MTG boosted by Viaplay, eSports

Modern Times Group (MTG)’s on-demand service Viaplay and investments in eSports and MCN businesses are helping the Scandi company recover from a turbulent 12 months.

Jørgen Madsen Lindemann

MTG shed 300 jobs across Sweden, Norway, Denmark and the UK as part of a restructure last year and has also been hit by advertising regulations and falling revenues in Russia.

It is being forced to sell its 37.9% stake in Russia’s CTC Media after changes to ownership laws in the country and has also sold networks in Sweden and Hungary.

The firm has also been shifting its focus from linear to digital, investing in multichannel networks including Splay and Zoomin.TV and rolling out Viaplay across Eastern Europe.

Jørgen Madsen Lindemann, MTG’s president and CEO, said recent results suggested the strategy was working, with the company recording operating income of SEK434m (US$50.72m) in the fourth quarter, down from SEK478m on the same period last year.

Lindemann said the firm had “transformed” in 2015 “as part of our journey from a traditional broadcaster to a broad-based digital entertainment company.”

He added that MTG was investing in sports, series and movies, with Viaplay performing “above expectations.” MTG’s eSports and MCN investments have generated “a near doubling of full-year revenues to almost SEK1bn on a pro forma basis,” he noted.

“Our performance during 2015 clearly demonstrates that the transformation is working,” said Lindemann. “Our products have never been stronger and we aim to grow both our sales and profits in 2016.”