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Viaplay Group
Quarterly Report • May 7, 2019
2993_10-q_2019-05-07_e9f2a703-0600-4231-9263-89c5fec8d6f6.pdf
Quarterly Report
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Interim report January-March
Q1 2019 highlights
- Sales of SEK 3,727m (3,452) with 5.9% organic growth
- Operating income for the combined business segments of SEK 317m (286)
- Operating income before items affecting comparability (IAC) of SEK 274m (271)
- Operating income of SEK 218m (271) including IAC of SEK -56m (-)
- Net income of SEK 167m (216) and basic earnings per share of SEK 2.48 (3.24)
- Viaplay subscribers up 99k compared to Q4'18 to 1,357k and represented 59% of total subscriber base
- Total net debt of SEK 4,189m including net obligation for leases of SEK 657m and equivalent to 2.2x 12 month trailing EBITDA before IAC1)
Financial overview
| Full year | |||
|---|---|---|---|
| (SEKm) | Q1 2019 | Q1 2018 | 2018 |
| Net sales | 3,727 | 3,452 | 14,568 |
| Organic growth | 5.9% | 6.2% | 3.8% |
| Reported change | 8.0% | 7.3% | 6.5% |
| Operating income - Business segments2) | 317 | 286 | 1,706 |
| Central operations | -43 | -16 | -162 |
| Operating income before IAC | 274 | 271 | 1,544 |
| Items affecting comparability (IAC) | -56 | - | -40 |
| Operating income | 218 | 271 | 1,504 |
| Operating margin before IAC | 7.4% | 7.8% | 10.6% |
| Operating margin | 5.9% | 7.8% | 10.3% |
| Net income | 167 | 216 | 1,292 |
| Basic earnings per share (SEK) | 2.48 | 3.24 | 19.24 |
| Net debt | 4,189 | N/A | 3,944 |
1) 2018 figures included in the calculation of 12 month trailing EBITDA before IAC has 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 segments operating income.
Alternative performance measures used in this report are explained and reconciled on pages 20-22.
Reading notes:
The information in this report consists of the combined financial statements for 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, and no pro forma information is 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 from 1 July 2018. The net debt of NENT Group for historic periods in this report refers to the net funding from MTG in the cash pool less total cash. NENT has applied the new accounting standard IFRS 16 Leases as from 1 January 2019. See Accounting policies on page 10 for more information.
President & CEO's comments
"Our first quarterly report as a listed company is a clear indication of the strength and relevance of our strategy. We have reported continued profitable revenue growth and healthy Viaplay subscriber intake."
Q1 was a historic quarter for NENT. We set our purpose and values, published our prospectus, held our first capital markets day, met a wide range of investors, and listed our shares on Nasdaq Stockholm. This was all achieved while at the same time growing our sales, profits and subscriber base.
This is possible because of the efforts of the greatest asset we have - our world class team. We are continuing to build a company that is very well positioned to benefit from technological innovation and the changes in consumer behaviour. We are well on our way to be the leading streamed entertainment provider in the Nordics, and a Nordic storyteller appealing to global audiences.
NENT is a unique play on the Nordic streaming market. Scaling Viaplay is the best way to drive long-term shareholder value, and we intend to do so while continuing to deliver profitable growth.
Our debut quarterly report as a separately listed company saw organic sales up 6%, segmental operating income up 11% and the addition of 99k Viaplay paying subscribers. Operating income before IAC was up marginally as we now have the higher central operating costs of being a standalone and listed company, which will impact fully in Q2.
Our Broadcasting & Streaming operations delivered 7% top and bottom line growth. Subscription & Other sales, which accounted for 63% of group sales, were up 9% due to high Viaplay subscriber growth as well as the sale of selective content rights to third
parties. Advertising sales, which accounted for 26% of group sales, were up 2% with healthy sales growth in both Viafree and Swedish Radio offset by softer ad markets in Norway.
We have recently announced a number of important pan-Nordic content agreements such as the exclusive coverage of Alpine and Cross Country skiing from 2021, IndyCar racing until 2021, the Open golf championship until 2024, as well as movies and series from MGM and NBCU. We have also announced 9, and premiered 3, new Viaplay Originals and will premiere at least 20 this year. We have also signed a series of large scale and long-term strategic distribution partnerships in Denmark.
NENT Studios sales were up 28%, which accounted for 11% of group sales, following the higher scripted production volumes and the operating loss was significantly reduced in what is a seasonally weak quarter.
NENT Group remains very well positioned to drive and benefit from the shift to ondemand and online viewing. Our content offering is unrivaled and is getting even stronger. It is monetised across multiple platforms and windows, and makes NENT a formidable local Nordic leader and challenger to global competition.
Anders Jensen President & CEO
Significant events in and after the quarter
8 January – FilmNation and NENT Group to launch joint venture in the UK
FilmNation Entertainment and NENT Group announced the formation of a new UK-based television joint venture, which will operate under the FilmNation brand. The joint venture will develop, produce and finance premium scripted television content for global audiences, and is currently assembling its creative team.
23 January – NENT Group to show IndyCar racing for next three seasons
NENT Group has acquired the exclusive Nordic media rights to the NTT IndyCar Series until 2021. Every race will be shown live on the Viaplay streaming service and Viasat pay-TV channels, with selected races also available on NENT Group's free-TV channels.
