Radio
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 segment reported a 13% sales decline to SEK 694 (800) million in 2009, which was in line with the overall declines in the national and local advertising markets in each country of operations.
The Group’s wholly owned operations reported a 56% decrease in operating profits of SEK 73 (165) million with operating margins of 10% (21%).
Significant events
MTG was awarded four local radio licenses in Oslo, Stavanger, Bergen and Trondheim in October 2009 and the new stations began broadcasting on 4 January 2010. These cities are the four largest in Norway, with a potential reach of two million listeners.
Online
The Online business segment comprises MTG Internet Retailing and Bet24 and comprised Playahead. MTG Internet Retailing comprises the CDON.COM, Gymgrossisten.com and Nelly.com online stores. Bodystore.com is integrated in the Gymgrossisten.com business, while Linus-Lotta.com has become part of the Nelly.com business and BookPlus.fi part of the CDON.com business.
Sales for the Online business segment grew by 26% to SEK 2,300 (1,831) million in 2009, and the combined MTG Internet Retailing business reported a 36% sales growth for the year.
The Online business segment reported operating profits of SEK 120 (78) million, a 53% increase for the year when excluding non-recurring items, with operating margins 5% (4%).The results excluded SEK 47 (76) million goodwill impairment and close-down costs for the Playahead business.
Modern Studios
The Modern Studios Business segment primarily comprises Strix Television, which produces and licenses a wide range of programme content.
Net sales for the Modern Studios business segment increased to SEK 469 (373) million for 2009, and the business segment reported an operating profit of SEK 19 (-6) million. The sales growth reflected market share gains in Scandinavia and the sale of licenses to Strix TV formats to international broadcasters and production companies.