Interim / Quarterly Report • Oct 24, 2019
Interim / Quarterly Report
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| Nine | Nine | ||||
|---|---|---|---|---|---|
| months | months | Full year | |||
| (SEKm) | Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| Net sales | 3,799 | 3,439 | 11,502 | 10,609 | 14,568 |
| Organic growth | 9.8% | $-0.5%$ | 7.2% | 3.8% | 3.8% |
| Change in reported net sales | 10.5% | 3.3% | 8.4% | 6.4% | 6.4% |
| Operating income - Business segments 2) | 367 | 355 | 1,220 | 1,149 | 1,706 |
| Central operations | $-65$ | -56 | $-188$ | $-115$ | $-162$ |
| Operating income before IAC | 302 | 299 | 1,032 | 1,034 | 1,544 |
| Items affecting comparability (IAC) | 3 | -56 | $-45$ | $-40$ | |
| Operating income | 302 | 303 | 975 | 989 | 1,504 |
| Operating margin before IAC | 8.0% | 8.7% | 9.0% | 9.7% | 10.6% |
| Operating margin | 8.0% | 8.8% | 8.5% | 9.3% | 10.3% |
| Net income | 233 | 270 | 748 | 815 | 1,292 |
| Basic earnings per share (SEK) | 3.46 | 4.04 | 11.13 | 12.21 | 19.24 |
| Net debt | 4,756 | - | 4,756 | ٠ | 3,944 |
1) 2018 figures included in the calculation of trailing 12 months EBITDA before IAC have been adjusted for the estimated effect as if IFRS 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 aggregation of financial information for entities under common control that do not meet the definition of a group according to IFRS 10. Pro forma information 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 1 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 9 for more information.
"Q3 was a historically important quarter for NENT Group. We have not only delivered on our profitable growth commitment, but Viaplay has continued to add subscribers at a healthy rate and are now up 25% in the twelve months. We have shifted to a functional operating model that will make us faster and more efficient, and we will launch Viaplay in Iceland in H1 2020. Furthermore, we yesterday announced an agreement to create a 50/50 joint venture between Viasat Consumer and Canal Digital, which is expected to yield substantial synergies and drive shareholder value."
The positive momentum seen in H1 continued into Q3 with higher sales and profits for both operating segments. Group sales were up 10% on an organic basis and operating income for our combined business segments was up 3% despite US dollar transactional headwinds of SEK 20m. Our central operation costs were up following initial costs related to the Viasat Consumer / Canal Digital combination.
Our Broadcasting & Streaming operations delivered their 12th consecutive quarter of profitable growth, which demonstrates the positive effect of our investments into the streaming market. Subscription & Other sales, which accounted for 63% of Group sales, were up 11%. We added 37k Viaplay subscribers, compared to a loss of 13k last year, and the base has grown over 25% in the last twelve months to 1,459k. The expansion to Iceland in the first half of next year is in line with our strategy, and reflects the strength of our content, the attraction of such a highly connected society, and the fact that our technology is built to be able to scale efficiently and effectively.
Advertising sales, which accounted for 22% of Group sales, were up 2% as higher prices offset the continuing fall in linear TV viewing levels. We are now entering the 2020 annual advertising contract negotiations and, while it's far too
early to indicate the outcome, it is clear that demand for TV advertising remains high even if there is a shortage of inventory supply. We do therefore expect prices to continue to rise.
NENT Studios, which accounted for 15% of Group sales, generated 32% growth, primarily on the back of exceptional performance in the scripted drama but also from double digit growth in non-scripted productions. Operating profits were also up despite the investments we have made into our US based operations.
We also announced a new organisation and operating model in September, which we are now implementing. We are moving from a country based model to a structure based on focused areas of responsibility working across markets, products and brands. The new structure will help us to take decisions faster, scale flexibly, and generate significant savings to enable our continuing investment into content and technology.
We have also acquired the exclusive rights to the Ice Hockey World Championship from 2024 to 2028. We already show the tournament in Sweden and will now expand the coverage to the entire Nordic region as part of our unrivalled winter sports offering.
Yesterday's announcement of the combination of our satellite and broadband-TV business with Canal Digital is a very important milestone for us. I am convinced that this combination will not only create significant shareholder value, but also allow for continued investments into the business and its subscriber offering. This combination is perfectly in line with our strategy to prioritise the substantial opportunity that we see in the streaming market.
Anders Jensen President & CEO
NENT Group acquired the exclusive Nordic media rights to the main International Skating Union (ISU) competitions up to and including the 2022/2023 season. From autumn 2019, nearly 400 hours of worldclass speed skating and figure skating will be shown live every season on NENT Group.
NENT Group acquired the exclusive Nordic media rights to top-division women's football from England, Germany and France. Over 100 women's football matches will be shown live every year until 2022. NENT Group has also secured the Nordic rights to two upcoming UEFA Women's EURO 2021 qualifiers featuring Sweden and Norway.
NENT Group announced that it will move to a new operating model from 1 October. The new set-up is based on specialities that operate across the Group in areas such as people, sales, content, marketing and technology. This lead to a smaller, more focused, more integrated and more operational Group Executive Management team of eight leaders.
The new Executive Management team consists of Anders Jensen, President and CEO; Gabriel Catrina, EVP & Chief Financial Officer; Sahar Kupersmidt, EVP & Chief People and Culture Officer; Filippa Wallestam, EVP & Chief Content Officer; Kim Poder, EVP & Chief Commercial Officer; Matthew Hooper, EVP & Chief Corporate Affairs Officer; Kaj af Kleen, EVP & Chief Technology and Product Officer; and Mia Suazo Eriksson, EVP & Chief Marketing Officer.
NENT Studios, the company's production business comprising 32 companies across 17 countries, will be split into three units covering the Nordic region and central and eastern Europe; the UK; and the US.