6 March – NENT Group and Boxer extend distribution agreement in Denmark
NENT Group and Danish digital TV distributor Boxer have extended their distribution partnership in Denmark for several additional years. Starting later this year, NENT Group's Viaplay streaming service will reach more households as part of Boxer's largest TV package, while Boxer will continue to distribute NENT Group's Danish free-TV channels. The agreement reflects NENT Group's ongoing focus on distribution partnerships that increase the reach of Viaplay across the Nordic region.
8 March – NENT Group published listing prospectus
NENT Group published a prospectus regarding the admission to trading of its class A and class B shares on Nasdaq Stockholm.
11 March – NENT Group signed new distribution partnerships with YouSee and Stofa
NENT Group has extended its distribution agreements with YouSee and Stofa, the two largest TV distributors in Denmark, on a long-term basis. The renewed partnerships include NENT Group's Viaplay streaming service and TV3 channels, and reflect NENT Group's strategic focus on distribution deals that broaden the reach of its streaming services and broadcast channels across the Nordic region.
11 March – NENT Group and NBCUniversal extend exclusive content partnership
NENT Group and NBCUniversal (NBCU) have extended their long-term exclusive content partnership in a multi-year deal. New films from NBCU will reach viewers in Sweden, Norway, Denmark and Finland first on NENT Group's Viaplay streaming service and Viasat pay-TV channels, along with an extensive range of popular NBCU library titles. A broad selection of NBCU's TV series will also be available on NENT Group's free-TV channels.
11 March – NENT Group and MGM agreed multi-year content and distribution deal
NENT Group and Metro Goldwyn Mayer (MGM) have entered into a three year deal that secures the library of MGM's greatest movie hits and an exciting range of new MGM Television series for NENT Group's Viaplay streaming service and Viasat pay-TV channels. The deal also includes an agreement that MGM will co-produce and globally distribute three NENT Group original productions outside Scandinavia.
12 March – NENT Group and YouSee enter Premier League agreement
NENT Group and YouSee has signed agreement for 116 Premier League matches to be broadcast live on YouSee's TV channel Xee every season from August 2019 until 2022. 116 additional matches will be broadcast on NENT Group's TV3 channels every year and all 232 live games will be streamed on Viaplay.
13 March – NENT Group establishes medium term note programme
NENT Group announced that it had established a medium term note programme (MTN Programme). NENT Group is now able to issue notes up to SEK 4 billion to the Swedish capital market, in either SEK or EUR, and with a minimum tenure of one year.
28 March – NENT Group shares started trading on Nasdaq Stockholm
NENT Group class A (NENT A) and class B (NENT B) shares was listed on Nasdaq Stockholm. The listing of NENT Group followed the decision to split MTG (Modern Times Group MTG AB (publ)) into two separate companies.
2 April – NENT Group appoints Cecilia Gave as Head of Viafree
NENT Group has appointed Cecilia Gave as SVP & Group Head of Viafree, NENT Group's leading pan-Nordic advertising funded streaming service. Cecilia joins the Group Executive Management team and reports to NENT Group President and CEO Anders Jensen. Cecilia joined NENT Group in 2016 as Chief Operating Officer NENT Sports Sweden.
11 April – NENT Group to be home of Alpine and Nordic winter sports
NENT Group has acquired the exclusive Nordic media rights to a comprehensive range of the world's leading winter sports competitions from Infront Sports & Media. The landmark five-year deal secures the hugely popular FIS Alpine Ski World Cup and FIS Cross Country World Cup and much more from 2021, and reinforces NENT Group's position as the unrivalled home of the very best sports experiences in the Nordic region.
24 April – NENT Group to show The Open golf for next six years
NENT Group has extended the exclusive Nordic rights to The Open golf championship until the end of 2024. NENT Group holds the Nordic rights to three of the four golf majors – The Open, the US Open and the PGA Championship – along with the Danish rights to the remaining major, the Masters Tournament. NENT Group is also the exclusive Nordic home of the Ladies Professional Golf Association (LPGA) Tour and the European Tour package, which includes the World Golf Championships, the eight Rolex Series competitions and one of the world's most viewed sporting events – the Ryder Cup.
2 May – NENT Group invested in new US production company Picturestart
NENT Group has invested in a minority stake in the new US production company Picturestart together with a range of high profile industry partners. Based in Los Angeles and founded by renowned producer Erik Feig, Picturestart will create, co-finance and produce premium scripted content for young adult viewers around the world.
A full list of announcements and reports can be found at www.nentgroup.com.
Group performance
Net sales
Net sales were up 8.0% to SEK 3,727m (3,452) following 5,9% organic growth and a 2.1% FX contribution.
Operating income and items affecting comparability
Operating income for the business segments increased by 11% to SEK 317m (286). Operating income before IAC increased slightly to SEK 274m (271) as higher profits in the operating segments was largely offset by higher central operations costs, which will increase further in Q2 now that NENT Group has become a standalone and separately listed company since the end of March. Items affecting comparability amounted to SEK -56m (-) and comprised transaction costs to separate and list NENT Group. See page 21 for a comprehensive list of items affecting comparability.
Net financials and net income
Net interest and other financial items totaled SEK 3m (15). Net interest amounted to SEK -4m (-11), whereof -5m (-) related to interest on leasing liabilities. NENT Group was financed by MTG up until the listing when this was replaced with external financing which lead to low financing cost for the quarter. Other financial items amounted to SEK 7m (26) and mainly comprised the impact of exchange rate differences on financial items.
Total tax amounted to SEK -54m (-69). Net income amounted to SEK 167m (216), and basic earnings per share totaled SEK 2.48 (3.24).
