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Viaplay Group
Annual Report • Feb 4, 2020
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Annual Report
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Full year report January-December
Q4 2019 highlights
- Viaplay subscribers up 310k from Q418 and 110k from Q319 to a total of 1,568k. Viaplay now represents 62% of the Group's total subscriber base
- Sales of SEK 4,169m (3,959) with 4% organic growth
- · Operating income for combined business segments of SEK 593m (557)
- · Total operating income of SEK -217m (516) including additional SEK 11m of advisory costs for the merger between Viasat Consumer and Canal Digital, as well as IAC of SEK -731m (5) comprising redundancy costs and impairment charges
- · Net income of SEK -159m (477) and basic earnings per share of SEK -2.36 (7.12)
- Total net debt of SEK 4,139m, including net lease liabilities of SEK 598m, equivalent to 2.2x 12 month trailing EBITDA before IAC"
- · The Board proposes a dividend of SEK 7.00 (6.50) per share, to be paid in two equal tranches
Financial overview
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 | Q4 2018 | 2019 | 2018 |
| Net sales | 4,169 | 3,959 | 15,671 | 14,568 |
| Organic growth | 4.4% | 3.7% | 6.4% | 3.8% |
| Change in reported net sales | 5.3% | 6.4% | 7.6% | 6.4% |
| Operating income - Business segments21 | 593 | 557 | 1813 | 1,706 |
| Central operations | -79 | -47 | -268 | -162 |
| Operating income before IAC | 513 | 511 | 1,545 | 1,544 |
| ltems affecting comparability (IAC) | -731 | 5 | -787 | -40 |
| Operating income | -217 | રી(રેસ્તિ) રીકે | 758 | 1,504 |
| Operating margin before IAC | 12.3% | 129% | 99% | 10.6% |
| Operating margin | -5.2% | 13.0% | 4.8% | 10.3% |
| Net income | -159 | 477 | 590 | 1,292 |
| Basic earnings per share (SEK) | -2.36 | 7.12 | 8.77 | 19.24 |
| Net debt | 4,139 | 3,944 | 4,139 | 3,944 |
l) 2018 figures included in the calculation of trailing 12 months EBTDA before IAC have been adjusted for the estimated effect as if FFS 16 had been applied for the full period.
2) See page 17 for a reconciliation of business segment operating income. Alternative performance measures used in this report are explained and reconciled on pages 20-23.
Reading notes: The information in this report consists of the combined financial statements for Nordic Entertainment Group AB (publ) (NENT Group), which are an aggreagtion of financial information for entitles under common control that do not meet the definition of a group according to IFRS 10. Pro formation is not provided for historical periods. The cost for central operations is not comparable over time as the parent company, Nordic Entertainment Group AB (publ), was only established on I July 2018. The net debt of NENT Group for 2018 in this report refers to the net funding from previous parent company Modern Times Group MTG AB (publ) in the cash pool, less total cash. NENT Group has applied the new accounting standard IFRS 16 Leases from 1 January 2019. See Accounting policies on page 10 for more information
President & CEO's comments
"Q4 was a strong finish to a successful first year as listed company. We have delivered on our profitable growth commitment in 2019 with 6% organic sales growth and 6% profit growth for our operating businesses, while growing our Viaplay subscriber base by over 25%. Scaling Viaplay remains our top priority simply because it's the best way to drive sustainable long term value. We have continued to innovate and transform, and remain well positioned to benefit from the shift to on-demand and online video consumption."
2019 was a record breaking first year for NENT Group as a standalone business, with strong financial performances by both of our business segments. The momentum continued into Q4 with sales growing 4% on an organic basis and driven primarily by Viaplay. Broadcasting & Streaming delivered continued profitable growth, and the combined profits for our business segments also increased despite ongoing content investments, USD headwinds and falling linear viewing.
We have now implemented our new organisation and operating model, which will enable us to make decisions faster, ensure better strategic alignment, scale flexibly and efficiently, while also generating significant savings. We also announced the proposed 50/50 joint venture between Viasat Consumer and Canal Digital, which is expected to yield substantial synergies and further increase our focus on Viaplay, including the first geographical expansion this year when we launch Viaplay in Iceland later this spring. Our recently announced strategic review of our studios businesses is yet another example of our never-ending quest to optimise our operations to support our streaming ambitions.
The Viaplay subscriber intake is our single most important KPI, as this is where consumers are spending more and more of their time and money. We added 110k Viaplay subscribers
compared to Q3 and the base has grown by 310k, or 25%, since the beginning of 2019. Our growth has accelerated and we have gained market share, despite fierce competition. Viaplay is a content champion, offering a unique combination of the broadest and most relevant content, as well as clear category leadership in sports, Nordic originals and films. This is combined with a world-class technology platform that is constantly evolving to enhance the customer experience.
We have continued to invest in our future. We premiered 21 high quality Viaplay Originals in 2019 and will premiere more than 30 in 2020. The majority of these are locally relevant Nordic shows, which are very popular and provide a clear differentiator to rival international services. We have signed a number of new or extended exclusive sports rights agreements. Sports rights are in high demand and we are very conscious not to accept any inflation that would harm our ability to grow profitably. We have improved our kids offering through new deals with NBCUniversal and SF Studios, and signed a new long term agreement with Sony. And our sourcing of original international content will be fueled by our investments in FilmNation UK and PictureStart.
Looking ahead, we have built a very strong foundation to capture the opportunity we see in the streaming world, while also delivering on our profitable growth commitment. 2020 will be another eventful year, in which we will focus on further scaling Viaplay, continue to invest in our content, technology and people, and support this with our relentless search for efficiencies. All credit for the success in 2019 goes to the NENT team members; Your passion, competence and drive are what makes NENT a winner.
Anders Jensen President & CEO
Significant events in and after the quarter
17 October - NENT Group acquired exclusive Nordic rights to IIHF Ice Hockey World Championship from 2024 to 2028
NENT Group acquired the exclusive Nordic media rights to the IIHF Ice Hockey World Championship from 2024 to 2028. NENT Group already shows the tournament in Sweden until 2023 and will now expand its world class coverage of the tournament across the entire Nordic region.
22 October - NENT Group and Telenor agreed to merge Viasat Consumer and Canal Digital
NENT Group entered into an agreement with Telenor to combine its Viasat Consumer (satellite pay-TV and broadband-TV operations) with Canal Digital (satellite pay-TV). The combination would result in the parties each holding 50 percent of the shares of the new joint venture company and is expected to create substantial synergies and shareholder value, as well as provide an enhanced proposition for customers. The combination is subject to regulatory approvals and expected to be completed during the first half of 2020.
30 October - NENT Group expanded RiksTV distribution partnership in Norway
NENT Group and Norwegian TV operator RiksTV agreed an extended long-term distribution deal that brings NENT Group's Viaplay streaming service and TV channels to more viewers in Norway than ever before. From autumn 2019, Viaplay became available as part of RiksTV's Strim streaming offering, which also includes NENT Group's TV3, TV6 and Viasat 4 channels.