NENT Group announced that it will launch its Viaplay streaming service in Iceland in the first half of 2020. Viaplay will now be available to viewers in all five Nordic countries. Iceland is an ideal market for Viaplay's unique and easy to use streaming offering given the combination of being one of the most connected countries in the world together with an interest in Nordic content.
NENT Group announced that has 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.
NENT Group announced that it has 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 will 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.
A full list of announcements and reports can be found at www.nentgroup.com.
Net sales were up 11% to SEK 3,799m (3,439) following 10% organic growth and a 1% FX contribution.
Operating income for the combined business segments increased by 3% to SEK 367m (355). Operating income before IAC amounted to SEK 302m (299) as higher profits in the operating segments were offset by higher central operation costs. The increase in central operation costs reflected initial advisory costs of SEK 13m related to the proposed Viasat Consumer / Canal Digital combination. Items affecting comparability amounted to SEK 0m (3). See page 21 for a comprehensive list of items affecting comparability.
Net interest and other financial items totaled SEK -4m (16). Net interest amounted to SEK -12m (-11), of which SEK -4m (0) related to the interest on net lease liabilities. Other financial items amounted to SEK 8m (27) and mainly comprised the impact of exchange rate differences on financial items.
Tax charges amounted to SEK -64m (-49) and net income totaled SEK 233 (270), with basic earnings per share of SEK 3.46 (4.04).
| (SEKm) | Q3 2019 | Q3 2018 | Nine months 2019 |
Nine months 2018 |
Full year 2018 |
|---|---|---|---|---|---|
| Net sales | 3,235 | 2,985 | 10,010 | 9,397 | 12,800 |
| of which advertising | 835 | 823 | 2,846 | 2,847 | 4,017 |
| of which subscription & other | 2,400 | 2.162 | 7,164 | 6,550 | 8,783 |
| Operating expenses Operating income |
$-2.905$ 330 |
$-2.664$ 321 |
$-8.839$ 1,171 |
$-8.267$ 1,130 |
$-11,139$ 1,661 |
| Operating margin | 10.2% | 10.8% | 11.7% | 12.0% | 13.0% |
| Net sales growth | 8.4% | 5.9% | 6.5% | 7.6% | 7.0% |
| Organic growth | 7.7% | 2.2% | 5.4% | 5.1% | 4.5% |
| Acquisitions/divestments | |||||
| Changes in FX rates | 0.6% | 3.7% | 1.1% | 2.5% | 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 and technology as well as the depreciation of the Swedish krona. Operating income amounted to SEK 330m (321), with an operating margin of 10.2% (10.8).
Advertising sales were up 2% on a reported basis. TV advertising sales were down slightly as higher prices and audience shares were offset by lower linear TV viewing levels, as well as softer advertising markets. NENT Group's TV audience shares was up in all three markets but the TV advertising markets are each estimated to have declined.
Viafree sales were up and the service now has 2.3 million registered users and approximately 3.8 million downloaded apps across the region.
Radio sales were up as continued growth in the Swedish business more than offset lower sales for the Norwegian business. NENT Group's Swedish radio audience share increased significantly while the Norwegian share was down. The Swedish and Norwegian radio advertising markets are both estimated to have declined.
Subscription & other sales were up 11% 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) with Viaplay adding 37k customers q-o-q to end the period with 1,459k subscribers. Viaplay now represents 61% (57) of the total subscriber base. The Viasat direct-to-consumer subscriber base was broadly stable q-o-q at 490k as continued growth in the broadband-TV base was offset by the decline in the satellite base. The third party subscriber base decreased by 14k q-o-q to 451k which primarily reflected the typical seasonal patterns.
| (SEKm) | Q3 2019 | Q3 2018 | Nine months 2019 |
Nine months 2018 |
Full year 2018 |
|---|---|---|---|---|---|
| Net sales | 640 | 480 | 1,744 | 1,308 | 1,911 |
| Operating expenses | $-603$ | -446 | $-1,695$ | $-1,289$ | $-1,866$ |
| Operating income | 37 | 34 | 49 | 19 | 45 |
| Operating margin | 5.8% | 7.1% | 2.8% | 1.5% | 2.4% |
| Net sales growth | 33.3% | $-15.4%$ | 33.3% | $-8.2%$ | $-3.8%$ |
| Organic growth | 32.1% | $-19.8%$ | 31.2% | $-11.6%$ | $-7.3%$ |
| Acquisitions/divestments | ٠ | 0.0% | $\overline{\phantom{a}}$ | 0.2% | 0.1% |
| Changes in FX rates | 12% | 4.4% | 2.2% | 3.2% | 3.4% |
Sales were up 32% on an organic basis, primarily driven by exceptional growth in scripted drama productions for both Viaplay and third party customers. Non-scripted sales were also very healthy in the quarter.
Operating income increased to SEK 37m (34), with an operating margin of 5.8% (7.1) and included strategic investments into the US.
Cash flow from operations before changes in working capital amounted to SEK 316m (302). Depreciation and amortisation charges totalled SEK 84m (57). The Group reported a SEK -879m (-185) change in working capital, reflecting higher payments in relation to new and prolonged sports rights compared to last year which was positively impacted by advance payments made in 2017. In addition, working capital increased in NENT Studios resulting from the strong sales growth in Q2 and Q3 with receipts typically following production payments. Net cash flow from operations totalled SEK -562m $(117)$ .
Investments in business operations amounted to SEK 0m (-6). Capital expenditure on tangible and intangible assets totalled SEK-47m (-400) with Q3 2018 including the impact of the investment in the new Swedish radio licences. Other investing activities totalled SEK 0m (17). Total cash flow related to investing activities therefore amounted to SEK -47m (-388).
Cash flow from financing activities amounted to SEK -73m (306). New long-term borrowings amounted to SEK 300m (0) and related to a 7-year loan within the framework of the Group's MTN program that was used to replace short-term borrowings. The change in short-term borrowings of -355m (0) reflected the repayment of the commercial papers programme.
The net change in cash and cash equivalents amounted to SEK -682m (34), and the Group had cash and cash equivalents of SEK 889m (146) at the end of the period.