Net sales and operating income Rolling twelve months (SEKm)
Segmental performance
Broadcasting & Streaming
| Full year | |||
|---|---|---|---|
| (SEKm) | Q1 2019 | Q1 2018 | 2018 |
| Net sales | 3,337 | 3,120 | 12,800 |
| of which advertising | 964 | 946 | 4,017 |
| of which subscription & other | 2,373 | 2,174 | 8,783 |
| Operating expenses | -3,006 | -2,810 | -11,139 |
| Operating income | 331 | 310 | 1,661 |
| Operating margin | 9.9% | 9.9% | 12.9% |
| Net sales growth y-o-y | 7.0% | 7.2% | 7.0% |
| Organic growth | 5.2% | 6.2% | 4.5% |
| Acquisitions/divestments | - | - | - |
| Changes in FX rates | 1.7% | 1.0% | 2.5% |
Sales were up 7% on an organic basis and driven by the continued growth of Viaplay and the Swedish radio business as well as content sublicensing deals. Operating expenses were also up and reflected the ongoing investments in the scaling of the streaming services and investments to capitalise on new radio licenses in Sweden. Operating income amounted to SEK 331m (310), with an operating margin of 9.9%. (9.9).
Net sales and operating income Rolling twelve months (SEKm)
Advertising
Advertising sales were up 2% on a reported basis. Free-TV advertising sales were down as higher advertising prices was more than offset by lower linear viewing levels and softer advertising markets. The Swedish, Danish and Norwegian TV advertising markets are estimated to have declined. NENT Group's Norwegian and Swedish TV audience shares were up while the Danish share was slightly down.
Radio advertising sales were up as strong growth in the Swedish business more than compensated for weak performance in the Norwegian business. The Swedish radio market is estimated to have grown, while the Norwegian market is estimated to have declined. NENT Group's Swedish radio audience share increased significantly while the Norwegian share was slightly down.
Viafree sales were up driven by improved sold-out ratios.
Subscription & other
Total subscriber base
Subscription & other sales were up 9% on a reported basis driven by Viaplay, the Swedish broadband-TV business and the above-mentioned content licensing deals. The total subscriber base was up y-o-y (year over year) and q-o-q (quarter over quarter). Viaplay reported a net addition of 99k customers compared to Q4'18 and ended the period with 1,357k subscribers, which represented 59% (55) of the total subscriber base. The Viasat subscriber base (direct-to-consumer and third party) decreased by 7k q-o-q to 953k as growth in the broadband-TV was offset the decline in the satellite base.
Viaplay subscriber base (thousands)
NENT Studios
| Full year | |||
|---|---|---|---|
| (SEKm) | Q1 2019 | Q1 2018 | 2018 |
| Net sales | 451 | 352 | 1,911 |
| Operating expenses | -465 | -376 | -1,866 |
| Operating income | -14 | -24 | 45 |
| Operating margin | -3.1% | -6.8% | 2.4% |
| Net sales growth y-o-y | 28.3% | 0.8% | -3.8% |
| Organic growth | 22.9% | -0.6% | -7.3% |
| Acquisitions/divestments | - | 0.2% | 0.1% |
| Changes in FX rates | 5.4% | 1.2% | 3.4% |
Sales were up 23% on an organic basis, following strong growth in scripted drama productions. The production pipeline has been very promising for some time but the reported growth has been impacted by projects being pushed forward from 2018 to 2019. Splay One delivered another quarter of double digit sales growth as interest in branded content and digital campaigns continues to be very healthy. Non-scripted sales were broadly stable.
Q1 is a seasonally weak quarter but the operating loss decreased to SEK -14m (-24), with an operating margin of -3.1% (-6.8).
Net sales and operating income
(SEKm)
Net sales and operating income
Rolling twelve months (SEKm)
Financial review
Cash flow
Cash flow from operations
Cash flow from operations before changes in working capital amounted to SEK 245m (292). Depreciation and amortisations totalled SEK 80m (43). The Group reported a SEK -405m (-650) change in working capital, which reflected normal seasonal patterns but with some positive timing differences in both receivables and payables between quarters. Net cash flow from operations totalled SEK -157m (-358).
Investing activities
Capital expenditure on tangible and intangible assets totalled SEK -32m (-44). Total cash flow relating to investing activities amounted to SEK -33m (-59).
Financing activities
Cash flow from financing activities amounted to SEK 466m (432). In connection with the listing all intragroup financing from MTG (amounting to SEK 4,372m at year end 2018) was refinanced and settled. The group has utilised SEK 1,600m of the 4.0bn multicurrency revolving facility, a SEK 1,000m syndicated term bank loan facility (bridge loan) and issued SEK 1,163m of commercial papers. The total cash from these short-term borrowings amounted to SEK 3,762m. The SEK 4,372m in intragroup financing at year end 2018 was further settled by means of capital contributions from MTG totalling SEK 620m. In connection to the listing NENT also took over an outstanding bond amounting to SEK 501m from MTG which matures in Q3 2020. The Group expects to issue between SEK 1-1.5bn of bonds under the MTN program before year-end to replace short-term financing.
The net change in cash and cash equivalents amounted to SEK 276m (15) and the Group had cash and cash equivalents of SEK 731m (103) at the end of the period.
Net debt
The Group's total net debt position amounted to SEK 4,189m (N/A) at the end of the period. The net debt consisted of financial net debt amounting to SEK 3,532m (N/A) including cash and cash equivalents of SEK 731m (103) and lease liabilities net of sublease receivables amounting to SEK 657m (-). The reporting of lease liabilities and the sublease receivables is a result of the new accounting standard IFRS 16 Leases which is described in more detail in Accounting policies on page 10.
