Modern Times Group MTG AB is the Group’s parent company and is responsible for Group-wide management, administration and finance functions. MTG’s financial policy includes providing a central cash pool or financing through internal loans to support the operating companies.
The MTG parent company reported net sales of SEK 41 (52) million for the full year. Net interest and other financial items totalled SEK 543 (1,259) million, and included SEK 73 (1,305) million of dividends received from subsidiaries. Income before tax amounted to SEK 368 (1,107) million. The parent company had cash and cash equivalents of SEK 136 (536) million at the end of the period. SEK 3,900 million of the SEK 6,600 million total available credit facilities, including the SEK 100 million overdraft facility, was unutilised at the end of the reporting period.
Environmental impact The Company does not own or operate any businesses in Sweden, subject to an obligation to report to authorities or require compulsory licensing, but MTG chooses, on a voluntary basis, to report our environmental impact for travel and offices in our Modern Responsibility Report.
Proposed appropriation of earnings The following funds are at the disposal of the shareholders as at 31 December 2010 (SEK):
|Fair value reserve
|Net profit for 2010
The Board of Directors propose that a SEK 7.50 dividend per share be paid to shareholders for the twelve months ended 31 December 2010 and that the remaining amount be carried forward, of which SEK 267 million to the premium reserve, SEK -93 million to the fair value reserve. The total proposed dividend payment would amount to a maximum of SEK 501,017,168, based on the maximum potential number of outstanding shares as at the record date, and represent 29% of the Group’s normalised reported net income for the full year 2010.
The Board of Directors will also propose that the Annual General Meeting authorises the Board of Directors to resolve to buy back MTG Class A and Class B shares on one or more occasions for the period up until the Annual General Meeting in 2012, but not exceeding 10% of the number of issued shares. The proposal aims to create flexibility in the work with the company’s capital structure.