2017 sees record earnings again for TV4
The TV4 Group has had another record year, with EBITA of SEK 1,022 million (SEK 734 million in 2016). The record earnings are the result of the consistent investment in Swedish quality content in all genres over the past few years. The TV4 Group’s long-term commitment to ‘Total TV’ – where the way content is consumed is immaterial – has paid dividends. Thanks to TV4 Play’s growth, the total reach of TV4’s TV offering is increasing over time, which is much appreciated by the advertising market. C More grew its SVOD and digital TV revenues, and doubled its subscriber base. Further major investments in technology and content, combined with a slower rate of growth than anticipated, weighed on earnings. C More’s earnings were slightly up on last year, however. MTV in Finland posted a hefty loss in a very challenging market. Bonnier Broadcasting’s overall EBITA rose to SEK 423 million (SEK 373 million in 2016).
“Looking back, 2017 may well be seen as a key turning point for TV4. We’re now seeing how TV4’s total reach is growing over time, since TV4 Play’s growth outweighs the decline in viewing figures for linear TV. We hope we are seeing a sustainable commercial TV business taking shape, as the sharp rise in digital sales also suggests,” says Casten Almqvist, CEO of TV4 and Bonnier Broadcasting.
TV4 Group EBITA for 2017 came in at a record SEK 1,022 million (SEK 734 million in 2016), up almost 40 per cent. The operating margin improved to 23 per cent. These figures reflect a year of major ratings and consumption successes, alongside a positive digital trend.
TV4 Play has more than 3.8 million logged-in users, and accounted for over half of all MMS-monitored AVOD consumption during the year. And TV4 Group linear channels saw their highest-ever share of viewing figures. The digital reach added by TV4 Play is greater than the linear decline in TV channels, so TV4’s total reach is growing over time. Combined with a strong platform-independent advertiser offering, this helped TV4 to achieve record digital and linear sales. Digital sales rose by no less than 74 per cent. Thus, TV4 captured market share in both the linear and the digital market. Sales rose to SEK 4,469 million (SEK 4,314 million).
C More, which for the third year in succession is the fastest-growing SVOD provider, more than doubled its subscriber base, with rising SVOD and digital TV revenues. The first C More original drama offerings generated both new subscriptions and consumption. A new sports channel and a new OTT sports package were successfully launched. Continued major investments in technology and content, along with slower growth than planned, weighed on earnings, although the loss was slightly smaller than the previous year. EBITA came in at SEK -296 million (SEK -307 million).
“C More is moving in the right direction, but not fast enough. We are now upping the pace of our transformation journey even more. Full coordination between C More and TV4 Play enables us to maximise the scope for C More to grow even faster in 2018,” Almqvist comments.
MTV in Finland had a difficult year in a challenging market, with advertising spending continuing to fall. MTV scored major viewing and consumption successes, and was market leader among all commercial target groups. It also launched C More SVOD in Finland. In a very difficult market, MTV reported a loss of SEK 218 million (SEK -56 million in 2016).
Bonnier Broadcasting’s total sales grew to SEK 7,497 million (SEK 7,397 million in 2016).