Mtg q4 presentation final

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Mtg q4 presentation final

  1. 1. 1 Modern Times Group MTG Fourth Quarter & Full year 2011 Financial Results
  2. 2. 2 Q42011FINANCIALRESULTS
  3. 3. 3 Fourth Quarter 2011 Record Sales & Increased Net Cash Flow • Sales up 3% y/y at constant & reported FX to SEK 3,711 (3,618) mn • OPEX up y/y to SEK 3,160 (2,965) mn & up 7% at constant FX • EBIT before associated company income & non-recurring items of SEK 551 (653) mn • Total EBIT of SEK -2,517 (746) mn incl. associated company income of SEK 114 (93) mn & SEK -3,182 mn of non-recurring items, primarily related to impairment of Bulgarian broadcasting goodwill • PTP of SEK -2,519 (741) mn • Net income from continuing operations of SEK -2,564 (634) mn & basic EPS from continuing operations of SEK -38.87 (9.40) • Net cash flow from operations up 10% y/y to SEK 1,107 (1,009) mn • Included SEK 174 (131) mn of dividends from CTC Media Q42011FinancialResults SEK mn * EBIT excluding associated income & non-recurring items 3.618 3.711 653 551 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 Q4 2010 Q4 2011 Revenue EBIT* EBIT margin
  4. 4. 4 Full Year 2011 Lower Gearing & Higher Dividend • Sales up 6% y/y at constant FX & up 3% at reported FX to SEK 13,473 (13,101) mn • OPEX up y/y to SEK 11,540 (11,160) mn & up 7% at constant FX • EBIT of SEK 1,933 (1,941) mn when excluding associated company income & non-recurring items • Total EBIT of SEK -637 (2,355) mn incl. associated company income of SEK 611 (413) mn & SEK -3,182 mn of non-recurring items • PTP of SEK -727 (2,321) mn • Net income from continuing operations of SEK -1,289 (1,750) mn & basic EPS from continuing operations of SEK -19.98 (26.22) • Net cash flow from operations up 17% y/y to SEK 1,797 (1,533) mn • Including SEK 319 (216) mn of dividends from CTC Media • Board of Directors to propose increased annual cash dividend of SEK 9.00 (7.50) per share & adopts dividend policy to distribute at least 30% of recurring net profit to shareholders as annual ordinary dividend FY2011FinancialResults SEK mn * EBIT excluding associated income & non-recurring items 13.101 13.473 1.941 1.933 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 FY 2010 FY 2011 Revenue EBIT* EBIT margin
  5. 5. Operatingreview
  6. 6. 6 Free-TV Scandinavia Financial Highlights • Sales of SEK 1,240 (1,229) mn in Q4 & SEK 4,393 (4,247) mn for FY • Sales up 1% y/y in Q4 & 6% for full year at constant FX • OPEX of SEK 958 (879) mn in Q4 & SEK 3,316 (3,165) mn for full year • Up y/y at constant FX for both periods • Increased investments in programming in all 3 countries • EBIT down to SEK 282 (350) mn in Q4 & stable at SEK 1,077 (1,082) mn for FY • EBIT margin of 22.7% (28.5%) in Q4 & 24.5% (25.5%) for FY Operatingreview SEK mn 1.229 1.240 4.247 4.393 350 282 1.082 1.077 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000 Q4 2010 Q4 2011 FY 2010 FY 2011 Revenue EBIT EBIT margin
  7. 7. 7 Free-TV Scandinavia Operating Highlights Sweden • Target audience share of 34.0% (35.2%) in Q4 • Spring programming schedules launched earlier y/y in 2012 • Focus on new series of popular local productions & proven international programmes Norway • Target audience share of 20.1% (23.1%) • Investing in programming content • Spring 2012 schedules feature well- established formats launched from January onwards Denmark • Target audience share of 22.2% (24.7%) • Earlier y/y launch of Spring schedules • Focus on new seasons of successful formats Operatingreview Commercial Audience Share (15-49) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Sweden Norway Denmark
  8. 8. 8 Pay-TV Nordic Financial Highlights • Sales of SEK 1,221 (1,137) mn in Q4 & SEK 4,730 (4,484) mn for FY • Up 7% y/y in Q4 & 8% for FY at constant FX • OPEX of SEK 976 (929) mn in Q4 & SEK 3,807 (3,662) mn for FY • Up y/y at constant FX • Ongoing investments in Viaplay streaming platform & premium content investments • EBIT up 18% y/y to SEK 246 (208) mn in Q4 & SEK 923 (822) mn for FY • Increased operating margins of 20% (18%) for both periods Operatingreview SEK mn 1.137 1.221 4.484 4.730 208 246 822 923 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000 Q4 2010 Q4 2011 FY 2010 FY 2011 Revenue EBIT EBIT margin