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 founded during June 2018 due to the split of MTG.
| Full year | |||
|---|---|---|---|
| (SEKm) | Q1 2019 | Q1 2018 | 2018 |
| Net sales | 7 | - | - |
| Net interest and other financial items | -10 | - | 6 |
| Income before tax and appropriations | -86 | - | -124 |
Other information
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 (NENT Group) comprised 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 represent in 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 have been applied in 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 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 (sub-let) 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 short-term, 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 631m and a receivable related to subleases amounting to SEK 240m are recognised in the 31 March balance sheet. A leasing obligation amounting to SEK 897m 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 Q1 financial statement and key ratios.
| Q1 2019 | Q1 2019 | ||
|---|---|---|---|
| without | Impact | with | |
| (SEKm) | IFRS 16 | IFRS 16 | IFRS 16 |
| Operating income | 213 | 5 | 218 |
| IAC | -56 | - | -56 |
| Operating income before IAC | 269 | 5 | 274 |
| Amortisation and depreciation | 54 | 26 | 80 |
| EBITDA | 323 | 30 | 353 |
| Financial net | 26 | -5 | 21 |
| Operating margin before IAC (%) | 7.3% | 0.1% | 7.4% |
| Operating margin (%) | 5.8% | 0.1% | 5.9% |
| Right of use assets | - | 631 | 631 |
| Sublease receivables | - | 240 | 240 |
| Total assets related to leasing | - | 871 | 871 |
| Right of use assets | - | 631 | 631 |
| Capital employed related to leasing | - | 631 | 631 |
| Lease liability | - | 897 | 897 |
| Sublease recievables | - | 240 | 240 |
| Net debt related to leasing | - | 657 | 657 |
| Total assets | 13,053 | 871 | 13,924 |
| Capital employed | 5,062 | 631 | 5,693 |
| Net debt | 3,532 | 657 | 4,189 |
Risk & uncertainties
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 more detail 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, 7 May 2019
Anders Jensen President & CEO
This report has not been reviewed by the Group's auditors.
Consolidated income statement
| Full year | |||
|---|---|---|---|
| (SEKm) | Q1 2019 | Q1 2018 | 2018 |
| Net sales | 3,727 | 3,452 | 14,568 |
| Cost of goods and services | -2,489 | -2,393 | -9,805 |
| Gross income | 1,239 | 1,059 | 4,763 |
| Selling expenses | -266 | -212 | -857 |
| Administrative expenses | -726 | -592 | -2,387 |
| Other operating income | 31 | 1 | 44 |
| Other operating expenses | -4 | 15 | -17 |
| Share of earnings in associated companies and joint ventures | - | - | -3 |
| Items affecting comparability | -56 | - | -40 |
| Operating income | 218 | 271 | 1,504 |
| Interest income | 3 | 2 | 11 |
| Interest expenses | -3 | -13 | -48 |
| Leasing net interest | -5 | - | - |
| Other financial items | 7 | 26 | -15 |
| Income before tax | 221 | 285 | 1,452 |
| Tax | -54 | -69 | -160 |
| Net income for the period | 167 | 216 | 1,292 |
| ITEMS THAT ARE OR MAY BE RECLASSIFIED TO PROFIT OR LOSS NET OF TAX Currency translation differences Cash flow hedge Other comprehensive income for the period |
66 48 114 |
81 34 115 |
46 68 114 |
| Total comprehensive income for the period | 280 | 331 | 1,406 |
| NET INCOME FOR THE PERIOD ATTRIBUTABLE TO Equity holders of the parent company Non-controlling interest |
167 - |
216 - |
1,286 6 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO | |||
| Equity holders of the parent company Non-controlling interest |
280 - |
331 - |
1,400 6 |
| EARNINGS PER SHARE | |||
| Basic earnings per share (SEK) Diluted earnings per share (SEK) |
2.48 2.47 |
3.24 3.21 |
19.24 19.09 |
| NUMBER OF SHARES1) | |||
| Shares outstanding at the end of the period | 67,342,244 | 66,725,249 | 66,980,902 |
| Basic average number of shares outstanding | 67,089,305 | 66,725,249 | 66,854,133 |
| Diluted average number of shares outstanding | 67,342,244 | 67,276,722 | 67,362,405 |
1) Number of shares in 2018 refers to MTG's number of shares.