The Group's total net debt position amounted to SEK 4,756m (N/A) at the end of the period and comprised financial net debt of SEK 3,921m (N/A) including cash and cash equivalents of SEK 889m (147) net of lease liabilities and sublease receivables of SEK 617m (N/A), as well as the SEK 219m remaining 50% instalment of the annual cash dividend.
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.
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.
| Nine | Nine | ||||
|---|---|---|---|---|---|
| months | months | Full year | |||
| (SEKm) | Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| Net sales | $\sim$ | ||||
| Net interest and other financial items | $\overline{\phantom{a}}$ | ||||
| Income before tax and appropriations | $-20$ | -78 | $-173$ | $-78$ | $-124$ |
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 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 preparation of the listing prospectus except for the new standard IFRS 16 Leases that has been applied since 1 January 2019.
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 lessee, 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 588 and a receivable related to subleases amounting to SEK 228 are recognised in the 30 September balance sheet. A leasing obligation amounting to SEK 845m 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 Q3 financial statement and key ratios.
| Nine months | Nine months | ||
|---|---|---|---|
| 2019 without | Impact | 2019 with | |
| (SEKm, %) | IFRS 16 | IFRS 16 | IFRS 16 |
| Operating income | 961 | 14 | 975 |
| IAC | $-56$ | $-56$ | |
| Operating income before IAC | 1,017 | 14 | 1,031 |
| Amortisation and depreciation | 170 | 76 | 246 |
| EBITDA | 1,187 | 90 | 1,277 |
| Financial net | $-2$ | $-14$ | -16 |
| Operating margin before IAC (%) | 8.8% | 0.2% | 9.0% |
| Operating margin (%) | 8.4% | 0.1% | 8.5% |
| Right of use assets | 588 | 588 | |
| Sublease receivables | $\overline{a}$ | 228 | 228 |
| Total assets related to leasing | $\overline{\phantom{0}}$ | 871 | 871 |
| Right of use assets | $\overline{\phantom{a}}$ | 588 | 588 |
| Capital employed related to leasing | $\overline{\phantom{0}}$ | 588 | 588 |
| Lease liability | 845 | 845 | |
| Sublease recievables | - | 228 | 228 |
| Net debt related to leasing | Ξ. | 617 | 617 |
| Total assets | 14,253 | 871 | 15.124 |
| Capital employed | 5.904 | 588 | 6.492 |
| Net debt | 4,139 | 617 | 4,756 |
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 requlations 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 more detail in the prospectus "Admission to trading of shares in Nordic Entertainment Group AB (pub) on Nasdag Stockholm", which is available at www.nentgroup.com.
Stockholm, 24 October 2019
Anders Jensen President & CEO
We have reviewed the summary interim financial information (interim report) of Nordic Entertainment Group AB (publ.) as of 30 September 2019 and the nine month period then ended. The Board of Directors and the President & CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.
Stockholm, 24 October 2019
KPMG AB
Joakim Thilstedt Authorised Public Accountant Auditor in Charge
Hök Olov Forsberg Authorised Public Accountant
| Nine | Nine | ||||
|---|---|---|---|---|---|
| months | months | Full year | |||
| (SEKm) | Q3 2019 | Q3 2018 | 2019" | 2018 | 2018 |
| Net sales | 3.799 | 3,439 | 11,502 | 10,609 | 14,568 |
| Cost of goods and services | $-2,686$ | $-2.374$ | $-7,890$ | $-7,170$ | $-9,805$ |
| Gross income | 1,113 | 1.064 | 3.612 | 3.439 | 4,763 |
| Selling expenses | $-243$ | $-229$ | $-765$ | $-643$ | $-857$ |
| Administrative expenses | $-572$ | $-539$ | $-1,870$ | $-1,778$ | $-2,387$ |
| Other operating income | 12 | 12 | 67 | 27 | 44 |
| Other operating expenses | $-9$ | $-8$ | $-14$ | $-10$ | $-17$ |
| Share of earnings in associated companies and joint ventures | $-1$ | $\overline{2}$ | $-1$ | $-3$ | |
| Items affecting comparability | 3 | $-56$ | $-45$ | $-40$ | |
| Operating income | 302 | 303 | 975 | 989 | 1,504 |
| Interest income | $\overline{2}$ | $\overline{2}$ | 9 | 6 | $\mathbb{I}$ |
| Interest expenses | $-10$ | $-13$ | $-20$ | $-38$ | $-48$ |
| Leasing net interest | -4 | $-14$ | $\overline{a}$ | ||
| Other financial items | 8 | 27 | 9 | 27 | $-15$ |
| Income before tax | 298 | 319 | 959 | 983 | 1,452 |
| Tax | $-64$ | $-49$ | $-211$ | $-168$ | $-160$ |
| Net income for the period | 233 | 270 | 748 | 815 | 1,292 |
| ITEMS THAT ARE OR MAY BE RECLASSIFIED TO PROFIT OR LOSS NET OF TAX Currency translation differences |
18 | $-15$ | 98 | 85 | 46 |
| Cash flow hedge | 62 | $-10$ | 99 | 77 | 68 |
| 81 | $-25$ | 196 | 162 | $\overline{114}$ | |
| Other comprehensive income for the period | 314 | 245 | 945 | 977 | 1,406 |
| Total comprehensive income for the period | |||||
| NET INCOME FOR THE PERIOD ATTRIBUTABLE TO Equity holders of the parent company Non-controlling interest |
234 $-1$ |
271 -1 |
748 ٦ |
815 | 1,286 6 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO Equity holders of the parent company Non-controlling interest |
315 -1 |
247 -1 |
944 | 978 -1 |
1.400 6 |
| EARNINGS PER SHARE Basic earnings per share (SEK) Diluted earnings per share (SEK) |
3.46 3.45 |
4.04 4.01 |
11.13 11.09 |
12.21 12.10 |
19.24 19.09 |
| NUMBER OF SHARES 2) Shares outstanding at the end of the period Basic average number of shares outstanding Diluted average number of shares outstanding |
67,342,244 67,342,244 67.573.698 |
66,980,902 66,928,138 67.410.579 |
67,258,857 67,258,857 67.454.156 |
66,980,902 66,793,622 67.360.301 |
66,980,902 66,854,133 67.362.405 |
1) Reported values for Q1 2019 have been restated by SEK 126m 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.