8 November - NENT Group extended Nordic distribution agreement with Telenor
NENT Group and Telenor extended their long-term distribution agreement. The agreement spans Telenor's fixed line and satellite TV offerings, and sees NENT Group's Viaplay streaming service, free TV channels and Viasat pay TV channels offered to Telenor customers.
14 November - NENT Group launched BEAT Diabetes initiative and foundation
NENT Group announced the launch of BEAT Diabetes, a long-term, pan-Nordic initiative to respond to the global diabetes challenge. NENT Group will also launch the BEAT Diabetes Foundation, an independent entity into which NENT Group will invest at least SEK 2.5m every year from 2020, in order to raise awareness and funding levels for those living with Type I and Type II diabetes.
10 December - NENT Group to make annual savings and write down assets
NENT Group announced that its shift to a new operating model has led to a reduction in its overall workforce. NENT Group has simultaneously undertaken a review of its content-related agreements and investments, which has resulted in the decision to write down the value of certain free-TV content and other assets. The total charge, comprising redundancy costs and impairment charges, is estimated to approximately SEK 731m and was taken as an Item Affecting Comparability Q4 2019. The cashflow impact of the charge is expected to be approximately SEK 250m of which SEK 34m was taken in Q4 2019. The personnel savings are expected to be approximately SEK 250m, with the majority impacting in 2020. This will enable NENT Group to offset USD headwinds and allow for continued investments in the expansion of Viaplay.
19 December - NENT Group extends exclusive UFC rights
NENT Group and UFC, the world's premier MMA organisation, have agreed on an extension of NENT Group's exclusive Nordic UFC media rights in a multi-year agreement. UFC events will continue to be shown live on NENT Group's Viaplay streaming service, with selected events available on NENT Group's free-TV channels and through pay-per-view.
20 December - NENT Group and NBCUniversal finalise kids content partnership
NENT Group signed an agreement with NBCUniversal that secured a wide range of popular kids and family content from NBCUniversal for NENT Group's Viaplay streaming service and Viasat pay-TV channels.
24 January - NENT Group agrees new kids content partnership with SF Studios
NENT Group has agreed a new kids content partnership with Nordic film studio SF Studios. As a result, more than 500 additional episodes of high-quality Nordic and international kids series from SF Studios, as well as selected films, will be added to NENT Group's Viaplay streaming service during 2020. Viaplay is already home to more than 1,200 episodes of kids content from SF Studios, and the new deal will increase this number to 1,800 episodes.
29 January - NENT Group reorganising NENT Studios to further focus on scripted drama and international ambitions
NENT Group is reorganising NENT Studios – its content production and distribution business that comprises 32 companies in 17 countries — into a new organisation focused on scripted drama production, both series and movies, and distribution. As part of the reorganisation, the non-scripted production, branded entertainment and events businesses will be divested. NENT Group also intends to bring a minority equity partner into its scripted drama production business, in order to the further development of the output and operations.
3 February - NENT Group and Sony Pictures Television extend exclusive content partnership
NENT Group has extended its long-term content partnership with Sony Pictures Television in a multiyear deal. Viewers of NENT Group's Viaplay streaming service and Viasat pay-TV channels will remain the first in the Nordic region to see the latest films and series from Sony Pictures Entertainment (SPE), while continuing to enjoy an extensive range of popular library titles. A broad selection of SPE content will also be available on NENT Group's free-TV channels across Scandinavia. Furthermore, the parties have entered into a collaboration to co-develop and co-produce up to six Viaplay original scripted series.
A full list of announcements and reports can be found at www.nentgroup.com.
Group performance
Net sales
Net sales were up 5% to SEK 4,169m (3,959) following 4% organic growth and a 1% FX contribution.
Operating income and items affecting comparability
Operating income for the combined business segments increased by 6% to SEK 593m (557). Operating income before IAC amounted to SEK 513m (511) as higher profits in the operating segments were offset by higher central operation costs. The increase in central operation costs included advisory costs of SEK 11m related to the proposed Viasat Consumer / Canal Digital combination.
ltems affecting comparability amounted to SEK -731m (5) and reflected SEK 190m of restructuring and redundancy costs as well as an write downs of SEK 541m relating to free-TV content and other assets that have limited remaining value. See page 21 for a comprehensive list of items affecting comparability.
Net financials and net income
Net sales and operating income
Net interest and other financial items totaled SEK -30m (-47). Net interest amounted to SEK -12 (-5), of which SEK -4m (0) related to the interest on net lease liabilities. Other financial items amounted to SEK -18m (-42) and mainly comprised the impact of exchange rate differences on financial items.
Tax amounted to SEK 89m (8) due to the losses in the quarter and net income totaled SEK -159 (477), with basic earnings per share of SEK -2.36 (7.12).
Net sales and operating income Rolling twelve months (SEKm)
Segmental performance
Broadcasting & Streaming
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 | Q4 2018 | 2019 | 2018 |
| Net sales | 3,686 | 3,403 | 13,697 | 12,800 |
| of which advertising | 1,159 | 1,171 | 4,005 | 4,017 |
| of which subscription & other | 2,527 | 2,232 | 9,691 | 8,783 |
| Operating expenses | -3,126 | -2,872 | -11,966 | -11,139 |
| Operating income | 560 | 532 | 1,731 | 1,661 |
| Operating margin | 15.2% | 15.6% | 12.6% | 13.0% |
| Net sales growth | 8.3% | 5.4% | 7.0% | 7.0% |
| Organic growth | 7.5% | 3.0% | 6.0% | 4.5% |
| Acquisitions/divestments | ||||
| Changes in FX rates | 0.8% | 2.4% | 1.0% | 2.5% |
Sales were up 8% on an organic basis and driven primarily by the continued growth of Viaplay. Operating expenses were also up and reflected the ongoing investments in content as well as the depreciation of the Swedish krona. Operating income amounted to SEK 560m (532), with an operating margin of 15.2% (15.6).
Net sales and operating income (SEKm)
Net sales and operating income
Advertising
Advertising sales were down 1% on a reported basis. TV advertising sales were down slightly as higher prices were offset by lower linear TV viewing levels, as well as soft advertising markets. NENT Group's TV audience shares was up in Denmark but down in Sweden and Norway. TV advertising markets are each estimated to have declined in all three markets. Radio sales were stable in Sweden but down in Norway with both markets estimated to have declined. The Swedish radio audience share was up compared to last year while the Norwegian share was down.
Subscription & other
Subscription & other sales were up 13% on a reported basis and driven by the Viaplay subscriber intake, Swedish broadband-TV sales and content sublicensing deals. The total subscriber base was up y-o-y (year on year) and q-o-q (quarter on quarter). Viaplay added 110k customers q-o-q and 310k y-o-y to end the period with 1,568k subscribers. Viaplay now represents 62% (57) of the total subscriber base. The Viasat direct-to-consumer subscriber base was broadly stable q-o-q at 489k as continued growth in the broadband-TV base was offset by the decline in the satellite base. The third party subscriber base grew by 18k q-o-q to 469k.