Condensed consolidated balance sheet
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| NON-CURRENT ASSETS | |||
| Intangible assets | 3,434 | 3,102 | 3,405 |
| Machinery, equipment and installations | 158 | 145 | 152 |
| Right-of-use assets | 631 | - | - |
| Shares and participations | 22 | 16 | 20 |
| Sublease receivables | 207 | - | - |
| Other long-term receivables | 153 | 144 | 127 |
| Total non-current assets | 4,605 | 3,407 | 3,704 |
| CURRENT ASSETS | |||
| Inventories | 2,916 | 2,514 | 2,428 |
| Accounts receivables | 1,111 | 1,224 | 1,224 |
| Sublease receivables | 33 | - | - |
| Prepaid expense and accrued income | 3,797 | 3,380 | 3,951 |
| Other current assets | 732 | 420 | 467 |
| Cash and cash equivalents | 731 | 103 | 428 |
| Total current assets | 9,319 | 7,642 | 8,498 |
| Total assets | 13,924 | 11,049 | 12,202 |
| EQUITY | |||
| Equity1) | 1,486 | 2,899 | 581 |
| Non-controlling interest Total equity |
16 1,502 |
11 2,910 |
16 597 |
| NON-CURRENT LIABILITIES | |||
| Long-term borrowings1) | 501 | - | - |
| Long-term lease liabilities | 763 | - | - |
| Long-term provisions | 159 | 280 | 171 |
| Other non-current liabilities | 340 | 354 | 324 |
| Total non-current liabilities | 1,764 | 634 | 495 |
| CURRENT LIABILITIES | |||
| Short-term borrowings1) | 3,762 | - | - |
| Short-term lease liabilities | 134 | - | - |
| Short-term provisions | 146 | 192 | 138 |
| Liabilities related to MTG1) | - | 1,530 | 4,373 |
| Other current liabilities | 6,616 | 5,783 | 6,598 |
| Total current liabilities | 10,658 | 7,505 | 11,110 |
| Total liabilities | 12,422 | 8,139 | 11,605 |
| Total shareholders' equity and liabilities | 13,924 | 11,049 | 12,202 |
1) 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. See Financial review on page 9 for more information.
Consolidated statement of cash flow
| Full year | |||
|---|---|---|---|
| (SEKm) | Q1 2019 | Q1 2018 | 2018 |
| Net income for the period | 167 | 216 | 1,292 |
| Depreciations, amortisations and write-downs | 80 | 43 | 208 |
| Other adjustments for non-cash items | -2 | 33 | -5 |
| Cash flow from operations | 245 | 292 | 1,496 |
| Changes in working capital | -402 | -650 | -380 |
| Net cash flow from/to operations | -157 | -358 | 1,116 |
| Acquisitions of operations | - | -4 | -19 |
| Divestments of operations | - | - | - |
| Capital expenditures in tangible and intangible assets | -32 | -44 | -550 |
| Other investing activities | -1 | -11 | 2 |
| Cash flow from/used in investing activities | -33 | -59 | -567 |
| New long-term borrowings | 501 | - | - |
| New short-term borrowings | 3,762 | - | - |
| Amortisation of lease recievables | 8 | - | - |
| Amortisation of lease liabilities | -37 | - | - |
| Change in financing to/from MTG | -4,474 | 391 | 3,171 |
| Shareholders' contribution | 620 | - | - |
| Dividends to shareholders | - | - | -3,310 |
| Other cash flow from/to financing activities | 85 | 41 | -70 |
| Cash flow from/used in financing activities | 466 | 432 | -209 |
| Total net change in cash and cash equivalents for the period | 276 | 15 | 339 |
| Cash and cash equivalents at the beginning of the period | 428 | 89 | 89 |
| Translation differences in cash and cash equivalents | 27 | - | - |
| Cash and cash equivalents at end of the period | 731 | 103 | 428 |
Consolidated statement of changes in equity
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| Opening balance | 597 | 2,573 | 2,573 |
| Net income for the period | 167 | 216 | 1,292 |
| Other comprehensive income for the period | 114 | 115 | 114 |
| Total comprehensive income for the period | 280 | 331 | 1,406 |
| Effect of employee share programmes | 5 | 7 | 20 |
| Shareholders' contribution | 620 | - | 2,000 |
| Other transactions with shareholders | - | - | -5,400 |
| Dividends to non-controlling interests | - | - | -1 |
| Closing balance | 1,502 | 2,910 | 597 |
Parent company income statement
| Full year | ||||
|---|---|---|---|---|
| (SEKm) | Q1 2019 | Q1 2018 | 2018 | |
| Net sales | 7 | - | - | |
| Gross income | 7 | - | - | |
| Administrative expenses | -47 | - | -145 | |
| Other operating income | - | - | 15 | |
| Other operating expenses | -1 | - | - | |
| Items affecting comparability | -56 | - | - | |
| Operating income | -97 | - | -130 | |
| Net interest and other financial items | -10 | - | 6 | |
| Income before tax and appropriations | -86 | - | -124 | |
| Group contribution | - | - | 124 | |
| Income before tax | -86 | - | - | |
| Tax | 19 | - | - | |
| Net income for the period | -68 | - | - | |
| Other comprehensive income for the period | - | - | - | |
| Total comprehensive income for the period | -68 | - | - |
Parent company condensed balance sheet
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| NON-CURRENT ASSETS | |||