| 30 Sep | 30 Sep | 31 Dec | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| NON-CURRENT ASSETS | |||
| Intangible assets | 3,424 | 3,462 | 3,405 |
| Machinery, equipment and installations | 163 | 150 | 152 |
| Right-of-use assets | 588 | $\overline{a}$ | |
| Shares and participations | 147 | 22 | 20 |
| Sublease receivables | 195 | $\overline{a}$ | |
| Other long-term receivables | 178 | 162 | 127 |
| Total non-current assets | 4,695 | 3,796 | 3,704 |
| CURRENT ASSETS | |||
| Inventories | 2,877 | 2,387 | 2.428 |
| Accounts receivables | 1,243 | 1,187 | 1,224 |
| Sublease receivables | 33 | ||
| Prepaid expense and accrued income | 4,477 | 3,285 | 3,951 |
| Receivables related to MTG Other current assets |
909 | 685 590 |
467 |
| 889 | 147 | 428 | |
| Cash, cash equivalents and short-term investments | |||
| Total current assets | 10,429 15,124 |
8,281 | 8,498 |
| Total assets | 12,076 | 12,202 | |
| EQUITY | |||
| Equity 1) | 1,719 | 5,464 | 581 |
| Non-controlling interest | 16 | 9 | 16 |
| Total equity | 1,735 | $\overline{5,}473$ | 597 |
| NON-CURRENT LIABILITIES | |||
| Long-term borrowings 1) | 2,300 | ||
| Long-term lease liabilities | 713 | ||
| Long-term provisions | 141 | 259 | 171 |
| Other non-current liabilities | 357 | 342 | 324 |
| Total non-current liabilities | 3,512 | 601 | 495 |
| CURRENT LIABILITIES | |||
| Short-term borrowings 1) | 2,510 | ||
| Short-term lease liabilities | 132 | ||
| Dividend payable | 219 | ||
| Short-term provisions | 142 | 167 | 138 |
| Liabilities related to MTG 1 | 4,373 | ||
| Other current liabilities | 6,874 9,877 |
5,834 | 6,598 11,110 |
| Total current liabilities | 6,001 | ||
| Total liabilities | 13,389 | 6,603 | 11,605 |
| Total shareholders' equity and liabilities | 15,124 | 12.076 | 12,202 |
I) The final capitalisation of the NENT Group took place before listing and included the replacement of liabilities to MTG with external debt and a capital injection.
| MANITURES SCREENER OF CASH HOW | |||||
|---|---|---|---|---|---|
| Nine | Nine | ||||
| months | months | Full year | |||
| (SEKm) | Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| Net income for the period | 233 | 270 | 748 | 815 | 1,292 |
| Depreciations, amortisations and write-downs | 84 | 57 | 246 | 149 | 208 |
| Other adjustments for non-cash items | $-26$ | $-43$ | $-19$ | -5 | |
| Cash flow from operations | 316 | 302 | 950 | 945 | 1.496 |
| Changes in working capital | $-879$ | $-185$ | $-1,044$ | $-559$ | $-380$ |
| Net cash flow from/to operations | $-562$ | 117 | $-93$ | 386 | 1.116 |
| Acquisitions of operations | -6 | $-15$ | $-19$ | $-19$ | |
| Divestments of operations | |||||
| Capital expenditures in tangible and intangible assets | $-47$ | $-400$ | $-124$ | $-500$ | $-550$ |
| Other investing activities | 17 | $-105$ | $-22$ | ||
| Cash flow from/used in investing activities | $-47$ | $-388$ | $-244$ | $-541$ | $-567$ |
| New long-term borrowings | 300 | $\overline{\phantom{m}}$ | 2,300 | ||
| Change in short term borrowings | $-355$ | 2,510 | |||
| Amortisation of lease receivables | 8 | 24 | |||
| Amortisation of lease liabilities | $-29$ | $-89$ | |||
| Change in financing to/from MTG | 348 | $-4,474$ | 225 | 3,171 | |
| Shareholders' contribution | 620 | ||||
| Dividends to shareholders | $-219$ | $-32$ | $-3,310$ | ||
| Other cash flow from/to financing activities | 3 | $-42$ | 93 | 19 | $-70$ |
| Cash flow from/used in financing activities | $-73$ | 306 | 765 | 213 | $-209$ |
| Total net change in cash and cash equivalents for the period | $-682$ | 34 | 428 | 58 | 339 |
| Cash and cash equivalents at the beginning of the period 1 | 1.572 | 112 | 428 | 89 | 89 |
| Translation differences in cash and cash equivalents | $-2$ | 32 | |||
| Cash and cash equivalents at end of the period | 889 | 147 | 889 | 147 | 428 |
1) Items within accounts receivable and cash and cash equivalents as of 30 June have been restated and reduced and increased by SEK 62 million respectively.
