MTG reports Q1 increase in sales, operating income
MTG reported record sales and a 15% growth in operating income – despite making investments into content digital expansion – in its Q1 earnings report.
In its interim report for the period January to March, MTG reported an 11% year-on-year increase in net sales to SEK4.228 billion. This represented organic growth of 8% and a 2% positive currency effect due to the appreciation of the Euro and the Danish and Norwegian Krona.
Operating income was up 15% year-on-year to SEK183 million. However, net income was down slightly at SEK118 million, compared to SEK119 million a year earlier.
“This was the third consecutive quarter with organic sales growth of more than 5%, which demonstrates that we have more relevant products available to more customers than ever before,” said MTG president and CEO, Jørgen Madsen Lindemann.
“Our operating profit was up 15% in Q1 due to a combination of organic growth and cost transformation. These are exciting times at MTG with many opportunities, which is why we are more focused than ever on capital allocation.”
During the first quarter, MTG signed an agreement to sell its 50% Czech TV holding in FTV Prima Holding to Denemo Media. It also agreed to sell its free TV, pay TV, digital and radio businesses in the Baltic region to Providence Equity Partners.
The company said it will use the proceeds of these sales to invest in its Nordic entertainment products, its digital arm MTGx, and to increase its ownership in online games developer InnoGames to 51%.
“The steps that we have taken to capitalise on the consumer trends in digital entertainment and become a relevant player for the future present a number of opportunities, which is why we are more focused than ever on capital allocation,” said Lindemann.