| Intangible assets | - | - | 1 |
| Financial assets | 102 | - | - |
| Total non-current assets | 102 | - | 1 |
| CURRENT ASSETS | |||
| Receivables from group companies | 8,666 | - | 13,056 |
| Other current receivables | 263 | - | 267 |
| Cash, cash equivalents and short-term investments | 531 | 1 | - |
| Total current assets | 9,460 | 1 | 13,326 |
| Total assets | 9,562 | 1 | 13,327 |
| SHAREHOLDERS' EQUITY | |||
| Restricted equity | 1 | 1 | 1 |
| Non-restricted equity | 1,940 | - | 2,007 |
| Total equity | 1,940 | 1 | 2,008 |
| NON-CURRENT LIABILITIES | |||
| Long-term borrowings | 501 | - | - |
| Total non-current liabilities | 501 | - | - |
| CURRENT LIABILITIES | |||
| Short-term borrowings | 3,762 | - | 73 |
| Liabiltities to group companies | 3,032 | - | 11,201 |
| Other current liabilities | 327 | - | 45 |
| Total current liabilities | 7,121 | - | 11,319 |
| Total shareholders' equity and liabilities | 9,562 | 1 | 13,327 |
Net sales – external & internal
| Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |
|---|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 |
| Broadcasting & Streaming | 3,003 | 2,819 | 3,228 | 11,960 | 3,118 | 3,290 | 2,981 | 3,394 | 12,785 | 3,322 |
| Studios | 412 | 500 | 490 | 1,703 | 329 | 423 | 455 | 562 | 1,769 | 404 |
| Central operations | 6 | 7 | 6 | 26 | 4 | 5 | 3 | 3 | 13 | 1 |
| Total sales external customers | 3,421 3,326 3,724 13,688 3,452 | 3,719 3,439 3,959 14,568 | 3,727 | |||||||
| Broadcasting & Streaming | - | - | - | 2 | 2 | 2 | 4 | 9 | 15 | 15 |
| Studios | 97 | 68 | 71 | 283 | 23 | 53 | 25 | 42 | 142 | 47 |
| Central operations | 35 | 33 | 33 | 136 | 23 | 18 | 10 | 19 | 71 | 16 |
| Total sales between segments | 132 | 101 | 104 | 420 | 47 | 72 | 39 | 69 | 228 | 78 |
Net sales by segment
| Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |
|---|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 |
| Broadcasting & streaming | 3,003 | 2,819 | 3,229 | 11,961 | 3,120 | 3,292 | 2,985 | 3,403 | 12,800 | 3,337 |
| of which advertising | 993 | 805 | 1,080 | 3,759 | 946 | 1,078 | 823 | 1,171 | 4,017 | 964 |
| of which subscription & other | 2,010 | 2,014 | 2,149 | 8,202 | 2,174 | 2,214 | 2,162 | 2,232 | 8,783 | 2,373 |
| Studios | 508 | 568 | 561 | 1,986 | 352 | 476 | 480 | 603 | 1,911 | 451 |
| Central operations | 41 | 40 | 38 | 162 | 27 | 23 | 12 | 22 | 84 | 17 |
| Eliminations | -132 | -101 | -104 | -420 | -47 | -72 | -39 | -69 | -228 | -78 |
| Total | 3,421 3,326 3,724 13,688 3,452 | 3,719 3,439 3,959 14,568 | 3,727 |
Operating income by segment
| Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |
|---|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 |
| Broadcasting & Streaming | 465 | 301 | 509 | 1,574 | 310 | 498 | 321 | 532 | 1,661 | 331 |
| Studios | 12 | 38 | 21 | 44 | -24 | 9 | 34 | 26 | 45 | -14 |
| Business segments | 477 | 338 | 530 | 1,617 | 286 | 508 | 355 | 557 | 1,706 | 317 |
| Central operations | -20 | -24 | -39 | -123 | -16 | -44 | -56 | -47 | -162 | -43 |
| Total operating income before IAC | 457 | 314 | 491 | 1,495 | 271 | 464 | 299 | 511 | 1,544 | 274 |
| Items affecting comparability | - | - | 75 | 75 | - | -48 | 3 | 5 | -40 | -56 |
| Total | 457 | 314 | 566 | 1,570 | 271 | 415 | 303 | 516 | 1,504 | 218 |
Group & segment performance data
| Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | 2018 | 2019 | |
| GROUP | ||||||||||
| Sales growth | 8.6% | 4.2% | 1.9% | 6.1% | 7.3% | 8.7% | 3.4% | 6.4% | 6.5% | 8,0% |
| of which organic growth - |
6.4% | 4.2% | 2.8% | 5.4% | 6.2% | 5.8% | -0.5% | 3.7% | 3.8% | 5.9% |
| of which acquisitions/divestments - |
- | 0.1% | 0.1% | - | - | 0.1% | - | - | - | - |
| of which changes in FX rates - |
2.2% | - | -1.0% | 0.7% | 1.1% | 2.9% | 3.9% | 2.8% | 2.7% | 2.1% |
| Operating margin before IAC | 13.4% | 9.4% | 13.2% | 10.9% | 7.8% | 12.5% | 8.7% | 13.4% | 10.7% | 7.4% |
| Net debt (SEKm) | - | - | - | - | - | - | - 3,944 | - | 4,189 | |
| Net debt/EBITDA 12 months trailing | - | - | - | - | - | - | - | 2.3 | - | 2.2 |
| BROADCASTING & STREAMING | ||||||||||
| Organic sales growth | 8.4% | 3.2% | 4.5% | 6.6% | 6.2% | 6.9% | 2.2% | 3.0% | 3.8% | 5.2% |
| Operating margin before IAC | 15.5% | 10.7% | 15.8% | 13.2% | 9.9% | 15.1% | 10.8% | 15.6% | 13.0% | 9.9% |
| CSOV Sweden (15-49) | 24.1 | 24.6 | 22.2 | 24.1 | 23.1 | 23.9 | 23.1 | 23.6 | 23.4 | 23.6 |
| CSOV Norway (15-49) | 17.6 | 15.3 | 15.4 | 15.5 | 15.1 | 15.9 | 13.5 | 17.7 | 15.6 | 17.0 |
| CSOV Denmark (15-49) | 24.6 | 23.1 | 23.6 | 23.6 | 21.4 | 24.6 | 21.6 | 23.4 | 22.7 | 21.1 |
| CSOL Sweden (12-79) | 39.6 | 40.3 | 43.4 | 40.3 | 38.0 | 40.4 | 42.8 | 41.9 | 40.9 | 45.6 |
| CSOL Norway (12+) | 69.6 | 67.9 | 66.8 | 68.3 | 66.0 | 67.1 | 71.3 | 68.5 | 68.2 | 65.2 |