÷
a.
| Consolidated statement or change in equity | |||||
|---|---|---|---|---|---|
| Nine | Nine | ||||
| months | months | Full year | |||
| (SEKm) | Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| Opening balance | 1.416 | 5.258 | 597 | 2.573 | 2.573 |
| Net income for the period | 233 | 270 | 748 | 815 | 1.292 |
| Other comprehensive income for the period | 81 | $-25$ | 196 | 162 | $\mathbb{I}14$ |
| Total comprehensive income for the period | 314 | 245 | 945 | 977 | 1.406 |
| Effect of employee share programmes | 5 | 17 | 20 | ||
| Shareholders' contribution | - | 620 | 2.000 | 2.000 | |
| Dividends | $-438$ | ||||
| Other transactions with shareholders | $-35$ | -94 | $-5,400$ | ||
| Closing balance | 1.735 | 5.473 | 1.735 | 5.473 | 597 |
| Nine | Nine | |||
|---|---|---|---|---|
| Full year | ||||
| Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| 8 | 2. | 22 | ||
| 8 | $\overline{2}$ | 22 | ||
| $-40$ | $-80$ | $-221$ | $-80$ | $-145$ |
| 15 | ||||
| -1 | ||||
| $-33$ | $-78$ | $-200$ | $-78$ | $-130$ |
| 13 | 27 | 6 | ||
| $-20$ | -78 | $-173$ | $-78$ | $-124$ |
| 124 | ||||
| $-20$ | $-78$ | $-173$ | $-78$ | |
| 17 | 37 | 17 | ||
| $-16$ | -61 | $-136$ | 61 | |
| months | months |
| 30 Sep | 30 Sep | 31 Dec | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| NON-CURRENT ASSETS | |||
| Intangible assets | |||
| Financial assets | 102 | ||
| Total non-current assets | 103 | $\overline{\phantom{a}}$ | |
| CURRENT ASSETS | |||
| Receivables from group companies | 9,331 | 2,000 | 13,056 |
| Other current receivables | 353 | 18 | 267 |
| Cash, cash equivalents and short-term investments | 700 | ||
| Total current assets | 10,384 | 18 | 13,326 |
| Total assets | 10,486 | 2.018 | 13,627 |
| SHAREHOLDERS' EQUITY | |||
| Restricted equity | 135 | ||
| Non-restricted equity | 1.300 | 1.939 | 2.007 |
| Total equity | 1.435 | 1.940 | 2,008 |
| NON-CURRENT LIABILITIES | |||
| Long-term borrowings | 2,300 | $\overline{\phantom{a}}$ | |
| Total non-current liabilities | 2,300 | $\overline{\phantom{a}}$ | |
| CURRENT LIABILITIES | |||
| Short-term borrowings | 2,510 | 73 | |
| Liabiltities to group companies | 3,687 | 31 | 11,201 |
| Dividens payable | 219 | ||
| Other current liabilities | 334 | $-47$ | 45 |
| Total current liabilities | 6,750 | 78 | 11,319 |
| Total shareholders' equity and liabilities | 10,486 | 2.018 | 13,327 |
| FY | QI | Q 2 | Q 3 | Q4 | F, | QI | Q 2 | Q3 | |
|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 |
| Broadcasting & Streaming | 11.960 | 3.118 | 3,290 | 2.981 | 3,394 | 12.785 | 3,322 | 3.422 | 3.223 |
| Studios | 1,703 | 329 | 423 | 455 | 562 | 1.769 | 404 | 552 | 577 |
| Central operations | 26 | 4 | 5 | 13 | $\overline{\phantom{a}}$ | ||||
| Total sales external customers | 13,688 | 3.452 | 3.719 | 3.439 | 3.959 | 14,568 | 3.727 | 3.975 | 3.799 |
| Broadcasting & Streaming | 4 | 15 | 15 | 16 | 12 | ||||
| Studios | 283 | 23 | 53 | 25 | 42 | 142 | 47 | 100 | 64 |
| Central operations | 136 | 23 | 18 | 10 | 19 | 16 | 19 | 18 | |
| Total sales between segments | 420 | 47 | 72 | 39 | 69 | 228 | 78 | 135 | 94 |
| QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 | |||
|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 |
| Broadcasting & streaming | 11.961 | 3.120 | 3.292 | 2.985 | 3.403 | 12.800 | 3,337 | 3.438 | 3.235 |
| of which advertising | 3.759 | 946 | 1.078 | 823 | 1.171 | 4.017 | 964 | 1.047 | 835 |
| of which subscription & other | 8.202 | 2.174 | 2.214 | 2.162 | 2.232 | 8.783 | 2,373 | 2,391 | 2.400 |
| Studios | 1.986 | 352 | 476 | 480 | 603 | 1.911 | 451 | 652 | 640 |
| Central operations | 162 | 27 | 23 | 12 | 24 | 84 | 17 | 20 | 18 |
| Eliminations | $-420$ | $-47$ | $-72$ | $-39$ | -69 | $-228$ | $-78$ | $-135$ | $-94$ |
| Total | 13.688 | 3.452 | 3.719 | 3.439 | 3.959 | 14.568 | 3.727 | 3.975 | 3.799 |
| F۱ | QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 | ||
|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 |
| Broadcasting & Streaming | 1,574 | 310 | 498 | 321 | 532 | 1.661 | 331 | 509 | 330 |
| Studios | 44 | $-24$ | 34 | 26 | 45 | $-14$ | 26 | 37 | |
| Business segments | 1.617 | 286 | 508 | 355 | 557 | 1.706 | 317 | 535 | 367 |
| Central operations | $-123$ | $-16$ | -44 | $-56$ | $-4^{-}$ | $-162$ | $-43$ | $-80$ | $-65$ |
| Total operating income before IAC | 1.495 | 271 | 464 | 299 | 511 | 1.544 | 274 | 455 | 302 |
| Items affecting comparability | 75 | $\overline{\phantom{a}}$ | $-48$ | $-40$ | -56 | $\overline{\phantom{a}}$ | |||
| Total | 1.570 | 271 | 415 | 303 | 516 | 1.504 | 218 | 455 | 302 |
| FY | Q 1 | Q 2 | Q3 | Q 4 | FY | Qì | Q 2 | Q 3 | |
|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | |
| GROUP | |||||||||
| Sales growth | 6.1% | 7.3% | 8.7% | 3.3% | 6.4% | 6.4% | 8.0% | 6.9% | 10.5% |
| - of which organic growth | 5.4% | 6.2% | 5.8% | $-0.5%$ | 3.7% | 3.8% | 5.9% | 5.8% | 9.8% |