  9. 9. 9 Pay-TV Nordic Operating Highlights • Premium subscriber base up by 16,000 subscribers net in Q4 & stable y/y • Driven by third party subscriber growth in all three Scandinavian countries • Satellite subscribers stable q/q • Premium ARPU up by 5% y/y to SEK 4,791 (4,555) & stable compared to SEK 4,751 in Q4 • Price increases previously introduced • Ongoing rise in penetration of value-added services Operatingreview ThousandsThousands Premium subscribers Value added services 0 200 400 600 800 1.000 1.200 Satellite subscribers 3'rd party network subscribers 0 50 100 150 200 250 300 350 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 ViasatPlus HDTV Multi-room
  10. 10. 10 Free-TV Emerging Markets Financial Highlights • Total sales of SEK 655 (631) mn in Q4 & SEK 2,073 (2,004) mn • Up 7% y/y at constant FX in Q4 & 8% for FY at constant FX • OPEX up 7% y/y in Q4 & 8% for FY at constant FX • Total EBIT up 19% in Q4 to SEK 67 (56) mn & improved EBIT of SEK 32 (-43) mn for FY • EBIT margin of 10% (9%) in Q4 & 2% (-) for FY • Baltic, Czech & Bulgarian sales of SEK 591 (556) mn in Q4 & SEK 1,845 (1,754) mn for FY • Up 9% at constant FX for both periods • Combined OPEX of SEK 512 (481) mn in Q4 & SEK 1,721 (1,702) mn for FY • Up y/y at constant FX for both periods • EBIT margin of 13% (13%) in Q4 & 7% (3%) for FY Free-TV Emerging Markets Baltics, Czech Republic & Bulgaria SEK mn SEK mn 631 655 2.004 2.073 56 67 -43 32 -500 0 500 1.000 1.500 2.000 2.500 Q4 2010 Q4 2011 FY 2010 FY 2011 Revenue EBIT 556 591 1.754 1.845 75 79 52 124 0 500 1.000 1.500 2.000 Q4 2010 Q4 2011 FY 2010 FY 2011 Revenue EBIT
  11. 11. 11 Free-TV Emerging Markets Operating Highlights Baltics • Sales up 1% y/y in Q4 & up 8% for FY at constant FX • Increased pan-Baltic target audience share of 43.4% (42.0%) following programming investments • New channel TV8 in Lithuania reached 1% CSOV in 15-49 demographic by year end Czech Republic • Sales up 22% y/y in Q4 & 20% for FY at constant FX following viewing and ad market share gains • Continued significant CSOV gains both y/y and q/q, from 25.9% in Q4 2010 to 30.0% in Q4 2011 Bulgaria • Sales down 11% y/y in Q4 & down 12% for FY at constant FX, following decline in overall TV ad market & low prevailing ad prices • Combined CSOV reflected ongoing programming investments Operatingreview 10% 20% 30% 40% 50% Estonia (15-49) Latvia (15-49) Lithuania (15-49) Czech Republic (15-54) Bulgaria (18-49) Commercial Audience Share
  12. 12. 12 Pay-TV Emerging Markets Financial Highlights • Sales* of SEK 237 (225) mn in Q4 & SEK 922 (896) mn for FY • Up 6% y/y in Q4 & 13% for FY at constant FX • Continued subscriber intake on Ukrainian Russian & Baltic platforms + minipay • Y/Y effect on YTD sales of consolidation of 50% of Raduga TV from February 2010 & full consolidation of Viasat Ukraine from June 2010 • OPEX of SEK 231 (196) mn in Q4 & SEK 874 (784) mn for FY & also up y/y at constant FX • Launch of 10 new mini-pay Viasat channels since beginning of 2010 • Ongoing investments in Ukrainian & Russian platforms • Consolidation of 50% of Raduga TV & 100% of Viasat Ukraine • EBIT* of SEK 7 (29) mn in Q4 & SEK 49 (112) for FY • EBIT margins of 3% (13%) in Q4 & 5% (12%) for FY Operatingreview SEK mn 225 237 896 922 29 7 112 49 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 200 400 600 800 1.000 1.200 Q4 2010 Q4 2011 FY 2010 FY 2011 Revenue EBIT EBIT margin * Including the effect from the Q4 alignment of the accounting treatment of the Group’s Ukrainian satellite pay-TV business’ results. This alignment generated a revenue impact of SEK -29 mn and an EBIT impact of SEK -18 mn
  13. 13. 13 Pay-TV Emerging Markets Operating Highlights • 102,000 net new subscribers added y/y & 72,000 subscribers added in Q4 • Accelerating subscriber intake in Ukraine and Russia • Growing Baltic subscriber base • Wholesale mini-pay business subscriptions up 28% y/y & 5% q/q to 64.3 million in Q4 from 50.2 million in Q4 2010 • Reflected signing of new contracts in Russia in particular Operatingreview Satellite subscribers Mini-pay TV subscriptions ThousandsThousands 0 100 200 300 400 500 600 30.000 40.000 50.000 60.000 70.000 80.000