Total subscriber base (thousands)
Viaplay subscriber base (thousands)
NENT Studios
| (SEKm) | Q4 2019 | Q4 2018 | Full year 2019 |
Full year 2018 |
|---|---|---|---|---|
| Net sales | 540 | ୧୦3 | 2,284 | 1,911 |
| Operating expenses | -507 | -577 | -2,202 | -1,866 |
| Operating income | 33 | 26 | 82 | 45 |
| Operating margin | 6.1% | 4.3% | 3.6% | 2.4% |
| Net sales growth | -10.5% | 7.6% | 19.5% | -3.8% |
| Organic growth | -11.5% | 3.6% | 17.7% | -7.3% |
| Acquisitions/divestments | 0.1% | |||
| Changes in FX rates | 1.1% | 3.9% | 1.8% | 3.4% |
Sales were down 12% on an organic basis, primarily as a result of timing differences in the production schedule with several projects being postponed into 2020.
Operating income increased to SEK 33m (26), with an operating margin of 6.1% (4.3) and included strategic investments into the US.
Net sales and operating income
Rolling twelve months (SEKm)
Financial position
Cash flow
Cash flow from operations
Cash flow from operations before changes in working capital amounted to SEK 443 (551). Depreciation, amortisation and write-downs charges totalled SEK 621m (59). The Group reported a SEK 253m (179) change in working capital, which was in line with the normal seasonal patterns. Net cash flow from operations totalled SEK 695m (730).
Investing activities
Capital expenditure on tangible and intangible assets totalled SEK -52m (-50). Other investing activities totalled SEK 6m (24). Total cash flow related to investing activities therefore amounted to SEK -46m (-27).
Financing activities
Cash flow from financing activities amounted to SEK -290m (-422) and included the SEK 219m payment of the second instalment of the dividend. Short-term borrowings were repaid by -30m (0).
The net change in cash and cash equivalents amounted to SEK 359m (281), and the Group had cash and cash equivalents of SEK 1,238m (428) at the end of the period.
Net debt
The Group's total net debt position amounted to SEK 4,139m (3,944) at the end of the period. Net debt comprised of financial net debt of SEK 3,542m (3,944) including cash and cash equivalents SEK 1,238m (428) and net of lease liabilities and sublease receivables of SEK 598m (N/A),
Related party transactions
The Group has related party relationships with its subsidiaries, associated companies and joint ventures. Transactions with those companies consist mainly of advertising sales and programming acquisitions. All related party transactions are based on market terms and negotiated on an arm's length basis.
Parent company
Nordic Entertainment Group AB is the Group's parent company and is responsible for Group-wide management, administration and financing. The company was established during June 2018.
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 | Q4 2018 | 2019 | 2018 |
| Net sales | 21 | -2 | 43 | |
| Net interest and other financial items | 20 | O | 48 | |
| Income before tax and appropriations | -37 | -46 - | -210 | -124 |
Other information
Financial targets
NENT Group does not provide formal financial performance targets or guidance. NENT Group's objective is to deliver sustainable growth in the form of organic sales growth and growth in operating income before items affecting comparability.
NENT Group intends to maintain its balance sheet leverage ratio of no more than 2.5x net debt to trailing twelve month adjusted EBITDA. NENT Group's leverage may exceed these levels temporarily from time to time, in order to finance acquisitions or due to short term effects such as the scheduling of content payments.
NENT Group's dividend policy is to distribute an annual cash dividend of between 30% and 50% of adjusted net income.
Accounting policies
This Interim report has been prepared according to 'IAS 34 Interim Financial Reporting' and 'The Annual Accounts Act. The interim report for the parent company has been prepared according to the Annual Accounts Act - Chapter 9 `Interim Report´.
The formation of Nordic Entertainment Group AB (NENT Group) involved transactions between entities that are under common control. Since these transactions are not covered by any IFRS standard, a suitable and established method in accordance with IAS 8, is to use the previous carrying amounts, which is the principle NENT Group has used. The assets and liabilities have been aggregated and recognised based on the carrying amounts they represented in the former parent company MTG AB's consolidated financial statements as from the date they became part of MTG.
The Group's financial accounts and the parent company accounts have been prepared according to the same accounting policies and calculation methods as were applied in the listing prospectus except for the new standard IFRS 16 Leases that has been applied since 1 January 2019.
Impact from IFRS 16 Leases
A new standard for lease accounting - IFRS 16 Leases - has been introduced with effect from 1 January 2019. The main changes are the following: For the classification according to IAS 17 of operating and finance leases is replaced by a single lease accounting model. All leases are recognised on the balance sheet as a right-of-use asset and lease liability. Leases of low value assets, as well as leases of 12 months or less, are exempt from the requirements. A substantial part of the London offices are subleased and a financial receivable is recognised in accordance with the standard. The expense for operating leases is replaced by depreciation on the right-of-use asset, and interest expense on the lease liability and interest income on the sublease. The depreciation of lease assets is separately recognised from the interest on lease liabilities in the income statement. This has increased the operating income at the expense of the financial net. The Group has identified the following categories of leases: offices, cars and car parks. Studio equipment is normally leased on a short-term basis, and most types of leased office furniture and IT equipment are of low value and are therefore out of scope. NENT Group has applied the modified retrospective method, which implies no restatements of previous periods. A right-of-use asset amounting to SEK 566m and a receivable related to subleases amounting to SEK 225m are recognised in the 31 December balance sheet. A leasing obligation amounting to SEK 823m is also recognised. The lease obligation and the sublease receivables have been included in the total net debt calculation. The following table illustrates the effects of the new standard on the Q4 financial statement and key ratios.
| Full year | Full year | ||
|---|---|---|---|
| 2019 without | lmpact | 2019 with | |
| (SEKm, %) | IFRS 16 | IFRS 16 | IFRS 16 |
| Operating income | 740 | 18 | 758 |
| IAC | -787 | -787 | |
| Operating income before IAC | 1,527 | 18 | 1,545 |
| Amortisation and depreciation | 235 | 101 | 336 |
| EBITDA | 1,762 | 119 | 1,881 |
| Financial net | -28 | -18 | -46 |
| Operating margin before IAC (%) | 97% | 0.2% | 99% |
| Operating margin (%) | 47% | 0.1% | 4.8% |
| Right of use assets | 566 | રુદર્ભ | |
| Sublease receivables | 225 | 225 | |
| Total assets related to leasing | - | 791 | 791 |
| Right of use assets | ર્ટફર્ | 566 | |
| Capital employed related to leasing | રેણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામમાં પ્રાથમિક શાળા, આંગણવાડી તેમ જ દૂધની ડેરી જેવી સ | રેણવે સ્વિક | |
| Lease liability | - | 823 | 823 |
| Sublease recievables | 225 | 225 | |
| Net debt related to leasing | 598 | 598 | |
| Total assets Capital employed |
13,906 5,015 |
791 566 |
14,697 5,581 |
| Net debt | 3,541 | 598 | 4,139 |
Significant risks and uncertainties exist for the Group and the parent company. These factors include the prevailing economic and business environments in some of the markets; commercial risks related to expansion into new territories; other political and legislative risks related to changes in rules and regulations in the various territories in which the Group operates; exposure to foreign exchange rate movements and the US dollar and Euro linked currencies in particular; and the emergence of new technologies and competitors. The increasing shift towards online viewing could also potentially make the Group a target for cyber-attacks, intrusions, disruptions or denials of service.
