Radio
MTG Radio comprises the Group’s national networks and local radio stations in Sweden, Norway, Estonia, Latvia and Lithuania.
The Group’s radio operations include the leading national commercial networks, RIX FM and P4, in Sweden and Norway respectively. The business area reported 12% sales growth in 2008.
The Group’s wholly owned operations reported a 33% increase in operating profits of SEK 165 (124) million with enhanced operating margins of 21% (17%).
Online
The Online business area comprises MTG Internet Retailing, Bet24 and Playahead. MTG Internet Retailing comprises the CDON.COM, Gymgrossisten.com, Bodystore.com, Nelly.com, Linus-Lotta.com and BookPlus.fi businesses.
Sales for the Online business area grew by 18% in 2008. Underlying sales growth for the business area was 13% in 2008. CDON reported sales of over SEK 1 billion for the first time ever and the combined MTG Internet Retailing business reported a 41% sales growth. Gymgrossisten.com was acquired at the beginning of 2008. Bet24 reported 22% sales growth, with gross profits up 19%.
The results included SEK 31 million of costs for the development of the Group’s online pay-TV operations, and a SEK 76 million non-cash goodwill impairment charge at the Playahead online social networking community. The results also reflected the investments being made to develop the various Online businesses acquired in 2007 and at the beginning of 2008.
Modern Studios
The Modern Studios Business area includes companies such as Strix Television, which produce and license a wide range of content.
Net sales for the Modern Studios business area declined year on year to SEK 373 (478) million and the business area reported a SEK -6 ( 39) million operating result. All of the Modern Studios companies were profitable in the fourth quarter following increased sales of successful formats and, compared to last year, the closure of loss making Sonet Film.