Note 3 Business segments

The business is primarily divided into eight business segments. The segments have increased compared to last year, but the effect on the presentation is immaterial.
• Free-TV Scandinavia is a commercial free-TV broadcaster in Scandinavia.
• Pay-TV Nordic is a broadcaster in the Nordic countries, and comprises the DTH satellite broadcasting platform and pay-TV channels through third party cable and satellite networks.
• Free-TV Emerging Markets is a commercial free-TV broadcaster in Eastern Europe.
• Pay-TV Emerging Markets comprises the DTH satellite platforms in Eastern Europe and Viasat pay-TV channels distributed through third party cable and satellite networks.
• CTC Media is one of Russia's largest independent commercial television broadcaster and is listed on The Nasdaq Global Select Market.
The above TV broadcasting segments comprise the Viasat Broadcasting business area, which in previous years was regarded as one segment. To facilitate comparability between years, the TV broadcasting segments have been summarised in this presentation.
• Radio operates commercial radio stations in Sweden, Norway, Estonia, Latvia and Lithuania, and owns equity stakes in a Finnish national commercial radio network.
• Online operates internet retailing, the betting and gaming business as well as teletext in Spain, and operated a social network community up until 2009.
• Modern Studios produces television programmes and films, distributes films and television programmes, and produces and manages events mainly in Scandinavia. The segment also publishes customer magazines.
The stated figures for 2009 and 2008 are based on the same operational structure, where the 2008 figures have been adjusted to facilitate comparison.
        External Sales   Operating income
(SEK million)       2009 2008   2009 2008
Free-TV Scandinavia       3,652 3,531   820 809
Pay-TV Nordic       4,163 3,756   725 692
Free-TV Emerging Markets       2,091 2,149   -84 292
Pay-TV Emerging Markets       848 645   168 106
Associated company CTC Media       - -   254 629
Other and eliminations       164 171   21 14
Total Viasat Broadcasting business area       10,919 10,252   1,904 2,542
Radio       688 795   80 170
Online       2,299 1,816   120 79
Modern Studios       264 180   19 -6
Parent company and other companies       3 6   -200 -208
Total       14,173 13,049   1,924 2,575
Discontinued DTV Group         117   - 1,173
Asset impairment charges   Note 5         -3,352 -76
- of which Free-TV Emerging Markets             -3,304 -
- of which Online             -47 -76
Total Group       14,173 13,166   -1,428 3,671
                 
Within the Viasat Broadcasting business area and the Modern Studios segment, there are companies that provide the different segments with acquired and own produced TV-programmes. Such sales are made at market price.
            Internal sales
(SEK million)             2009 2008
Free-TV Scandinavia             168 156
Pay-TV Nordic             163 178
Free-TV Emerging Markets             4 1
Pay-TV Emerging Markets             27 14
Others             1,237 1,095
Total Viasat Broadcasting business area             1,599 1,444
Radio             5 5
Online             0 15
Modern Studios             205 193
Parent company and other companies             175 168
Total internal sales             1,985 1,825
                 
The business segments are responsible for the management of the operational assets and their performance is measured at the same level. Financing is managed centrally by the Group. Consequently, liquid funds, interest-bearing receivables and liabilities are not allocated to the business segments.
                 
        Assets   Liabilities
(SEK million)       2009 2008   2009 2008
Free-TV Scandinavia       1,784 1,545   1,545 1,490
Pay-TV Nordic       2,085 2,134   2,683 2,167
Free-TV Emerging Markets       6,167 12,053   1,021 1,003
Pay-TV Emerging Markets       339 440   198 229
Associated company CTC Media       1,757 1,886   - -
Others and eliminations       406 919   -887 -61
Total Viasat Broadcasting business area       12,537 18,977   4,560 4,828
Radio       1,015 919   385 411
Online       647 824   605 550
Modern Studios       138 301   157 240
Parent company and other companies       949 1,060   963 1,257
Total       15,286 22,081   6,670 7,286
                 
Eliminations       -1,591 -4,043   -1,591 -4,043
Unallocated assets/liabilities       956 1,194   3,893 7,009
Total       14,651 19,232   8,971 10,252
                 
      Capital expenditure   Depreciation and amortisation
(SEK million)       2009 2008   2009 2008
Free-TV Scandinavia       16 22   31 29
Pay-TV Nordic       27 43   10 17
Free-TV Emerging Markets       58 41   145 52
Pay-TV Emerging Markets       2 3   1 1
Others       33 23   15 7
Viasat Broadcasting       136 133   202 105
Radio       13 5   19 17
Online       8 2   11 12
Modern Studios       0 5   2 3
Parent company and other companies       1 11   3 3
Total       159 156   236 141
                 
The Group's business segments operate mainly in Europe. Net sales, assets, capital expenditure and depreciation are shown below by geographical area. Sales below are shown per country from which the revenues are derived.
      Net sales   Non-current assets
(SEK million)       2009 2008   2009 2008
Sweden       4,298 4,197   1,028 1,048
Denmark       3,439 3,073   26 27
Norway       2,567 2,322   826 745
Czech Republic       940 1,061   1,248 1,361
Bulgaria       514 232   3,525 7,104
Rest of Europe       2,392 2,271   336 449
Other regions       22 9   20 5
Total       14,173 13,166   7,008 10,738
                 
                 
           
External sales by type of product/service (SEK million):             2009 2008
Advertising revenue             5,277 5,589
Subscription revenue             5,871 5,019
Business-to-business/Consumer revenue             3,025 2,557
Total             14,173 13,166

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