Risks also exist in relation to the UK's plans to leave the EU, which may result in the Group having to relocate its broadcast and streaming licences from the UK and could lead to adverse financial, legal and social consequences. There is a risk that new licenses in the UK or other territories would not be issued on the same terms as existing licenses or be stricter in terms of regulation.
Risks and uncertainties are also described in the prospectus "Admission to trading of shares in Nordic Entertainment Group AB (pub) on Nasdaq Stockholm", which is available at www.nentgroup.com.
Stockholm, 4 February 2020
Anders Jensen President & CEO
This report has not been reviewed by the Group's auditors.
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 | Q4 2018 | 2019" | 2018 |
| Net sales | 4,169 | 3,959 | 15,671 | 14,568 |
| Cost of goods and services | -2,726 | -2,634 | -10,616 | -9,805 |
| Gross income | 1,443 | 1,325 | 5,055 | 4,763 |
| Selling expenses | -283 | -213 | -1,047 | -857 |
| Administrative expenses | -727 | -609 | -2,598 | -2,387 |
| Other operating income | 95 | 17 | 162 | 44 |
| Other operating expenses | -17 | -7 | -32 | -17 |
| Share of earnings in associated companies and joint ventures | 2 | -1 | 5 | -3 |
| ltems affecting comparability | -731 | 5 | -787 | -40 |
| Operating income | -217 | રાજ | 758 | 1,504 |
| Interest income | 2 | 5 | 11 | 11 |
| Interest expenses | -10 | -10 | -30 | -48 |
| Leasing net interest | -4 | -18 | ||
| Other financial items | - 8 | -42 | -9 | -15 |
| Income before tax | -247 | 469 | 72 | 1,452 |
| Tax | 89 | 8 | -122 | -160 |
| Net income for the period | -159 | 477 | 590 | 1,292 |
| ITEMS THAT ARE OR MAY BE RECLASSIFIED TO | ||||
| PROFIT OR LOSS NET OF TAX | ||||
| Currency translation differences | -46 | -39 | 52 | 46 |
| Cash flow hedge | -85 | -9 | 13 | 68 |
| Other comprehensive income for the period | -131 | -48 | 65 | 14 |
| I otal comprehensive income for the period | -290 | 429 | 655 | 1,406 |
| NET INCOME FOR THE PERIOD ATTRIBUTABLE TO | ||||
| Equity holders of the parent company | -159 | 470 | 589 | 1,286 |
| Non-controlling interest | 7 | - | 6 | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO | ||||
| Equity holders of the parent company | -290 | 422 | 654 | 1,400 |
| Non-controlling interest | 7 | 1 | 6 | |
| EARNINGS PER SHARE | ||||
| Basic earnings per share (SEK) | -2.36 | 7.12 | 8.77 | 19.24 |
| Diluted earnings per share (SEK) | -2.35 | 7.08 | 8.74 | 19.09 |
| NUMBER OF SHARES2) | ||||
| Shares outstanding at the end of the period | 67,342,244 | 66,980,902 | 67,342,244 | 66,980,902 |
| Basic average number of shares outstanding | 67,342,244 | 66,980,902 | 67.279.875 | 66,854,133 |
| Diluted average number of shares outstanding | 67,574,801 | 67,317,949 | 67,484,565 | 67,362,405 |
I) Reported values for Q1 2019 have been restated by SEK 26m between Cost of goods and services and Administrative costs compared to Interim report January-March 2019.
2) Number of shares in 2018 refers to MTG's number of shares.
Consolidated balance sheet
| 3 Dec | 31 Dec | |
|---|---|---|
| (SEKm) | 2019 | 2018 |
| NON-CURRENT ASSETS | ||
| Intangible assets | 3,384 | 3,405 |
| Machinery, equipment and installations | 165 | 152 |
| Right-of-use assets | 566 | |
| Shares and participations | 142 | 20 |
| Sublease receivables | 192 | |
| Other long-term receivables | 171 | 127 |
| Total non-current assets | 4,621 | 3,704 |
| CURRENT ASSETS | ||
| nventories | 2,551 | 2,428 |
| Accounts receivables | 1,112 | 1,224 |
| Sublease receivables | 34 | |
| Prepaid expense and accrued income | 4,609 | 3,951 |
| Other current assets | 532 | 467 |
| Cash, cash equivalents and short-term investments | 1,238 | 428 |
| Total current assets | 10,077 | 8,498 |
| Total assets | 14,697 | 12,202 |
| EQUITY | ||
| Equity™ | 1.434 | 581 |
| Non-controlling interest | 7 | 16 |
| Total equity | 1,442 | 597 |
| NON-CURRENT LIABILITIES | ||
| Long-term borrowings" | 1,800 | |
| Long-term lease liabilities | 691 | |
| Long-term provisions | 275 | 171 |
| Other non-current liabilities | 316 | 324 |
| Total non-current liabilities | 3,082 | 495 |
| CURRENT LIABILITIES | ||
| Short-term borrowings1) | 2,980 | |
| Short-term lease liabilities | 132 | |
| Short-term provisions | 139 | 138 |
| Liabilities related to MTG13 | 4,373 | |
| Other current liabilities | 6,923 | 6,598 |
| Total current liabilities | 10,174 | 11,110 |
| Total liabilities | 13,256 | 11,605 |
| I otal shareholders' equity and liabilities | 14,697 | 12,202 |
l) The find capitation of the NENT Group took place before included the replacement of lidsities to MTG with external debt and a capital injection.