| - of which acquisitions/divestments | $\overline{\phantom{a}}$ | $\sim$ | 0.1% | ÷, | |||||
| - of which changes in FX rates | 0.7% | 1.1% | 2.9% | 3.8% | 2.8% | 2.6% | 2.1% | 1.1% | 0.7% |
| Operating margin before IAC | 10.9% | 7.8% | 12.5% | 8.7% | 12.9% | 10.6% | 7.4% | 11.4% | 8.0% |
| Net debt (SEKm) | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{0}}$ | 3,944 | $\overline{\phantom{a}}$ | 4,189 | 4,148 | 4,756 | |
| Net debt/EBITDA 12 months trailing | $\overline{\phantom{0}}$ | 2.3 | 2.2 | 2.2 | 2.5 | ||||
| BROADCASTING & STREAMING | |||||||||
| Organic sales growth | 6.6% | 6.2% | 6.9% | 2.2% | 3.0% | 3.8% | 5.2% | 3.5% | 7.7% |
| Operating margin before IAC | 13.2% | 9.9% | 15.1% | 10.8% | 15.6% | 13.0% | 9.9% | 14.8% | 10.2% |
| CSOV Sweden (15-49) % | 24.1 | 23.1 | 23.9 | 23.1 | 23.6 | 23.4 | 23.6 | 23.3 | 24.1 |
| CSOV Norway (15-49) % | 15.5 | 15.1 | 15.9 | 13.5 | 17.7 | 15.6 | 17.0 | 16.0 | 16.1 |
| CSOV Denmark (15-49) % | 23.6 | 21.4 | 24.6 | 21.6 | 23.4 | 22.7 | 21.1 | 23.4 | 22.4 |
| CSOL Sweden (12-79) % | 40.3 | 38.0 | 40.4 | 42.8 | 41.9 | 40.9 | 45.6 | 44.8 | 47.6 |
| CSOL Norway (12+) % | 68.3 | 66.0 | 67.1 | 71.3 | 68.5 | 68.2 | 65.2 | 66.4 | 69.1 |
| Subscriber base ('000s) | $\overline{\phantom{a}}$ | 2,173 | 2,130 | 2,111 | 2,218 | $\overline{\phantom{a}}$ | 2,310 | 2,377 | 2,400 |
| - of which Viaplay | $\overline{\phantom{a}}$ | 1,202 | 1,177 | 1,166 | 1,258 | $\overline{\phantom{a}}$ | 1,357 | 1,421 | 1,459 |
| - of which Viasat direct-to-consumer 1) | $\overline{\phantom{a}}$ | 505 | 498 | 496 | 493 | $\overline{\phantom{0}}$ | 490 | 491 | 490 |
| - of which Viasat 3rd party | $\overline{\phantom{a}}$ | 466 | 455 | 449 | 466 | $\overline{\phantom{0}}$ | 463 | 465 | 451 |
| STUDIOS | |||||||||
| Organic sales growth | 4.2% | $-0.6%$ | $-10.0%$ | $-19.8%$ | 3.6% | $-7.3%$ | 22.9% | 35.0% | 32.1% |
| Operating margin before IAC | 2.2% | $-6.8%$ | 1.9% | 7.1% | 4.3% | 2.4% | $-3.1%$ | 4.0% | 5.8% |
1) Satellite and broadband subscribers where Viasat has a direct relationship with the customer
| Broadcasting | Central | |||||||
|---|---|---|---|---|---|---|---|---|
| & Streaming | Studios | operations | Total | |||||
| Q3 (SEKm) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 |
| REVENUE STREAMS | ||||||||
| Advertisina | 835 | 823 | 14 | 42 | $\overline{\phantom{a}}$ | $\sim$ | 850 | 865 |
| Subscription | 2,200 | 2,031 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.200 | 2.031 | ||
| Production | 6 | 13 | 488 | 341 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 494 | 354 |
| Licenses, royalities and other | 182 | $\overline{114}$ | 75 | 73 | ٠ | 4 | 256 | 190 |
| Total | 3,223 | 2,981 | 577 | 455 | ۰ | 4 | 3,799 | 3,440 |
| REVENUE RECOGNITION | ||||||||
| at a point in time | 181 | $\overline{114}$ | 74 | 72 | ۰ | $\overline{4}$ | 256 | 190 |
| over time | 3.041 | 2,867 | 502 | 383 | ٠ | $\overline{\phantom{a}}$ | 3.544 | 3,250 |
| Total | 3.223 | 2.981 | 577 | 455 | ۰ | 4 | 3.799 | 3,440 |
| Broadcasting | Central | |||||||
|---|---|---|---|---|---|---|---|---|
| & Streaming | Studios | operations | Total | |||||
| Nine months (SEKm) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 |
| REVENUE STREAMS | ||||||||
| Advertising | 2,846 | 2,847 | 50 | 122 | ۰ | ÷ | 2.896 | 2.969 |
| Subscription | 6,482 | 6,120 | $\overline{\phantom{0}}$ | $\overline{\phantom{a}}$ | 6.482 | 6,120 | ||
| Production | 15 | 61 | 1,199 | 888 | ۰ | ٠ | 1.214 | 949 |
| Licenses, royalities and other | 623 | 362 | 285 | 197 | 13 | 909 | 573 | |
| Total | 9.967 | 9.390 | 1.533 | 1,207 | 13 | 11,502 | 10,610 | |
| TIMING OF REVENUE RECOGNITION | ||||||||
| at a point in time | 624 | 362 | 284 | 197 | $\mathcal{P}$ | 13 | 909 | 573 |
| over time | 9,343 | 9,027 | 1.249 | 1.010 | - | $\overline{\phantom{a}}$ | 10.592 | 10,037 |
| Total | 9.967 | 9.390 | 1.533 | 1.207 | $\mathcal{P}$ | 13 | 11.502 | 10.610 |
| Broadcasting & Streaming |
Studios | Central operations |
Total | |
|---|---|---|---|---|
| Full year (SEKm) | 2018 | 2018 | 2018 | 2018 |
| REVENUE STREAMS | ||||
| Advertising | 4,017 | 172 | $\overline{\phantom{a}}$ | 4.189 |
| Subscription | 8,272 | $\overline{\phantom{a}}$ | 8,272 | |
| Production | 61 | 1,321 | 1,382 | |
| Licenses, royalities and other | 438 | 276 | 13 | 725 |
| Total | 12.785 | 1.769 | 13 | 14,568 |
| TIMING OF REVENUE RECOGNITION | ||||
| at a point in time | 436 | 277 | 13 | 726 |
| over time | 12,350 | 1,493 | $\sim$ | 13,842 |
| Total | 12,785 | 1.769 | 13 | 14,568 |
The format for the disaggregation of revenue has changed to fulfil the requirements in IFRS 15 and historical numbers have been restated to include advertising
revenue that were previously reported as subscription revenues
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:
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.
