Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international entertainment broadcasting group, today announced that it has signed an agreement to acquire all of the remaining shares in the Danish 50/50 joint venture company TV 2 Sport A/S (‘TV 2 Sport’) from TV 2 DANMARK A/S. The payment will comprise an undisclosed cash consideration and the transfer of the exclusive Danish broadcasting rights to the European Handball Championships for 2016 and 2018, which are currently held by the Group. The transaction is subject to regulatory approval by Danish Competition Authorities.
TV 2 Sport was launched in April 2007 by MTG and TV 2 in Denmark, as a 50/50 joint venture company, and broadcasts the premium sports channel TV 2 Sport, TV 2 Sport HD, and the TV 2 Sport Premier League dedicated Barclays Premier League channel. It is operated on an independent basis from both MTG and TV 2 in Denmark, and offers a wide range of premium sports content, including football from Superligaen, Barclays Premier League, UEFA Champions League, and the UEFA World Cup qualifiers; American football from NFL; the Danish men’s and women’s Handball championships; ice hockey from the NHL and the Danish league; and a wide range of tennis, cycling and golf, as well as a range of other sports rights.
TV 2 Sport reported revenues of DKK 348 million for the full year 2011, with an operating profit (EBIT) of DKK 17 million.
Upon completion of the transaction, MTG will assume full operational control of TV 2 Sport, and consolidate its results in its accounts. MTG’s proportion of TV 2 Sport’s results is currently reported within the Viasat Broadcasting business area, as part of the Viasat Broadcasting central operations & eliminations line.