| Key figures (excluding non-recurring items) |
2009 |
2008 |
| Sales growth |
8% |
16% |
| Operating expenses growth (excl non-recurring expenses) |
12% |
14% |
| Operating income growth (excl non-recurring expenses) |
-15% |
28% |
| Operating margin (excl non-recurring expenses) |
14% |
20% |
| Tax rate |
23% |
27% |
Sales
MTG generated 8% net sales growth in 2009 to SEK 14,173 (13,166) million. The Scandinavian Free-TV and both the Nordic and Emerging Markets Pay-TV businesses, as well as the Online business area all reported sales growth for the year.
The Group’s revenue mix reflected its diversified and balanced structure, with 37% (43%) of revenues derived from advertising sales; 42% (38%) from subscription payments; and 21% (19%) from other business-to-business and business-to-consumer sales.
Operating expenses
Group operating costs were up 12% to SEK 12,519 (11,219) million when excluding non-recurring items. The increase reflected the consolidation of Nova Televizia, the launch or relaunch of 7 free-TV channels and the addition of 11 channels to the Group’s pay-TV offerings since the beginning of 2008, and marketing campaigns to drive pay-TV subscriber intake.
The Group reported SEK 3,352 million of non-recurring expenses for the year. This comprised EUR 296 million (approximately SEK 3,151 million) of non-recurring costs related to the impairment of the goodwill arising from the Group’s EUR 620 million acquisition of 100% of Nova Televizia in Bulgaria in 2008. The remaining SEK 201 million of costs related to goodwill write-downs by the Group’s Slovenian free-TV operations, close-down costs for the Playahead.com online social networking business, and the writing-down of programming-related assets by the Group’s free-TV broadcasting operations in the Baltics. The Group’s results for the full year 2008 included SEK 1,173 million of non-recurring income from the discontinued DTV Group operations and the SEK 76 million write-down of intangible assets in the Group’s Online business area.
Operating income
Group operating income for the year was SEK 1,654 (1,947) million when excluding associated company income and the impact of the non-recurring items.
Associated company income
The Group’s combined equity participations, primarily comprising the 39.4% interest in the earnings of CTC Media, contributed a total associated company income of SEK 270 (651) million for the year. MTG’s participation in CTC Media was diluted after the end of the year due to new share issues, and the Group now owns 38.9% of the issued and outstanding shares in CTC Media.
Net interest and other financial items
The Group’s net interest and other financial items amounted to SEK -197 (-61) million, which included SEK -171 (-28) million of net interest expenses. The increased interest expenses primarily reflected the increase in the Group’s borrowings during the latter part of 2008 following the acquisition of 100% of Nova Televizia in Bulgaria.
MTG successfully refinanced its SEK 3,000 million loan facility on 2 July 2009. The new SEK 3,000 million three year term loan, which was oversubscribed, was arranged by DnB NOR, Nordea, Skandinaviska Enskilda Banken and Svenska Handelsbanken as Mandated Lead Arrangers, and by Swedbank as Joint Lead Arranger.
Tax Group tax charges totalled SEK 383 (683) million, whilst paid taxes amounted to SEK 263 (544) million.
Net income and earnings per share
The Group reported a net result of SEK -2,008 (2,927) million, and basic earnings per share of SEK -30.86 (43.25). Basic earnings per share excluding non-recurring items amounted to SEK 20.40 (26.96).
Impact of foreign currency rate fluctuations
The Group’s sales were up 3% at constant exchange rates in 2009, and the Group’s operating costs were up 6% for the year.