| Subscriber base ('000s) | 1,964 | 2,001 2,046 | - | 2,173 | 2,130 | 2,111 | 2,218 | - | 2,310 | |
| of which Viaplay - |
1,007 | 1,062 | 1,108 | - | 1,202 | 1,177 | 1,166 | 1,258 | - | 1,357 |
| of which, Viasat direct-to-consumer1) - |
519 | 517 | 510 | - | 505 | 498 | 496 | 493 | - | 490 |
| of which, Viasat 3rd party - |
437 | 422 | 428 | - | 466 | 455 | 449 | 466 | - | 463 |
| STUDIOS | ||||||||||
| Organic sales growth | 3.9% | 15.1% | -0.1% | 4.2% -0.6% -10.0% -19.8% | 3.6% | -7.3% 22.9% | ||||
| Operating margin before IAC | 2.5% | 6.6% | 3.7% | 2.2% -6.8% | 1.9% | 7.1% | 4.3% | 2.4% | -3.1% |
1) Satellite and broadband subscribers where Viasat has a direct relationship with the customer
Disaggregation of revenues
| Broadcasting | Central | |||||||
|---|---|---|---|---|---|---|---|---|
| & Streaming | Studios | operations | Total | |||||
| Q1 (SEKm) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 |
| REVENUE STREAMS | ||||||||
| Advertising | 964 | 946 | 18 | 28 | - | - | 982 | 974 |
| Subscription | 2,107 | 2,015 | - | - | - | - | 2,107 | 2,015 |
| Production | 4 | 39 | 303 | 241 | - | - | 308 | 280 |
| Licenses, royalty and other | 247 | 119 | 83 | 60 | 1 | 4 | 331 | 184 |
| Total | 3,322 | 3,118 | 404 | 329 | 1 | 4 | 3,727 | 3,452 |
| TIMING OF REVENUE RECOGNOTION | ||||||||
| at a point in time | 247 | 119 | 83 | 60 | 1 | 4 | 331 | 184 |
| over time | 3,075 | 2,999 | 321 | 269 | - | - | 3,396 | 3,268 |
| Total | 3,322 | 3,118 | 404 | 329 | 1 | 4 | 3,727 | 3,452 |
| Broadcasting | Central | |||
|---|---|---|---|---|
| & Streaming | Studios | operations | Total | |
| Full year (SEKm) | 2018 | 2018 | 2018 | 2018 |
| REVENUE STREAMS | ||||
| Advertising | 4,017 | 172 | - | 4,189 |
| Subscription | 8,272 | - | - | 8,272 |
| Production | 61 | 1,321 | - | 1,382 |
| Licenses, royalty and other | 436 | 276 | 13 | 725 |
| Total | 12,785 | 1,769 | 13 | 14,568 |
| TIMING OF REVENUE RECOGNOTION | ||||
| at a point in time | 436 | 276 | 13 | 725 |
| over time | 12,350 | 1,493 | - | 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.
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 is using the following Alternative Performance Measures:
- Change in net sales from Organic growth, Acquisitions/divestments and Changes in FX rates
- Operating income & margin before IAC
- 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
| Full | ||||||
|---|---|---|---|---|---|---|
| Q1 | Q1 | Year | ||||
| (SEKm) | 2019 | % | 2018 | % | 2018 | % |
| BROADCASTING & STREAMING | ||||||
| Organic growth | 162 | 5,2% | 179 | 6.2% | 543 | 4.5% |
| Acquisitions/divestments | - | - | - | - | - | - |
| Changes in FX rates | 55 | 1,7% | 30 | 1.0% | 295 | 2.5% |
| Reported change | 217 | 7.0% | 209 | 7.2% | 839 | 7.0% |
| STUDIOS | ||||||
| Organic growth | 80 | 22.9% | -2 | -0.6% | -145 | -7.3% |
| Acquisitions/divestments | - | - | 1 | 0.2% | 3 | 0.1% |
| Changes in FX rates | 19 | 5.4% | 4 | 1.2% | 68 | 3.4% |
| Reported change | 100 28.3% | 3 | 0.8% | -75 | -3.8% | |
| GROUP | ||||||
| Organic growth | 202 | 5,9% | 199 | 6.2% | 518 | 3.8% |
| Acquisitions/divestments | - | - | 1 | - | 3 | - |
| Changes in FX rates | 73 | 2.1% | 34 | 1.1% | 363 | 2.7% |
| Reported change | 275 | 8.0% | 234 | 7.3% | 883 | 6.5% |
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 likefor-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
| Q1 | Q1 | Full year | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| Operating income | 218 | 271 | 1,504 |
| Items affecting comparability | -56 | - | -40 |
| Operating income before items affecting comparability | 274 | 271 | 1,544 |
Items affecting comparability
| Q1 | Q1 | Full year | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| Costs related to the separation and listing of NENT Group | -56 | - | - |
| Impairment of receivables and content | - | - | -16 |
| Restructuring NENT Group | - | - | -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 |
| Total | -56 | - | -40 |
Items affecting comparability classified by function
| Q1 | Q1 | Full year | |
|---|---|---|---|
| (SEKm) | 2019 | 2018 | 2018 |
| Administrative expenses | -56 | - | -53 |
| Other operating income | - | - | 35 |
| Other operating expenses | - | - | -22 |
| Total | -56 | - | -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. 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 | |
|---|---|---|
| (SEKm) | 2018 | 2019 |
| Short-term borrowings | - | 3,762 |
| Liabilities related to MTG | 4,373 | - |
| Short-term borrowings | 4,373 | 3,762 |
| Long-term borrowings | - | 501 |
| Total financial borrowings | 4,373 | 4,263 |
| Cash and cash equivalents | 428 | 731 |
| Financial net debt | 3,944 | 3,532 |
| Total lease liabilities | - | 897 |
