Annual Report 2003 - Modern Times Group MTG AB

notes
50
Note 2 BUSINESS SEGMENTS
The business is primarily divided into five business segments. Viasat Broadcasting is a
commercial Free-TV and Pay-TV broadcaster in Scandinavia and in the Baltics. The group
also has Free-TV as well as Pay-TV operations in Russia and Hungary. Viasat Broadcasting
also includes teletext and iDTV applications. MTG Radio operates commercial radio stations
in Sweden, Estonia, Latvia and Lithuania, and owns equity stakes in Norwegian and Finnish
commercial radio networks. TV Shop operates in TV home shopping and internet retailing.
SDI Media provides language versioning and localization services to the entertainment
industry in North and South America, Europe, the Middle East, Far East and most of Asia.
MTG Modern Studios produces and distributes films and television programs as well as
producing and managing events, mainly in Scandinavia and the United States.
Comparative figures per business area for 2001 and 2002 have been restated to facilitate
comparison. The stated figures for 2001, 2002 and 2003 are based on the same operational
structure.
Business area
(SEK million) 2003 2002 2001
EXTERNAL SALES
Viasat Broadcasting 4,651.1 4,427.0 4,621.0
MTG Radio 171.4 154.4 121.2
TV Shop 733.5 661.7 734.1
SDI Media 302.3 333.1 347.6
MTG Modern Studios 440.1 334.2 395.6
Parent company and other companies 2.5 2.7 29.5
Discontinued businesses 10.4 110.2 153.0
Total 6,311.3 6,023.2 6,402.1
INTERNAL SALES
Viasat Broadcasting 12.7 23.8 37.7
MTG Radio 2.7 2.9 2.8
TV Shop 4.5 9.0 21.0
SDI Media 51.3 45.8 49.6
MTG Modern Studios 297.3 305.2 258.8
Parent company and other companies 100.1 106.2 73.2
Discontinued businesses - 2.8 5.4
Total 468.6 495.8 448.4
Internal sales are sales revenues between business areas, primarily sales from the MTG
Modern Studios and SDI Media business areas to the Viasat Broadcasting business area.
Such sales are made at market prices.
OPERATING INCOME/LOSS
Viasat Broadcasting 652.9 448.9 478.4
Sales of shares in TV4 - 162.9 -
Share of earnings TV4 - -18.1 59.3
Viasat digital project - - -15.0
Victory Challenge - -30.0 -
MTG Radio -28.2 -31.0 12.6
TV Shop 9.2 11.6 -33.1
SDI Media 48.5 53.7 41.5
MTG Modern Studios 57.3 62.7 85.9
Parent company and other companies -172.7 -160.3 -167.2
Discontinued businesses -15.5 -203.5 -90.5
Other non-recurring costs - -20.5 -
Eliminations -9.6 -9.6 -12.0
Total
of which, share of earnings in associated companies
542.0 266.8 359.9
Viasat Broadcasting 92.8 17.7 59.1
MTG Radio -11.8 -11.6 22.8
Parent company and other companies -12.0 -10.0 -56.9
Total 69.0 -3.9 25.0
TOTAL ASSETS
Viasat Broadcasting 3,324.9 3,704.8 4,385.9
MTG Radio 123.1 110.9 158.5
TVShop 267.0 316.1 331.3
SDI Media 140.6 147.7 218.1
MTG Modern Studios 414.6 448.3 464.0
Discontinued businesses 0.7 11.5 69.4
Parent company and other companies 1,054.8 1,067.4 990.1
Total 5,325.7 5,806.6 6,617.3
Deferred tax receivables 390.1 377.0 323.7
Total assets reconciled
Of which, total share of equity in
associated companies (incl in total assets)
5,715.9 6,183.6 6,941.0
Viasat Broadcasting 284.5 218,1 212.9
MTG Radio 60.3 75.5 89.7
Parent company and other companies 2.5 9.2 5.1
Total 347.3 302.7 307.7
TOTAL INVESTMENTS IN FIXED ASSETS
Viasat Broadcasting 35.9 37.9 61.3
MTG Radio 0.8 3.8 7.1
TVShop 0.2 1.8 7.3
SDI Media 1.0 0.9 5.8
MTG Modern Studios 80.6 53.5 21.2
Discontinued businesses - 0.1 1.5
Parent company and other companies 16.8 - 1.3
Total
Depreciation and amortization by
business area is shown in Note 5.
135.3 98.0 105.5
TOTAL LIABILITIES
Viasat Broadcasting 1,637.4 1,803.9 2,353.7
MTG Radio 50.8 53.2 49.6
TVShop 162.8 142.1 145.6
SDI Media 42.1 40.0 52.9
MTG Modern Studios 203.5 212.5 225.2
Discontinued businesses 2.5 68.3 58.7
Parent company and other companies 1,427.3 1,883.6 1,980.3
Total 3,526.6 4,203.5 4,865.8
Shareholders' equity 2,145.0 1,885.4 1,948.3
Deferred tax liabilitites 4.0 1.7 -
Current tax liability 40.4 93.0 126.8
Total liabilities and equity reconciled 5,715.9 6,183.6 6,941.0