Consolidated statement of cash flow
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 | Q4 2018 | 2019 | 2018 |
| Net income for the period | -158 | 477 | 590 | 1.292 |
| Depreciations, amortisations and write-downs | 621 | ಕ್ಕಾ | 867 | 208 |
| Other adjustments for non-cash items | -21 | 14 | -64 | -5 |
| Cash flow from operations | 443 | 551 | 1,393 | 1,496 |
| Changes in working capital | 253 | 179 | -791 | -380 |
| Net cash flow from/to operations | રેજેટ | 730 | 602 | 1,116 |
| Acquisitions of operations | -15 | -19 | ||
| Divestments of operations | ||||
| Capital expenditures in tangible and intangible assets | -52 | -50 | -176 | -550 |
| Other investing activities | 6 | 24 | -99 | 2 |
| Cash flow from/used in investing activities | -46 | -27 | -290 | -567 |
| New long-term borrowings | 2.300 | |||
| Change in short term borrowings | -30 | 2,480 | ||
| Amortisation of lease receivables | 0 | 33 | ||
| Amortisation of lease liabilities | -32 | -121 | ||
| Change in financing to/from MTG | 2,945 | -4,474 | 3,171 | |
| Shareholders' contribution | 620 | |||
| Dividends to shareholders | -219 | -3,278 | -438 | -3,310 |
| Other cash flow from/to financing activities | -18 | -89 | 75 | -70 |
| Cash flow from/used in financing activities | -290 | -422 | 475 | -209 |
| Total net change in cash and cash equivalents for the period | 359 | 281 | 787 | 339 |
| Cash and cash equivalents at the beginning of the period | 889 | 146 | 428 | 89 |
| Translation differences in cash and cash equivalents | -9 | 23 | ||
| Cash and cash equivalents at end of the period | 1,238 | 428 | 1,238 | 428 |
Consolidated statement of change in equity
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 | Q4 2018 | 2019 | 2018 |
| Opening balance | 1,735 | 5.473 | 597 | 2,573 |
| Net income for the period | -159 | 477 | 590 | 1,292 |
| Other comprehensive income for the period | -131 | -48 | 65 | 14 |
| Total comprehensive income for the period | -290 | 429 | 655 | 1,406 |
| Effect of employee share programmes | 4 | 3 | 15 | 20 |
| Change in non-controlling interests | - | |||
| Shareholders' contribution | 620 | 2.000 | ||
| Dividends | -438 | |||
| Other transactions with shareholders | -5.306 | -5.400 | ||
| Closing balance | 1.442 | 597 | 1.442 | 597 |
Parent company income statement
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 | Q4 2018 | 2019 | 2018 |
| Net sales | 21 | -2 | 43 | |
| Gross income | 21 | -2 | 43 | |
| Administrative expenses | 73 | -65 | -252 | -145 |
| Other operating income | 15 | 15 | ||
| Other operating expenses | ||||
| Items affecting comparability | -7 | - | -48 | |
| Operating income | -57 | -52 | -258 | -130 |
| Net interest and other financial items | 20 | 6 | 48 | 0 |
| Income before tax and appropriations | -37 | -46 | -210 | -124 |
| Group contribution | 597 | 124 | 597 | 124 |
| Income before tax | 560 | 78 | 387 | |
| Tax | -112 | -17 | -75 | |
| Net income for the period | 448 | 61 | 312 |
Parent company condensed balance sheet
| Bl Dec | 31 Dec | |
|---|---|---|
| (SEKm) | 2019 | 2018 |
| NON-CURRENT ASSETS | ||
| Intanaible assets | ||
| Financial assets | 113 | |
| Total non-current assets | 113 | - |
| CURRENT ASSETS | ||
| Receivables from group companies | 10.831 | 13.056 |
| Other current receivables | 88 | 267 |
| Cash, cash equivalents and short-term investments | 974 | |
| Total current assets | 11,893 | 13,326 |
| Total assets | 12,006 | 13,627 |
| SHAREHOLDERS' EQUITY | ||
| Restricted equity | 135 | |
| Non-restricted equity | 1,759 | 2,007 |
| Total equity | 1,894 | 2,008 |
| NON-CURRENT LIABILITIES | ||
| Long-term borrowings | 1,800 | |
| Total non-current liabilities | 1,800 | |
| CURRENT LIABILITIES | ||
| Short-term borrowings | 2,980 | 73 |
| Liabiltities to group companies | 5.083 | 11.201 |
| Other current liabilities | 249 | 45 |
| Total current liabilities | 8,312 | 11,319 |
| Total shareholders' equity and liabilities | 12,006 | 13,327 |
Net sales - external & internal
| 01 | 02 | 6 | 04 | T | 01 | Q2 | C | 04 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2019 |
| Broadcasting & Streaming | 3.118 | 3.290 | 2.981 | 3.394 | 12.785 | 3.322 | 3.422 | 3.223 | 3.672 | 13.639 |
| Studios | 329 | 423 | 455 | 562 | 1769 | 404 | 552 | 577 | 497 | 2,030 |
| Central operations | 2 | 5 | 3 | 13 | ||||||
| Total sales external customers | 3,452 | 3.719 | 3,439 | 3,959 | 14.568 | 3,727 | 3,975 | 3,799 | 4,169 | 15,671 |
| Broadcasting & Streaming | 2 | বা | 0 | 15 | 15 | 16 | 12 | 14 | 58 | |
| Studios | 23 | દિર | 25 | 42 | 42 | 47 | 100 | 64 | 43 | 254 |
| Central operations | 23 | 18 | 10 | 10 | 16 | 19 | 18 | 24 | 77 | |
| l otal sales between segments | 47 | 72 | 39 | 69 | 228 | 78 | 135 | 94 | 81 | 389 |
Net sales by segments
| o | 02 | 03 | 04 | FY | 0 | 02 | OB | Q4 | FY | |
|---|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2019 |
| Broadcasting & streaming | 3.120 | 3.292 | 2.985 | 3.403 | 12.800 | 3.337 | 3.438 | 3.235 | 3.686 | 13.697 |
| of which advertising | 946 | 1.078 | 823 | 1.177 | 4.017 | 964 | 1.047 | 835 | 1.159 | 4.005 |
| of which subscription & other | 2.174 | 2.214 | 2.162 | 2.232 | 8.783 | 2.373 | 2.391 | 2.400 | 2.527 | 9.691 |
| Studios | 352 | 476 | 480 | 603 | 1911 | 451 | 652 | 640 | 540 | 2.284 |
| Central operations | 27 | 23 | 12 | 24 | 84 | 17 | 20 | 18 | 24 | 79 |
| Eliminations | -47 | -72 | -39 | -69 | -228 | -78 | -135 | -04 | -81 | -389 |
| Total | 3.452 | 3,719 3,439 3,959 14,568 | 3,727 | 3.975 | 3.799 | 4,169 | 15,671 |
Operating income by segment
| Q1 | Q2 | 6 | 04 | FY | Q1 | Q2 | C | Q4 | H | |
|---|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2019 |
