TV4 AB has presented its best earnings figures to date, not including C More, thanks in part to strong advertising sales, particularly in the second half of the year, but also due to the optimisation of the rights and channel portfolio carried out during the year.
“For us this presents a golden opportunity to continue our digital transformation. Of course, it is testimony to our success that, more than ever before, viewers and advertisers are attracted to our channels and platforms in a time of ever increasing choice,” says Casten Almqvist, CEO of the TV4 Group.
TV4 Group EBIT in 2013 totalled SEK 648 million (SEK 577 million), up 12.3 per cent on 2012. The operating margin was 10.6 per cent (9.8 per cent in 2012). The falling trend of the past few years, which slowed in 2012, has thus now been reversed. The C More subsidiary continues to operate at a loss, however, having faced further challenges in Denmark and Norway. Net sales are the highest ever presented by the TV4 Group: SEK 6,121 million (SEK 5,885 million in 2012), an increase of 4 per cent.
Advertising sales almost equalled last year’s record level, and grew particularly strongly in the second half, when they surpassed sales figures for 2012. TV4 Play’s advertising sales were particularly robust, with 2013 seeing the launch of several new services, second screen solutions and new programme and advertising formats. Native advertising, mobile advertising breaks and T Commerce scored major successes during the year.
TV4 Play’s success extended not only to the free component funded by advertising – which accounted for two-thirds of the streaming starts registered by Swedish commercial TV operators – but also to the TV4 Play Premium subscriber service. The rapid growth of TV4 Play Premium has made it one of Sweden’s foremost online pay-TV services.
TV4 also achieved its best linear TV shares since 2007, with Sjuan having its best year ever. TV4 also grew its actual viewing figures and the number of TRP (target rating points) delivered to the advertising market, whereas main competitors lost ground.
“We want to offer our viewers and users the best TV experience – whenever they are watching and wherever they are. This is essential if we are to achieve our long-term goal of providing the most-watched TV in Sweden on all platforms. I look forward to an exciting year ahead, when we will be making extensive investments in development and growth,” says Mr Almqvist.
Click here to read the full Yearly Report for the TV4 Group.