Annual and Sustainability Report 2011 - Teracom

Sweden
Sweden is the Group’s first and most mature market. The
Swedish digital terrestrial network and Boxer were launched in
1999 and the last analogue broadcast ended in the fall of 2007.
Despite increased competition, Boxer is still Sweden's biggest
digital TV operator.
Sales and operating margin
Teracom Sweden
MSEK %
1500
40
2011
1200
900
600
300
0
2009
2010
2011
■ Sales MSEK ■ Operating margin %
32
24
16
8
0
• HDTV broadcasts reached 93 percent of households at year-end.
• Boxer launched on demand services as a complement to the linear TV
experience.
• Several larger program companies decided to broadcast regional
content via the terrestrial network.
• On April 1 MTG Radio launched Sweden's first commercial talk radio
channel, Radio 1.
Sales and operating margin
Boxer Sweden
MSEK %
2100
1575
1050
40
30
20
During the year Group-wide Guiding Stars and leadership principles
were launched. An internal mentoring program aimed at junior
managers was initiated.
Number of employees at Boxer Sweden: 53
Number of employees at Teracom Sweden: 445
525
10
0
2009
2010
2011
■ Sales MSEK ■ Operating margin %
616 542
Pay-TV subscribers for Boxer Sweden on
December 31, 2011.
0
Boxer Sweden, Teracom Sweden and Group functions started moving into
a new office together; the building is environmentally certified and environmental
initiatives will continue together with the new property owner.
Operating profit for Teracom Sweden was only marginally lower in 2011
than in 2010. Higher income from services such as regionalization and
telecom compensated for the somewhat lower income from regulated
products. An accrual effect of changed invoiced sales for Boxer Sweden
resulted in lower income during the first half of the year and reduced
the operating margin. A lower customer base and higher costs for
transmission and marketing also had an impact. Campaign with a lower
price point for Boxer Mix had a positive impact on new sales.
14