| Broadcasting & Streaming | 310 | 498 | 321 | 532 | 1,661 | 331 | 509 | 330 | 560 | 1,731 |
| Studios | -24 | O | 34 | 26 | 45 | -14 | 26 | 37 | 33 | 82 |
| Business segments | 286 | 508 | 355 | 557 | 1,706 | 317 | રે રેણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામમાં પ્રાથમિક શાળા, પંચાયતઘર, આંગણવાડી તેમ જ દૂધન | 367 | 593 | 1,813 |
| Central operations | -16 | -44 | -56 | -47 | -162 | -43 | -80 | -65 | -79 | -268 |
| lotal operating income before IAC | 27 | 464 | 299 | 51 | 1,544 | 274 | 455 | 302 | 513 | 1,545 |
| ltems affecting comparability | -48 | 3 | 1 | -40 | -56 | -731 | -787 | |||
| lotal | 271 | 415 | 303 | 516 | 1.504 | 218 | 455 | 302 | -217 | 758 |
Group & segment performance data
| O 2018 |
02 2018 |
OR 2018 |
Q4 2018 |
FY 2018 |
0 2019 |
02 2019 |
03 2019 |
Q4 2019 |
EY 2019 |
|
|---|---|---|---|---|---|---|---|---|---|---|
| GROUP | ||||||||||
| Sales growth | 73% | 87% | 3.3% | 6.4% | 6.4% | 8.0% | 6.9% | 10.5% | 5.3% | 7.6% |
| - of which organic growth | 6.2% | 5.8% | -0.5% | 3.7% | 3.8% | 5.9% | 5.8% | 9.8% | 4.4% | 6.4% |
| - of which acquisitions/divestments | 0.1% | |||||||||
| - of which changes in FX rates | 1.1% | 29% | 3.8% | 2.8% | 2.6% | 2.1% | 11% | 0.7% | 0.9% | 1.1% |
| Operating marqin before IAC | 7.8% | 12.5% | 8.7% | 12.9% | 10.6% | 7.4% | 11.4% | 8.0% | 12.3% | 99% |
| Net debt (SEKm) | 3.944 | 4.189 | 4.148 | 4.756 | 4.139 | 4.139 | ||||
| Net debt/EBITDA 12 months trailing | 2.3 | 22 | 2.2 | 25 | 2.2 | 2.2 | ||||
| BROADCASTING & STREAMING | ||||||||||
| Organic sales growth | 6.2% | 6.9% | 2.2% | 3.0% | 3.8% | 5.2% | 3.5% | 7.7% | 7.5% | 6.0% |
| Operating marqin before IAC | 99% | 15.1% | 10.8% | 15.6% | 13.0% | 99% | 14.8% | 10.2% | 15.2% | 12.6% |
| CSOV Sweden (15-49) % | 23.1 | 239 | 23.1 | 23.6 | 23.4 | 236 | 23.3 | 24 | 229 | 23.4 |
| CSOV Norway (15-49) % | 15.1 | 159 | 13.5 | 17.7 | 15.6 | 17.0 | 16.0 | 16.1 | 17.2 | 219 |
| CSOV Denmark (15-49) % | 21.4 | 24.6 | 21.6 | 23.4 | 227 | 21.1 | 23.4 | 22.4 | 23.6 | 229 |
| CSOL Sweden (12-79) % | 38.0 | 40.4 | 428 | 419 | 409 | 45.6 | 44.8 | 476 | 42.3 | 45.1 |
| CSOL Norway (12+) % | 66.0 | 67.1 | 713 | 68.5 | 68.2 | 65.2 | 66.4 | 69.1 | 64.7 | 66.0 |
| Subscriber base ('00Us) | 2.173 | 2.130 | 2.111 | 2.218 | 2.310 | 2,377 | 2.400 | 2.526 | ||
| - of which Viaplay | 1.202 | 1.177 | 1.166 | 1.258 | 1.357 | 1.421 | 1.459 | 1.568 | ||
| - of which Viasat direct-to-consumer® | 505 | 498 | 496 | 493 | 490 | 491 | 490 | 489 | ||
| - of which Viasat 3rd party | 466 | 455 | 449 | 466 | 463 | 465 | 451 | 469 | ||
| STUDIOS | ||||||||||
| Organic sales growth | -0.6% | -10.0% | -198% | 3.6% | -7.3% | 229% | 35.0% | 32.1% | -11.5% | 17.7% |
| Operating margin before IAC | -6.8% | 19% | 7.1% | 4.3% | 24% | -3.1% | 4.0% | 5.8% | 6.1% | 3.6% |
1) Satellite and broadband subscribers where Viasat has a direct relationship with the customer
| Broadcasting | Central | |||||||
|---|---|---|---|---|---|---|---|---|
| & Streaming | Studios | operations | Total | |||||
| Q4 (SEKm) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 |
| REVENUE STREAMS | ||||||||
| Advertising | 1,159 | 1,171 | 28 | 50 | - | 1,187 | 1,220 | |
| Subscription | 2,289 | 2.152 | - | 2,289 | 2,152 | |||
| Production | 386 | 433 | - | 393 | 433 | |||
| Licenses, royalities and other | 217 | / 1 | 84 | 79 | 3 | 301 | 153 | |
| Total | 3.672 | 3,394 | 497 | 562 | 3 | 4,169 | 3,959 | |
| REVENUE RECOGNITION | ||||||||
| at a point in time | 217 | 71 | 84 | 79 | 3 | 301 | 153 | |
| over time | 3.455 | 3.323 | 413 | 483 | - | 3,868 | 3.806 | |
| Total | 3,672 | 3.394 | 497 | 562 | 3 | 4,169 | 3,959 |
| Broadcasting & Streaming |
Studios | Central operations |
Total | |||||
|---|---|---|---|---|---|---|---|---|
| Full year (SEKm) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 |
| REVENUE STREAMS | ||||||||
| Advertising | 4.005 | 4.017 | 78 | 172 | - | 4.083 | 4.189 | |
| Subscription | 8.771 | 8.272 | - | 8.771 | 8,272 | |||
| Production | 22 | 0 | 1.585 | 1.321 | 1,607 | 1,382 | ||
| Licenses, royalities and other | 841 | 438 | 368 | 276 | 2 | 13 | 1,210 | 725 |
| lotal | 13,639 | 12,785 | 2,030 | 1,769 | 2 | 13 | 15.67 | 14,568 |
| TIMING OF REVENUE RECOGNITION | ||||||||
| at a point in time | 841 | 436 | 368 | 277 | 2 | 13 | 1,210 | 726 |
| over time | 12.798 | 12.350 | 1.662 | 1.493 | - | 14,460 | 13.842 | |
| Total | 13.639 | 12.785 | 2,030 | 1.769 | 2 | 13 | 15,671 | 14.568 |
The format for the disaggregation of revenue has charged to FRS 15 and historical numbers have been restated to include advertising revenue that were previously reported as subscription revenues.
Alternative Performance Measures
The purpose of Alternative Performance Measures (APMs) is to facilitate the analysis of business performance and industry trends that cannot be directly derived from financial statements. NENT Group is using the following Alternative Performance Measures:
- · Change in net sales from Organic growth, Acquisitions/divestments and Changes in FX rates
- ·
- Net debt and Net debt/EBITDA
- · Capital Employed and Return on Capital Employed (ROCE)
Reconciliation of sales growth
Since the Group generates the majority of its sales in currencies other than in the reporting currency (i.e. SEK, Swedish Krona) and currency rates have proven to be rather volatile, and due to the fact that the Group has historically made several acquisitions and divestments, the Company's sales trends and performance are analysed as changes in organic sales growth. This presents the increase or decrease in the overall SEK net sales on a comparable basis, allowing separate discussions of the impact of acquisitions/divestments and exchange rates.
