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MTG sees solid third quarter

Jørgen Madsen Lindemann, MTG president and CEO.

Jørgen Madsen Lindemann, MTG president and CEO.

Modern Times Group has posted solid third quarter results, posting record Q3 sales of SEK4.126 billion (€425 million), up 7% on a like-for-like basis.

Operating income was SEK162 million, up from a loss of SEK412 million last year, but down from SEK240 million on a like-for-like basis thanks to ongoing investment in content, the expansion of MTGx and currency movements.

Nordic entertainment revenues were up 11%, the highest growth since Q4 2010, driven by more subscribers for Viaplay and rises in prices.

Free TV had a mixed quarter, with higher sales in Sweden and Norway partly offset by lower sales in Denmark.

International entertainment saw organic sales rise by 8%, driven by the Czech Republic and Bulgaria. MTG Studios profits were up 68%.

The group is continuing to invest in new digital activities, including its recent acquisition of a 35% stake in online gaming company InnoGames.

“Video consumption is shifting online, on mobile and on demand, and we have a clear and focused strategy to capitalise on this global change. We therefore continue to actively review our portfolio of operations to ensure that we concentrate our resources on those products and businesses that offer the greatest potential for the future. Financially, we are in good shape with considerable operating leverage as a result of the cost transformation that we have made,” said CEO Jørgen Madsen Lindemann.