Letter from the CEO
Since MTG was born in Sweden in 1987, we have been on a journey to ignite content experiences for our ever-growing audiences. Our entrepreneurial spirit has taken us far beyond commercial TV and the borders of Sweden. This spirit has enabled us to navigate a world that has changed so much due to unprecedented technological progress and major socio-economic shifts.
Today we are a structurally different company from what we were just a few years ago, and with perhaps the broadest entertainment offering in our industry.
2017 has been one of the most successful years in MTG’s history: 8% organic sales growth, 19% profit growth and 33% total shareholder returns tell their own story. This success is based on following a clear strategy and living according to our brand values. It is also based on our shared belief that responsible entertainment is better entertainment.
This is why Corporate Responsibility is the cornerstone of our brand and a key reference point in our decision-making. Our CR work focuses on four priority areas: Media Responsibility, Social Impact, Business Ethics and Environmental Care.
These priority areas reflect our commitment to stay relevant by adapting quickly to the changing media landscape. Change is in our DNA and we are committed to shaping the future of responsible entertainment together.
We reach millions of people every day with our content and products. This gives us the opportunity to support United Nations Sustainable Development Goals and make a positive difference in the daily lives of our audiences and customers around the world.
We measure our efforts against the very highest standards and globally recognised sustainability frameworks. We are committed to the UN Global Compact, OECD Guidelines for Multinational Enterprises, the UN Guiding Principles for Business and Human Rights and UK Modern Slavery Act. In 2017, we continued to further embed the UN Sustainable Development Goals into our corporate responsibility activities.
Our ambition and objectives are clear, as are the challenges and opportunities. We have delivered hyper growth and a first profit for our MTGx’s global digital operations in 2017, and we are continuing to integrate new members of the MTG family into our culture and business practices.
Data security is a key responsibility for MTG and awareness levels can vary between the traditional broadcasting (TV, satellite and radio) businesses and new digital-first companies. We are using gaps that occur as opportunities to further improve our processes, reinforce our information security priorities, and become even more transparent and responsive towards our customers.
This report shows the major steps forward we have taken in 2017. Here are my personal highlights:
MTG has been included in the 2017 Dow Jones Sustainability World Index – the industry standard for corporate sustainability and the first global index to track the world’s leading sustainability-driven companies. From a total of 72 media companies that are part of the DSJI universe, only 6 media companies were included in the world index, and MTG was one of them for the sixth consecutive year. We are also included in RobecoSAM’s Sustainability Yearbook, which helps investors to identify companies that are well positioned to create long term shareholder value.
Our annual employee survey showed that 94% of respondents are willing to make an extra effort to make MTG a more successful company. This is so important in the world where new talent seeks purpose, along with an opportunity to make a difference.
We welcomed over 70 talented women to our offices in Stockholm on International Women’s Day and encouraged them to pursue a career in media and technology. We also continued our efforts to support UN SDG number 5 by encouraging more gender equal work environments in our offices.
We produced an online documentary on the future of media and its impact on societies and democracy.
And most of all, we ended 2017 with 79% of MTG employees signing up to a refreshed and more relevant Code of Conduct, which sets out who we are, what we stand for and how we do business.
Thank you for taking the time to read this letter and for your continued support, which is a driving force in making MTG better. In the over 20 years that I have dedicated to MTG, I have never seen so many opportunities in front of us, and that is really exciting.
Jørgen Madsen Lindemann
Letter from CR Team
Today, MTG is a team of approximately 3,700 people around the world. We are united by a passion to create memorable experiences in music, sports, drama, reality shows, live esports events, online games – and so much more! – and to connect our audiences with the content that they love. We are on an exciting journey to become a leading digital entertainer and, together, we can use the power of media to make a positive impact on people’s lives. We believe that responsible entertainment is better entertainment!
Diverse talent empowered by the same values and working towards the same goals can make a big and positive difference in all societies.
This is a responsibility we take seriously, which is why we have expanded our support in 2017 for the United Nations Sustainable Development Goals – a set of goals to protect the planet and ensure prosperity for all – by aligning our work and targets to specific SDGs.
This report shows our progress and shares the lessons that we’ve learned along the way. Most importantly, this report is a platform for our colleagues to talk about how our teams are shaping the future of entertainment. Whether it’s content production and distribution, legal work behind our innovative digital services, or talent acquisition initiatives, we aim to create working environments that embrace plurality and diversity of background, approaches and opinions.
Explore our stories and get in touch to let us know what you think…or join us on our exciting journey.
Welcome to our 2017 Corporate Responsibility Report!
SVP, Head of Corporate Responsibility
Senior Corporate Responsibility Manager
Junior Corporate Responsibility Manager
Sustainable Development Goals
To contribute and create better value for all our stakeholders, we committed ourselves to the United Nations Sustainable Development Goal (SDG) 5, Gender Equality, in 2016 and decided to extend our commitment to other SDGs in 2017. We added SDG 3, Healthy Lives and Well-Being, SDG 4, Quality Education, SDG 7, Energy Efficiency, SDG 10, Reduced Inequalities, SDG 13, Climate action, SDG 16, Peace and Justice, and SDG 17, Partnership for the Goals. We have carefully chosen the SDGs that are the most relevant to our strategy and our values as well as where we can contribute the most to the Agenda 2030.
Below we illustrate how we, in our different roles – as an employer, global digital entertainer and corporate citizen – impact our people, audiences and society.
The changing role of media companies
In today’s world, mobile and connected means global. It also means power – the power to instantly reach a switched-on and empowered network of users.
Accessibility is a distinctive feature of the Fourth Industrial Revolution that brings all of us together to tackle universal humanitarian issues and innovate through sharing ideas. Media and entertainment are right at the centre of this digital revolution, both as its driving force and an industry influenced the most by technological changes. Tools that not long ago were media companies’ prerogative and gave them the ultimate power to shape views and beliefs through creating and distributing content, are now in the hands of millions of individuals worldwide. It’s an empowering opportunity, but it also poses a question whether we as a society have a robust regulatory framework to use these tools for greater good.
Ability to continuously adapt is not only a challenge for media businesses, but also for governments. Being mobile and connected enables citizens of the world to engage directly with opinion leaders, rather than institutions and its representatives, and challenge the notion of local and global when making important political, economical and environmental decisions. Social media plays an important role in promoting our democratic rights, but it also creates a segregated environment that can be misused by those with significant capital.
We’ve talked to experts in social media, politics, media law and corporate responsibility from around the world to explore what, or who, is shaping the future of media.
SVP, Head of Corporate Responsibility
International Human Rights Expert, former OSCE Representative on Freedom of the Media
Digital Researcher, CASM, Demos
Director and Professor of Society and Internet, Oxford Internet Institute, University of Oxford
Youtuber, comedian, TV Presenter and Author
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. We have continued to work with our current materiality analysis during 2017, but as our digital transformation continues and we focus on the integration of our digital ventures businesses, we consider it essential to conduct a new analysis during 2018. The aim of the new analysis will be to identify the material issues of our digital ventures and aligning them with our goals, targets and strategy going forward.
*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-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.
Key figures 2017
|NET SALES AND FINANCIAL POSITION||2015||2016||2017|
|Net sales (MSEK)||16,218||17,299||17,537|
|Operating income before items affecting comparability (MSEK)||1,268||1,347||1,263|
|Basic earnings per share||3.22||-3||18.73|
|Average number of employees||3,995||3,805||3,280|
|Total shareholders’ equity and liabilities||16,497||17,699||19,285|