| Total sublease receivables | - | 240 |
| Lease liabilities net of sublease receivables | - | 657 |
| Net debt | 3,944 | 4,189 |
Net debt/EBITDA before IAC, ratio 12 months trailing
| Q4 | Q1 |
|---|---|
| (SEKm) 2018 |
2019 |
| Operating income before IAC1) 1,544 |
1,562 |
| Depreciation and amortisation1) 201 |
315 |
| EBITDA before IAC last 12 months 1,745 |
1,877 |
| 3,944 Net debt |
4,189 |
| Total net debt / EBITDA before IAC ratio 12 month trailing 2.3 |
2.2 |
1) 2018 figures included in the calculation of 12 month trailing EBITDA before IAC has been adjusted for the estimated effect as if IFRS 16 had been applied for the full period. The 12 month trailing Operating income before IAC has been adjusted for interest on leases with SEK 14m from SEK 1,548m to SEK 1,562m. The 12 month trailing Depreciation and amortisation has been adjusted for depreciation on leases with SEK 77m from SEK 238m to SEK 315m. EBITDA last 12 months has been adjusted in total with SEK 91m.
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 non-interest-bearing. Capital employed thus equals the sum of equity and net debt.
| Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
|---|---|---|---|---|---|---|---|
| (SEKm) | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | 2019 1) |
| Inventory | 2,130 | 2,042 | 2,514 | 2,278 | 2,387 | 2,428 | 2,916 |
| Accounts receivables | 1,086 | 1,017 | 1,224 | 1,158 | 1,187 | 1,224 | 1,111 |
| Prepaid expense and accrued income | 3,059 | 3,517 | 3,380 | 3,566 | 3,285 | 3,951 | 3,797 |
| Other current assets | 282 | 422 | 420 | 799 | 590 | 468 | 732 |
| Other current liabitlities | -5,577 | -5,940 | -5,783 | -6,287 | -5,834 | -6,598 | -6,616 |
| Total working capital | 980 | 1,056 | 1,756 | 1,513 | 1,614 | 1,471 | 1,940 |
| Intangibles assets | 3,055 | 3,036 | 3,101 | 3,128 | 3,462 | 3,404 | 3,434 |
| Machinery, equipment and installations | 125 | 120 | 145 | 159 | 150 | 152 | 158 |
| Right-of-use assets | - | - | - | - | - | - | 631 |
| Shares and participations | 25 | 24 | 16 | 23 | 22 | 20 | 22 |
| Other long term receivables | 157 | 137 | 144 | 154 | 162 | 127 | 153 |
| Provisions | -404 | -438 | -472 | -474 | -426 | -309 | -305 |
| Other non-current liabilities | -458 | -342 | -354 | -351 | -342 | -324 | -340 |
| Other items included in the capital employed | 2,500 | 2,537 | 2,581 | 2,639 | 3,028 | 3,071 | 3,753 |
| Capital employed | 3,480 | 3,594 | 4,337 | 4,151 | 4,640 | 4,541 | 5,693 |
| Average capital employed (5 quarters) | N/A | 3,143 | 3,446 | 3,649 | 4,015 | 4,229 | 5,177 |
| Operating income before IAC 12 months trailing | N/A | 1,495 | 1,533 | 1,539 | 1,525 | 1,544 | 1,562 |
| ROCE % | N/A | 47.5% | 44.5% | 42.2% | 38.0% | 36.5% | 29,9% |
Return on Capital Employed (ROCE)
1 ) 2018 figures included in the calculation of 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. The Average capital employed has been adjusted for Right-of-use assets with SEK 505m from SEK 4,672m to SEK 5,177m. The 12 month trailing Operating income before IAChas been adjusted for interest on leases with SEK 14m from SEK 1,548m to SEK 1,562m.
Definitions
Capital employed
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, 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.
Items Affecting Comparability
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 like-for-like basis.
Net debt
Net debt is the sum of short- and long-term 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.
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
2019 Annual General Meeting
The 2019 Annual General Meeting will be held on Wednesday 22 May 2019 in Stockholm.
The Board proposes a dividend of SEK 6.50 per share to be paid out to the shareholders in two equal instalments of SEK 3.25 each. The total proposed cash dividend amounts to approximately SEK 438m. The Board of Directors intends to further propose that the remainder of the Group's retained earnings for the year 2018 be carried forward into the 2019 accounts. The proposal is in line with the dividend policy for NENT Group that was communicated previously.
Financial calendar 2019
2019 Annual General Meeting 22 May Q2 interim report 18 July Q3 interim report 24 October
Questions?
[email protected] (or Tobias Gyhlénius, Head of Public Relations; +46 73 699 27 09) [email protected] (or Stefan Lycke, Head of Investor Relations; +46 73 699 27 14)
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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 |
| US: | +1 631 510 74 95 |
The access pin code for the call is 7370699. To listen to the conference call online and for further information, please visit www.nentgroup.com
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 7 May 2019.