Annual Report 2003 - Modern Times Group MTG AB

800
600
400
200
0
net sales msek ebit msek
2001
2002
2003
CDON.COM almost doubles
sales year-on-year
The TV-Shop business area comprises
the Groups's home shopping
activities.
TV-Shop is one of Europe's
largest TV home shopping businesses
with own operations in 19
countries and a broadcasting reach of
approximately 100 million households in 52 countries. The business
area includes two direct response TV home shopping channels
(TV-Shop and PIN24) and the leading Nordic internet retailer
CDON, which sells CD´s, DVD´s, books and electronic games. The
business area reported sales of SEK 738 (671) million and an operating
income of SEK 9 (12) million.
CDON had another great year with strong growth from all its
product lines. Sales grew by 99% to SEK 311 (156) million. Despite
fast growth, the business reported an increase in operating margins
to 7% and operating income consequently increased to SEK 23 (10)
million. CDON sells four product lines in five markets and manages
these operations with only 21 employees located in the Swedish
city of Malmö.
CDON extended its product range in November 2003 with the
launch of a Swedish book department. This fits naturally with
CDON’s other entertainment products. Book sales greatly exceeded
expectations in December 2003. In similar fashion, CDON
countries
Austria
Belgium
Czech Republic
Denmark
Finland
France
40
20
0
-20
-40
2001
2002
2003
client quote
�
“Good products with
lots of variety at affordable
prices with outstanding
service at all times.”
Tonnie Nyström, Stockholm
Germany
Great Britain
Greece
Holland
Iran
Norway
Portugal
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
tv-shop
expanded its games department to include all Nordic countries in
February 2003, consequently games sales have exploded, growing
by close to 300% year on year.
TV-Shop is one of Europe’s largest direct response sales companies
and it was the first company to launch direct sales on the
Internet in Sweden. TV-Shop is currently broadcast in 52 countries
in English, German and other language formats and reaches approximately
100 million households. TV-Shop launched local versions
of the channel in several of the 52 countries at the end of 2003
in order to meet local customer demand. TV-Shop sells a wide range
of popular items – from compilation CDs to sunglasses and from
personal fitness equipment to household cleaning products. The
same products are sold across multiple markets, thereby enabling
the Company to realize significant synergies and economies of scale.
The TV-Shop channels reported sales of SEK 399 (423) million and
operating income of SEK - 11 (- 5) million, reflecting a year of weak
and highly competitive markets.
TV-Shop’s internet sales increased by more than 22% year on
29