streaming services, meanwhile, offer storytelling that’s off the charts.
This transformation is driven by our desire to shape the future of entertainment. Through smartphones, tablets and ultra-fast broadband networks, people of all ages and backgrounds now turn to digital content, platforms and communities in order to be entertained, informed and engaged. Our product development is all about staying relevant and being where the audience is. When eyeballs shift, we always try to get there first.
Broader horizons bring broader responsibilities. Whether our customers are streaming an original series that raises important social issues, taking the family to a digital festival or trusting us with their personal data, MTG touches their lives in many ways.
At all times, we strive to respect the privacy rights of our customers and employees while working at the cutting edge of innovation. Data protection is therefore one of our highest priorities. We are also keenly aware of the importance of child protection and of providing kids’ content that’s both entertaining and educational – as younger millennial and Generation Z audiences embrace our products and services on demand and on mobile.
Achievements and progress
At MTG, corporate responsibility (CR) is at the very core of our business, and is closely and carefully integrated with our strategy, values and culture. We reinforced our CR strategy with four focus areas in 2016 – media responsibility, social impact, business ethics and environmental care.
We are committed to the UN Global Compact, OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles for Business and Human Rights. Our ambition is for these principles and values to guide everything we do, and to become the foundation for MTG’s Code of Conduct and policy framework.
As this report shows, we took a big step forward in 2016. Here are my personal highlights:
- We are committed to ensuring and promoting equality and diversity for all MTG employees, and to a 50/50 gender split in our management teams by 2020. Studies show that diverse and equal companies achieve better results, and we will implement our roadmap during 2017 to reach this goal.
- MTG was included in the Dow Jones Sustainability Indices for the fifth consecutive year as one of the top nine media companies in the global index. We have also been included for the fourth consecutive year in RobecoSAM’s Sustainability Yearbook 2016, which helps investors to identify companies that are well positioned to create long-term shareholder value.
- All management teams, including leaders from the newest members of the MTG portfolio, received training in our Anti-Bribery and Corruption policies and guidelines, with further learning planned for 2017.
Our sustainability outlook
We know we can do even more. In 2017, we will map our energy consumption, starting with our largest markets, with the objective of reducing it 20% by 2020. We will enhance our data protection procedures and implement a compliance plan that proactively meets the demands of the General Data Protection Regulation that comes into force in May 2018. And we will focus on creating even more inclusive and accessible content that reflects the diversity of our audiences, while upholding human rights and freedom of expression.
We will set new CR objectives and targets for 2020 and connect them to relevant UN Sustainable Development Goals, in order to create even greater societal value. We are particularly committed to Goal #5: achieve gender equality and empower all women and girls.
Consumer behaviour, media formats and story-telling techniques keep evolving, and so will we. And as we transform into the leading digital entertainer in each of our markets and reach more people than ever before, we have an opportunity to make a truly global impact.
Jørgen Madsen Lindemann
Letter from the CR Team
Welcome to our 2016 Corporate Responsibility Report!
Today, MTG delivers memorable digital experiences that engage millions of people around the world. We’re on an exciting journey to become a leading digital video entertainer. Our ambition is greater than ever – and so are our responsibilities.
MTG’s vision is to shape the future of responsible entertainment. During 2016, we reinforced our Corporate Responsibility strategy to reflect this vision. We talked to our customers, partners, investors and employees to learn what matters most to them. We also have an ongoing strategic dialogue with our global media peers through the Responsible Media Forum, which helps us drive responsibility both in our business and across the industry. As a result, we will focus on four areas. We aim to offer responsible entertainment, while acting ethically, committing to our employees and managing our limited impact on the environment.
We have also put six key topics at the centre of our responsibility efforts for the coming years:
The quality of our content
Protection of children and minors online
Equality and diversity at work
Health, safety and security at work
Effective anti-corruption management
Data and privacy protection for customers and employees
In this report, we show our progress and share what we’ve learned along the way. Most importantly, we hear from MTG’s employees and stakeholders. Great storytelling is what MTG is all about – and our diversity, our commitment to local content and what it’s like to be the world’s leading female Counter-Strike player are some of the most inspiring stories we’ve heard all year. It’s a reminder that our business is on the right path, and it strengthens our belief that responsible entertainment is the right kind of entertainment
Explore our stories and get in touch to let us know what you think, or to join us in our journey.
Mauro Silva Lena Ander
SVP, Head of Brand Experience and Corporate Responsibility Senior Corporate Responsibility Manager
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 we reinforced with four focus areas in 2016 – media responsibility, social impact, business ethics and environmental care. To create even greater value, we will set new CR objectives and targets for 2020 and connect them to relevant UN Sustainable Development Goals.
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. In 2016, MTG interviewed over 400 people through internal and external workshops and surveys. We used these findings to form the foundation of our CR strategy, and to define the key focus areas illustrated by the materiality matrix.
*Dotted line (low) – Boundary for topics which are considered base topics. Dotted line (high) boundary for topics considered focus topics for engagement. Reference point of the most important topic: number 16 (content quality).
* *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- and pay-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 and MTG’s headquarters is located in Stockholm.
Key figures 2016
|NET SALES AND FINANCIAL POSITION||2014||2015||2016|
|Net sales (MSEK)||15,746||16,218||17,299|
|Operating income before items affecting comparability (MSEK)||1,290||1,268||1,347|
|Basic earnings per share||17.10||3.22||-3|
|Average number of employees||4,111||3,995||3,805|
|Total shareholders’ equity and liabilities||14,131||16,497||17,699|