  14. 14. 14 Other Businesses Highlights • Comprises MTG’s Radio, Bet24 and Modern Studios operations • Sales of SEK 450 (455) mn in Q4 & SEK 1,675 (1,804) mn for FY • Down 1% y/y & down 5% for FY at constant FX • Combined OPEX of SEK 418 (404) mn in Q4 & SEK 1,566 (1,636) mn for FY • EBIT before associated company income of SEK 31 (52) mn in Q4 & 109 (168) mn for FY • EBIT margins of 7% (12%) in Q4 & 7% (10%) for FY • Total EBIT of SEK 32 (53) mn in Q4 & SEK 114 (175) mn for FY when including SEK 1 (1) mn & SEK 5 (6) mn of associated company income for the two periods Operatingreview SEK mn 455 450 1.804 1.675 52 31 168 109 0% 5% 10% 15% 20% 25% 30% 0 200 400 600 800 1.000 1.200 1.400 1.600 1.800 2.000 Q4 2010 Q4 2011 FY 2010 FY 2011 Revenue EBIT EBIT margin
  15. 15. 15 FinancialReview
  16. 16. 16 Income Statement • Depreciation & amortisation charges of SEK 38 (57) mn in Q4 & SEK 183 (218) mn for FY • Y/Y reduction in net interest charges to SEK -12 (-22) mn in Q4 & SEK -59 (-115) mn for FY • Y/Y change in other financial items in included • SEK 43 (2) mn of non-cash financial gain in Q4 & SEK 14 (2) mn for FY from the change in value of the option element of the SEK 250 mn CDON Group convertible bond • Non-cash financial gain of following new share issues by CTC Media and the resulting dilution of MTG’s ownership in the company of SEK 2 (17) mn in Q4 & SEK 22 (69) mn for FY FinancialReview (SEK mn) Q4 2011 Q4 2010 FY 2011 FY 2010 Net sales 3,711 3,618 13,473 13,101 EBIT before associated company income & non-recurring items 551 653 1,933 1,941 Associated company income 114 93 611 413 Recurring EBIT 665 746 2,544 2,355 Non-recurring items -3,182 - -3,182 - Net interest & other financial items -2 -5 -90 -34 Income before tax -2,519 741 -727 2,321 Net income from continuing operations -2,564 634 -1,289 1,750 Net income from discontinued operations - 1,724 - 1,790 Net income -2,564 2,359 -1,289 3,541 Basic EPS from continuing operations -38.87 9.40 -19.98 26.22 Total basic EPS -38.87 35.43 -19.98 53.34
  17. 17. 17 Cash Flow • Cash flow from operations included receipt of SEK 174 (131) mn of dividend payments from CTC Media in Q4 & SEK 319 (216) mn for FY • No investments in businesses during 2011, compared to SEK 275 mn during 2010, which primarily comprised the acquisition of shares in Raduga TV & Viasat Ukraine • CAPEX of SEK 34 (38) mn in Q4 & SEK 120 (157) mn for FY = less than 1% of Group net sales for both periods FinancialReview (SEK mn) Q4 2011 Q4 2010 FY 2011 FY 2010 Cash flow from operations 519 578 1,853 1,810 Changes in working capital 588 431 -56 -277 Net cash flow from operations 1,107 1,009 1,797 1,533 Cash flow used in investing activities -29 -300 -115 -683 Cash flow used in financing activities -966 -660 -1,737 -897 Cash flow from discontinued operations – CDON Group - -46 - -88 Net change in cash & cash equivalents 112 2 -55 -135
  18. 18. 18 Financial Position • SEK 1,542 (2,700) mn of the Group’s available credit was drawn down as at 31 Dec 2011 • Net debt of SEK down to SEK 797 (2,026) mn as at 31 Dec 2011 & compared to net debt of SEK 1,861 mn as at 30 Sep 2011 • SEK 5,528 (4,400) mn of available liquid funds (cash & undrawn facilities) • SEK 1,878 (1,785) mn book value of 38.1% shareholding in CTC Media had public equity value of SEK 3,618 mn as at 31 Dec 2011 FinancialReview (SEK mn) 31 Dec 2011 31 Dec 2010 Non-current assets 5,612 8,648 Current assets 5,668 5,354 Total assets 11,281 14,002 Shareholders’ equity 4,350 6,239 Long-term liabilities 2,168 3,311 Current liabilities 4,763 4,452 Total equity & liabilities 11,281 14,002 Net debt / EBITDA 1,2 1,2 1,1 0,8 0,7 0,6 0,7 0,3
  19. 19. 19 Summary • Record sales following growth across all four broadcasting businesses • Best in class margins and 14% full year underlying margin despite investments • Adding subscribers in Nordic & Emerging Markets • Well positioned in the emerging advertising markets BUT market recovery is still lagging Western markets • High cash conversion levels & low gearing = increased proposed full year dividend + adopted dividend policy • Solid financial position & continue to invest in businesses that will drive long-term growth & development Summary
  20. 20. 20 For further information, please visit www.mtg.se or contact: MTG Investor Relations Tel: +44 7768 440 414 / +44 7590 098 188 Email: investor.relations@mtg.se Contactinformation

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