| Nine | Nine | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q 3 | months | months | FY | ||||||
| (SEKm, % | 2019 | $\%$ | 2018 | $\%$ | 2019 | $\%$ | 2018 | % | 2018 | % |
| BROADCASTING & STREAMING | ||||||||||
| Organic growth | 231 | 7.7% | 61 | 2.2% | 510 | 5.4% | 446 | 5.1% | 543 | 4.5% |
| Acquisitions/divestments | ٠ | |||||||||
| Changes in FX rates | 19 | 0.6% | 105 | 3.7% | 104 | 1.1% | 218 | 2.5% | 295 | 2.5% |
| Reported change | 250 | 8.4% | 166 | 5.9% | 613 | 6.5% | 664 | 7.6% | 839 | 7.0% |
| STUDIOS | ||||||||||
| Organic growth | 154 | 32.1% | $-112$ | $-19.8%$ | 408 | 31.2% | -166 | $-11.6%$ | $-145$ | $-7.3%$ |
| Acquisitions/divestments | 3 | 0.2% | 3 | 0.1% | ||||||
| Changes in FX rates | 6 | 12% | 25 | 4.4% | 28 | 2.2% | 46 | 3.2% | 68 | 3.4% |
| Reported change | 160 | 33.3% | $-87$ | $-15.4%$ | 436 | 33.3% | $-117$ | $-8.2%$ | $-75$ | $-3.8%$ |
| GROUP | ||||||||||
| Organic growth | 336 | 9.8% | $-16$ | $-0.5%$ | 762 | 7.2% | 382 | 3.8% | 518 | 3.8% |
| Acquisitions/divestments | 3 | ٠ | 3 | |||||||
| Changes in FX rates | 25 | 0.7% | 125 | 3.8% | 131 | 12% | 257 | 2.6% | 359 | 2.6% |
| Reported change | 361 | 10.5% | 109 | 3.3% | 892 | 8.4% | 641 | 6.4% | 880 | 6.4% |
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.
| Nine | Nine | ||||
|---|---|---|---|---|---|
| months | months Full year | ||||
| (SEK m ) | Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| Operating income | 302 | 303 | 975 | 989 | 1.504 |
| Items affecting comparability | $-56$ | -45 | $-40$ | ||
| Operating income before items affecting comparability | 302 | 299 | 1,031 | 1.034 | 1.544 |
| Nine | Nine | ||||
|---|---|---|---|---|---|
| months | months | Full year | |||
| (SEKm) | Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| Costs related to the separation and listing of NENT Group | -56 | ||||
| Impairment of recievables and content | $-16$ | ||||
| Restructuring NENT Group | $-53$ | $-53$ | |||
| Revaluation of liabilities related to options to acquire shares | 10 | 14 | 14 | ||
| Impairment of goodwill related to closed company | -6 | -6 | -6 | ||
| Deconsolidation of the operations in Tanzania | |||||
| Total | -56 | -45 | $-40$ |
| Nine | Nine | ||||
|---|---|---|---|---|---|
| months | months Full year | ||||
| (SEKm) | Q3 2019 | Q3 2018 | 2019 | 2018 | 2018 |
| Administrative expenses | $\overline{\phantom{a}}$ | -56 | $-53$ | $-53$ | |
| Other operating income | 8 | 35 | |||
| Other operating expenses | $-22$ | ||||
| Total | -56 | -45 | $-40$ |
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.
| 31 Dec | 31 Mar | $30$ Jun | 30 Sep | |
|---|---|---|---|---|
| (SEKm) | 2018 | 2019 | $2019$ 10 | 2019 |
| Short-term borrowings | ۰ | 3.762 | 2.865 | 2,510 |
| Liabilities related to MTG | 4,373 | |||
| Short-term borrowings | 4,373 | 3.762 | 2.865 | 2,510 |
| Long-term borrowings | - | 501 | 2,000 | 2,300 |
| Total financial borrowings | 4.373 | 4.263 | 4.865 | 4,810 |
| Cash and cash equivalents | 428 | 731 | 1,572 | 889 |
| Financial net debt | 3.944 | 3.532 | 3.293 | 3.921 |
| Total lease liabilities | ۰ | 897 | 865 | 845 |
| Total sublease receivables | ٠. | 240 | 229 | 228 |
| Lease liabilities net of sublease receivables | - | 657 | 636 | 617 |
| Dividend payable | 219 | 219 | ||
| Net debt | 3.944 | 4.189 | 4.148 | 4.756 |
| Q3 | ||||
|---|---|---|---|---|
| (SEKm) | 2018 | 2019 | $2019$ 10 | $2019^{2}$ |
| Operating income before IAC | 1.544 | 1.562 | 1.549 | 1.547 |
| Depreciation and amortisation | 201 | 315 | 323 | 330 |
| EBITDA last 12 months | 1.745 | 1.877 | 1,871 | 1,877 |
| Net debt | 3.944 | 4.189 | 4.148 | 4.756 |
| Total net debt / EBITDA ration 12 month trailing | 2.5 |
1) Items within accounts receivable and cash and cash equivalents as of 30 June have been restated and reduced and increased by SEK 62 million respectively. The net debt as of June 30 was thus SEK 4,148 million compared with the previously reported SEK 4,210 million.