Sales growth
| Q4 | Q4 | EY | FY | |||||
|---|---|---|---|---|---|---|---|---|
| (SEKm,%) | 2019 | 96 | 2018 | % | 2019 | 8 | 2018 | % |
| BROADCASTING & STREAMING | ||||||||
| Organic growth | 255 | 7.5% | 97 | 3.0% | 765 | 6.0% | 543 | 4.5% |
| Acquisitions/divestments | ||||||||
| Changes in FX rates | 28 | 0.8% | 77 | 24% | 132 | 10% | 295 | 2.5% |
| Reported change | 283 | 8.3% | 175 | 5.4% | 897 | 7.0% | 839 | 7.0% |
| STUDIOS | ||||||||
| Organic growth | -70 | -11.5% | 20 | 3.6% | 338 | 17.7% | -145 | -7.3% |
| Acquisitions/divestments | 3 | 0.1% | ||||||
| Changes in FX rates | 7 | 1.1% | 22 | 3.9% | 35 | 18% | 68 | 3.4% |
| Reported change | -63 | -10.5% | 42 | 7.6% | 373 | 19.5% | -75 | -3.8% |
| GROUP | ||||||||
| Organic growth | 176 | 4 4% | 136 | 3.7% | 938 | 6.4% | 518 | 3.8% |
| Acquisitions/divestments | 3 | |||||||
| Changes in FX rates | 34 | 0.9% | 103 | 2.8% | 165 | 11% | 359 | 2.6% |
| Reported change | 210 | 5.3% | 239 | 6.4% | 1,103 | 7.6% | 880 | 6.4% |
Reconciliation of operating income before IAC
Operating income before items affecting comparability refers to operating income after the reversal of material items and events related to changes in the Group's structure or lines of business, which are relevant for understanding the Group's development on a like-for-like basis. This measure is used by management to follow and analyse the underlying profits and to offer more comparable figures between periods.
Operating income before IAC
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 Q4 2018 | 2019 | 2018 | |
| Operating income | -217 | 516 | 758 | 1.504 |
| ltems affecting comparability | -731 | 5 | -787 | -40 |
| Operating income before items affecting comparability | 513 | 511 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 1.545 | 1.544 |
ltems affecting comparability
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 Q4 2018 | 2019 | 2018 | |
| Costs related to the separation and listing of NENT Group | -56 | |||
| Write down of free-TV content and other assets | -540 | -16 | -540 | -16 |
| Restructuring NENT Group | -190 | -190 | -53 | |
| Revaluation of liabilities related to options to acquire shares | 14 | |||
| Impairment of goodwill related to closed company | -6 | |||
| Deconsolidation of the operations in Tanzania | 21 | 21 | ||
| Total | -731 | 5 - | -787 | -40 |
ltems affecting comparability classified by function
| Full year | Full year | |||
|---|---|---|---|---|
| (SEKm) | Q4 2019 Q4 2018 | 2019 | 2018 | |
| Cost of goods sold | -416 | -416 | ||
| Administrative expenses | -312 | - | -368 | -53 |
| Other operating income | 21 | 35 | ||
| Other operating expenses | -3 | -16 | -3 | -22 |
| Total | -731 | 5 | -787 | -40 |
Reconciliation of net debt/EBITDA ratio
Net debt refers to the net of interest-bearing liabilities less total cash and interest-bearing assets. As from 1 January 2019 net debt also includes lease liabilities net of sublease receivables and dividend payable. Net debt is used by Group management to track the debt evolvement of the Group and to analyse the leverage and refinancing need of the Group. The net debt to EBITDA ratio provides a KPI for net debt in relation to cash profits generated by the business, i.e. an indication of a business ability to pay off all its debts. This measure is commonly used by financial institutions to rate credit worthiness.
Net debt
| 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|
| (SEKm) | 2018 | 2019 | 2019" | 2019 | 2019 |
| Short-term borrowings | 3.762 | 2.865 | 2,510 | 2.980 | |
| Liabilities related to MTG | 4.373 | ||||
| Short-term borrowings | 4.373 | 3,762 | 2.865 | 2,510 | 2,980 |
| Long-term borrowings | 501 | 2.000 | 2.300 | 1.800 | |
| Total financial borrowings | 4.373 | 4.263 | 4.865 | 4.810 | 4,780 |
| Cash and cash equivalents | 428 | 731 | 1.572 | 889 | 1,238 |
| Financial net debt | 3,944 | 3,532 | 3,293 | 3.921 | 3,542 |
| Total lease liabilities | 897 | 865 | 845 | 823 | |
| Total sublease receivables | 240 | 229 | 228 | 225 | |
| Lease liabilities net of sublease receivables | 657 | 636 | 617 | 598 | |
| Dividend payable | 219 | 219 | |||
| Net debt | 3.944 | 4.189 | 4.148 | 4.756 | 4,139 |
Net debt / EBITDA before IAC trailing 12 months
| 04 | 0 | 02 | 03 | C | |
|---|---|---|---|---|---|
| (SEKm) | 2018 | 2019 | 2019" | 2019 | 2019 |
| Operating income before IAC | 1.544 | 1.562 | 1.549 | 1.547 | 1.545 |
| Depreciation, amortisation and writedowns of non-current assets | 201 | 315 | 323 | 330 V | 336 |
| EBITDA trailing 12 months | 1.745 | 1.877 | 1.871 | 1.877 | 1.881 |
| Net debt | 3.944 | 4.189 | 4.148 | 4.756 | 4,139 |
| Total net debt / EBITDA trailling 12 months | 23 | 2.2 | 2.2 | 25 ' | 22 |
1) Items within accounts receivable and cash equivalents as of 30 June have been restated and increased by SEK 62m respectively. The net debt as of June 30 was thus SEK 4,148m compared with the previously reported SEK 4,210m.
Reconciliation of Return on Capital Employed (ROCE)
Return on capital employed is a performance measure whereby operating income before items affecting comparability is put in relation to the capital employed within the operations. Operating income before items affecting comparability is the main profit level that operations are responsible for and comprise results before interest and tax. Capital employed is the sum of current and non-current assets less current and non-current liabilities, provisions and liabilities at fair value. All items are noninterest-bearing. Capital employed thus equals the sum of equity and net debt.
