“In a TV market undergoing radical changes, viewers, users and advertisers continue to place their trust in us. This gives us strength to carry on investing in our own future, whatever the platform,” says TV4 Group CEO Casten Almqvist.
TV4 Group operating profit (EBITA) totalled SEK 640 million (SEK 783 million in 2013*), down 18.3 per cent, mainly due to increased investment in the digital transformation including both technical and business development, as well as content. The operating margin was 15.2 per cent (18.6 per cent in 2013).
Sales rose slightly, totalling SEK 4,206 million (SEK 4,204 million). The year saw record national advertising sales, despite a slight decline in linear viewing. Online platform TV4 Play advertising revenues also reached an all-time high, up 35 per cent on the previous year. TV4 has a markedly better target rating point delivery than its competitors, which has enabled it to strengthen its position in the Swedish TV market.
TV4 Play continued to record successes. It accounted for more streaming starts than MTG TV’s and SBS Discovery’s play services combined. Total digital consumption doubled, from 131 to 262 million streaming starts, including YouTube. TV4 Play Premium grew in terms of subscribers, consumption and revenues. Many digital services were launched during the year, including Apple TV, Chromecast and YouTube. Many other initiatives began; these will be launched later in 2015. Traditional TV viewing fell from 159 to 153 minutes per person and day, but TV4’s main channels TV4, Sjuan and TV12 held their positions. TV4 Group is now placing even greater emphasis on Swedish quality content, whatever the genre and platform.
“In 2015 we will invest more in Swedish drama than ever before. We will also increase our investments in news and current affairs as well as in technical and business development on all platforms. We will be launching a number of new services during the year, including a new Bonnier-wide subscription video on demand (SVOD) service and a new video advertising platform”, adds Mr Almqvist.
* In 2014 Bonnier Holding acquired all shares in C More from TV4 and Telenor. C More is therefore not included in earnings, which have been adjusted for items affecting comparability. As of 1 January 2015 C More is part of the Broadcasting division of Bonnier.