2) 2018 figures included in the calculation of 12 months trailing EBITDA before IAC has been adjusted for the estimated effect as if IFRS 16 had been applied for the full period. The 12 months trailing Operating income before IAC has been adjusted for interest on leases with SEK 5m from SEK 1,542m to SEK 1,547m. The 12 months trailing Depreciation and amortisation has been adjusted for depreciation on leases with SEK 26m from SEK 305m to SEK 330m. EBITDA last 12 months has been adjusted in total with SEK 30m.
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.
| QI | Q 2 | Q 3 | Q4 | QI | Q 2 | Q3 | |
|---|---|---|---|---|---|---|---|
| (SEKm) | 2018 | 2018 | 2018 | 2018 | 2019 | $2019$ 10 | 2019 2) |
| Inventory | 2 5 14 | 2 2 7 8 | 2 3 8 7 | 2 4 2 8 | 2916 | 2852 | 2 877 |
| Accounts receivables | 1224 | 1158 | 1187 | 1224 | ווו ו | 1209 | 1243 |
| Prepaid expense and accrued income | 3 3 8 0 | 3566 | 3 2 8 5 | 3 9 5 1 | 3797 | 4 2 9 5 | 4 4 7 7 |
| Other current assets | 420 | 799 | 590 | 468 | 732 | 865 | 909 |
| Other current liabilities | $-5783$ | $-6287$ | $-5834$ | $-6598$ | -6 616 | $-7521$ | $-6874$ |
| Total working capital | 1756 | 1513 | 1 614 | 1 471 | 1940 | 1700 | 2 6 3 3 |
| Intangibles assets | 3 101 | 3 1 2 8 | 3462 | 3 4 0 4 | 3 4 3 4 | 3 4 3 1 | 3 4 2 4 |
| Machinery, equipment and installations | 145 | 159 | 150 | 152 | 158 | 163 | 163 |
| Right-of-use assets | $\sim$ | 631 | 611 | 588 | |||
| Shares and participations | 16 | 23 | 22 | 20 | 22 | 140 | 147 |
| Other long term receivables | 144 | 154 | 162 | 127 | 153 | 143 | 178 |
| Provisions | $-472$ | $-474$ | $-426$ | $-309$ | $-305$ | $-289$ | $-284$ |
| Other non-current liabilities | $-354$ | $-351$ | $-342$ | $-324$ | $-340$ | $-334$ | $-357$ |
| Other items included in the capital employed | 2 581 | 2 639 | 3028 | 3071 | 3753 | 3865 | 3859 |
| Capital employed | 4 337 | 4 151 | 4 6 4 0 | 4 5 4 1 | 5 6 9 3 | 5 5 6 4 | 6492 |
| Average Capital Employed (5 quarters) | 3446 | 3649 | 4 0 15 | 4 2 2 9 | 5 177 | 5 2 9 7 | 5 6 3 8 |
| Operating income before IAC 12 months trailing | 533 | 1539 | 1525 | 544 | 562 ا | 549 | 547 ا |
| ROCE % | 44,5% | 42,2% | 38,0% | 36,5% | 29,9% | 29,1% | 27,4% |
1) Items within accounts receivable and cash and cash equivalents as of 30 June have been restated and reduced and increased by SEK 62 million respectively. Total working capital as of June 30 was thus SEK 1,700 million compared with the previously reported SEK 1,762 million.
2) Average Capital Employed (5 quarters) and Operating income before IAC 12 months trailing has been adjusted for the estimated effect for IFRS 16 for increased comparability. 2018 periods included in Average capital employed has been adjusted for Right-of-use assets with SEK 631m, adjusting the Average capital employed with SEK 252m from SEK 5,385m to SEK 5,638m. The 12 month trailing Operating income before IAC has been adjusted for interest on leases with SEK 5m from SEK 1,542m to SEK 1,547m.
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 non-interest-bearing.
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 comprises NENT Group's estimated share of the commercial TV viewing in the age group 15-49 years.
Earnings per share is expressed as net income attributable to equity holders of the parent divided by the average number of shares.
EBITDA is read Earnings Before Interest, Tax, Depreciation and Amortisation.
Items 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 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 comprise results before interest and tax. A synonym for operating income is EBIT (Earnings Before Interest and Tax).
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 is calculated as operating income as a percentage of average capital employed.
The 2020 Annual General Meeting 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 for that such proposals may be included in the notice to the meeting. Further details of when and how to register will be published in advance of the meeting.
In accordance with the resolution of the 2019 Annual General Meeting, the Chairman of the Board has convened a Nomination Committee to prepare proposals for the 2020 Annual General Meeting. The Nomination Committee consists of Joachim Spetz, appointed by Swedbank Robur Funds; Erik Durhan, appointed by Nordea Funds; and Oskar Börjesson, appointed by Livförsäkringsbolaget Skandia. The three shareholders which have appointed representatives to the Nomination Committee hold approximately 20 percent of the total voting rights in NENT. The members of the Nomination Committee appointed Erik Durhan as Committee Chairman at their first meeting.
Please see https://www.nentgroup.com/about/corporate-governance/nomination-committee for information about the work of the Nomination Committee.
Q4 and full year 2019 report
4 February 2020
[email protected] (or Nicholas Smith, Acting Head of Public Relations; +46 73 699 26 95) [email protected] (or Stefan Lycke, Head of Investor Relations; +46 73 699 27 14)
Follow us: nentgroup.com / Facebook / Twitter / Linkedln / Instagram
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 |
| US: | $+1$ 6 315 107 495 |
The access pin code for the call is 9657189.
To listen to the conference call online and for further information, please visit www.nentgroup.com
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 24 October 2019.
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