Return on Capital Employed (ROCE)
| Q1 | 02 | OB | Q4 | C | Q2 | Q3 | @4 | |
|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2018 | 2018 | 2018 | 2018 | 2019 | 2019" | 2019 | 20192 |
| Inventory | 2,514 | 2,278 | 2,387 | 2.428 | 2,916 | 2.852 | 2,877 | 2,551 |
| Accounts receivables | 1,224 | 1,158 | 1,187 | 1,224 | 1,111 | 1,209 | 1,243 | 1,112 |
| Prepaid expense and accrued income | 3,380 | 3,566 | 3,285 | 3,951 | 3,797 | 4,295 | 4,477 | 4,609 |
| Other current assets | 420 | 799 | 590 | 468 | 732 | 865 | 909 | 532 |
| Other current liabilities | -5,783 | -6,287 | -5,834 | -6,598 | -6,616 | -7,521 | -6,874 | -6.923 |
| Total working capital | 1,756 | 1,513 | 1,614 | 1,471 | 1,940 | 1,700 | 2,633 | 1,882 |
| Intanaibles assets | 3.101 | 3,128 | 3,462 | 3,404 | 3,434 | 3,431 | 3.424 | 3,384 |
| Machinery, equipment and installations | 145 | ારવે | 150 | 152 | 158 | 163 | 163 | 165 |
| Right-of-use assets | 631 | 611 | 588 | 566 | ||||
| Shares and participations | 16 | 23 | 22 | 20 | 22 | 140 | 147 | 142 |
| Other long term receivables | 144 | 154 | 162 | 127 | 153 | 143 | 178 | 171 |
| Provisions | -472 | -474 | -426 | -309 | -305 | -289 | -284 | -414 |
| Other non-current liabilities | -354 | -351 | -342 | -324 | -340 | -334 | -357 | -316 |
| Other items included in the capital employed | 2,581 | 2,639 | 3,028 | 3,071 | 3,753 | 3,865 | 3,859 | 3.699 |
| Capital employed | 4,337 | 4,151 | 4,640 | 4,541 | 5,693 | 5,564 | 6,492 | 5,581 |
| Average Capital Employed (5 quarters) | 3.446 | 3.649 | 4,015 | 4,229 | 5.177 | 5,297 | 5,638 | 5,700 |
| Operating income before IAC 12 months trailing | 1,533 | 1,539 | 1,525 | 1,544 | 1,562 | 1,549 | 1,547 | 1,545 |
| ROCE % | 44.5% | 42.2% | 38.0% | 36.5% | 29.9% | 29.1% | 27.4% | 27.1% |
l) Items within accounts receivable and cash equivalents as of 30 June have been restated and increased by SEK 62m respectively. Total working capital as of June 30 was thus SEK 1,700m compared with the previously reported SEK 1,762m.
2) Average Capital Employed (5 quarters) and Operating income before IAC 12 months trailing has been adjusted effect for IFRS 16 for increased comparability. 2018 periods in Average capital employed has been adjusted for Right-of-use assess with SEK 631m, adjusting the Average capital employed with SEK 126m from SEK 5,574m to SEK 5,700m.
Definitions
Capital employed
Capital employed is the sum of current and non-current and non-current liabilities, provisions and liabilities at fair value. All items are non-interest-bearing.
CSOL, Commercial Share of Listening
CSOL comprises NENT Group's estimated share of the commercial radio listening in the age group 12 years in Norway and 12-79 years in Sweden.
CSOV, Commercial Share of Viewing
CSOV comprises NENT Group's estimated share of the commercial TV viewing in the age group 15-49 years.
Earnings per share
Earnings per share is expressed as net income attributable to equity holders of the parent divided by the average number of shares.
EBITDA
EBITDA is read Earnings Before Interest, Tax, Depreciation and Amortisation.
ltems Affecting Comparability
ltems Affecting Comparability refers to material items and events related to changes in the Group's structure or lines of business, which are relevant for understanding the Group's development on a likefor-like basis.
Net debt
Net debt is the sum of short- and long-term interest-bearing liabilities less total cash and interestbearing assets. As from 1 January 2019 net debt also includes lease liabilities net of sublease receivables and dividend payable.
Operating income
Operating income comprise results before interest and tax. A synonym for operating income is EBIT (Earnings Before Interest and Tax).
Organic growth
Change in net sales compared to the same period of the previous year excluding acquisitions and divestments and adjusted for currency effects.
Return On Capital Employed (ROCE) %
Return on capital employed is calculated as operating income as a percentage of average capital employed.
Shareholder information
2020 Annual General Meeting
The 2020 Annual General Meeting of NENT shareholders will be held on Tuesday 19 May 2020 in Stockholm. Shareholders wishing to have matters considered at the meeting should submit their proposals in writing to [email protected] or to the Company Secretary, Nordic Entertainment Group AB, BOX 17104, 104 62 Stockholm, Sweden, at least seven weeks before the meeting in order that such proposals may be included in the notices to the meeting. Further details of when and how to register will be published in advance of the meeting.
The Board of Directors will propose the payment of an annual ordinary cash dividend of SEK 7.00 (6.50) per share to the Annual General Meeting of shareholders. The total proposed ordinary cash dividend payment would therefore amount to approximately SEK 471m (438), based on the maximum potential number of outstanding ordinary shares. The Board of Directors of NENT Group intends to further propose that the remainder of the Group's retained earnings for the year ended 31 December 2019 be carried forward into the 2020 accounts. The proposal is in line with NENT Group's dividend policy.
Financial calendar 2020
| 2019 Annual & Sustainability report | 2 April |
|---|---|
| Q1 interim report | 23 April |
| 2020 Annual General Meeting | 19 May |
| Q2 interim report | 22 July |
| Q3 interim report | 22 October |
Questions?
[email protected] (or Tobias Gyhlénius, Head of External Communications; +46 73 699 27 09) [email protected] (or Stefan Lycke, Head of Investor Relations; +46 73 699 27 14)
Download high-resolution photos: Flickr
Follow us: nentgroup.com / Facebook / Twitter / LinkedIn / Instagram
Conference call
The company will host a conference call today at 09.00 Stockholm local time, 08.00 London local time and 03.00 New York local time. To participate in the conference call, please dial:
| Sweden: | +46 (0) 8 506 921 80 |
|---|---|
| UK: | +44 (0) 8 445 718 892 |
| ાટઃ | +1 6 315 107 495 |
The access pin code for the call is 6697906.
To listen to the conference call online and for further information, please visit www.nentgroup.com
n nordic
Points (v)c
- +46 (0)8 562 023 00
- nentgroup.com
- [email protected]
Nordic Entertainment Group AB (publ) (NENT Group) is the Nordic region's leading entertainment provider. We entertain millions of people every day with our streaming services, TV channels and radio stations, and our production companies create content that is experienced around the world. We make life more entertaining by telling stories, touching lives and expanding worlds – from live sports, movies and series to music and original shows. Headquartered in Stockholm, NENT Group is listed on Nasdaq Stockholm ('NENT A' and 'NENT B'). This information is information that Nordic Entertainment Group AB (publ) (NENT Group) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on 4 February 2020.