Record sales and higher earnings for the TV4 Group
TV4 Group grew both earnings and sales in 2012, breaking its sales record in a still buoyant advertising market. Sales rose to SEK 5,885 million, with the group posting operating profit (EBIT) of SEK 577 million. The TV4 Group is also continuing to capture market share in the Swedish commercial TV market.
TV4 Group grew both sales and earnings in 2012. Sales rose by just over 6 per cent to SEK 5,885 million (SEK 5,555 million in 2011), with operating profit (EBIT) improving by 9 per cent to SEK 577 million (SEK 529 million). This represents an operating margin of 10 per cent, bringing a halt to the decline in margin seen in recent years.
"There is a continuing healthy demand for TV advertising, and we have broken our previous sales record. 2012 also saw a breakthrough for TV4 Play. TV4 employees have every reason to be proud that our strategy is working and that we are on the right track. But competition in the Swedish TV market is becoming ever more intense, so we must continue to reinvent ourselves and rationalise. As always, however, TV4 will focus on breadth, diversity and quality, engaging TV for the whole country, on quality journalism and on major entertainment and sports programmes," says Casten Almqvist, CEO of the TV4 Group.
TV4 Group advertising sales reached an all-time high in a TV advertising market where demand for airtime on TV4 Group channels outstripped supply for the third year running. At the same time, according to IRM (the Institute for Advertising and Media Statistics), media reporting monthly saw a decline of 6.1 per cent during the first 11 months of the year. Spending on TV advertising rose by 3.9 per cent during the same period. The TV4 Group did better than the TV market as a whole, accounting for almost 90 per cent of growth, thereby continuing to capture market share.
The TV4 Group made a digital breakthrough in 2012. TV4 Digital Media grew both sales and earnings, having streamlined and focused its operations on fewer services, centred on TV4 Play. This, combined with a number of new advertising products and continuing growth in use, helped TV4 Play to score major successes in advertising sales as well as its TV4 Play Premium pay service.
Total viewing of linear TV in Sweden rose slightly in 2012. Among the main target audience of 12 - 59-year-olds, TV4 remained the most-watched channel, and the TV4 Group as a whole continued to be the media channel group with most viewers, although audience figures were slightly down on 2011, a record year. Sjuan had its best year ever, and is now Sweden's sixth most-watched channel.
C More grew sales and subscriber numbers, and improved its earnings, although the restructuring, start-ups and launches carried out during the year resulted in a loss.
The full annual report is attached as a file, and is also available at tv4gruppen.se.
The TV4 Group has delivered engaging news, major entertainment shows of great variety and quality, live sport and top-class drama to Swedish viewers for more than two decades. In addition to the main TV4 channel, the TV4 Group comprises more than 40 TV channels throughout the Nordic region - in the free-TV, basic cable and premium segments, with C More as the leading pay-TV operator in the Nordic region. The TV4 Group also broadcasts news from 25 local TV stations and has a wide range of other internet, mobile and on-demand services, including TV4 Play, which offers online access to clips, full programmes and all TV4 Group channels live. For more information, visit tv4group.se.