Annual Report 2003 - Modern Times Group MTG AB

notes
52
Note 5 DEPRECIATION AND AMORTIZATION
(SEK million) 2003 2002 2001
GROUP
Tangible and intangible assets
Capitalized development expenses 14.7 17.9 17.0
Beneficial rights 68.2 38.2 34.0
Goodwill 100.9 154.7 108.7
Machinery and other technical plant 9.8 5.6 14.8
Equipment, tools and installations 75.7 70.7 61.9
Total
Depreciation by function
269.3 287.1 236.4
Cost of goods and services 79.8 94.5 50.1
Selling expenses 0.1 0.1 0.1
Administrative expenses 27.2 45.6 42.2
Other operating expenses 162.3 146.9 144.0
Total
Depreciation by business area
269.3 287.1 236.4
Viasat Broadcasting 151.2 139.8 103.2
MTG Radio 4.5 4.2 3.2
TV-Shop 13.4 16.3 21.4
SDI Media 7.3 13.6 15.7
MTG Modern Studios 71.0 45.3 40.9
Discontinued businesses 0.4 51.8 11.5
Parent company and other 21.4 16.1 40.5
Total
Depreciation by geographical area
269.3 287.1 236.4
Sweden 130.2 109.1 100.9
Norway 8.6 0.6 0.1
Denmark 7.7 4.7 5.5
Rest of Europe 88.1 137.9 97.8
North America 33.1 32.8 29.7
Asia 1.6 2.1 2.5
Total 269.3 287.1 236.4
PARENT COMPANY
Tangible and intangible assets
Capitalized development expenses 10.3 6.0 4.0
Equipment, tools and installations 0.2 0.3 0.4
Total
Distributed by function
10.4 6.3 4.4
Other operating expenses 10.4 6.3 4.4
Total 10.4 6.3 4.4
Note 6 SHARE OF EARNINGS IN ASSOCIATED COMPANIES
(SEK million) % 2003 2002 2001
GROUP
Everyday Webguide AB 50 -13.5 -14.6 -56.9
Mediainvest Holding AS - - - -0.9
Mediamätning i Skandinavien MMS AB 43 1.4 4.6 0.0
P4 Radio Hele Norge ASA 33 -7.5 -7.3 28.0
Radio National i Luleå AB 49 -0.9 -0.8 -0.9
Radio National i Skellefteå AB 49 -0.8 -0.7 -0.6
Radioindustri Xerkses i Borås AB 49 -1.6 -1.5 -1.7
ScanSat A/S - -0.8 - -
Svensk Programagentur AB 50 5.2 9.5 1.7
TV 3 Estonia - - - -1.9
TV 4 AB 15 - -18.1 59.3
Finland Radio Investment AS 50 -0.9 -1.0 -1.0
Gigahertz KB 33 -0.1 -0.1 -0.1
Story First Communications, Inc. 29 88.4 26.3 -
Total 69.0 -3.9 25.0
Associated companies are reported based on equity accounting. The share of earnings is
equal to the MTG Group's share in the profit/loss after financial items in each associated
company after conversion into Swedish Kronor and after adjustments to MTG's accounting
principles (when necessary), less amortization of goodwill on consolidation generated
when MTG acquired that shareholding. For some companies, the calculation of share in
profit/loss was based on preliminary accounts that had not yet been audited.
Note 7 FINANCIAL ITEMS
(SEK million) 2003 2002 2001
GROUP
Proceeds from sales of
subscription right certificates Metro Intl 18.9 - -
Proceeds from sales of shares in other companies 0.2 - -
Proceeds from sales of shares in subsidiaries 1.0 - -
Total 20.1 - -
Interest revenue 41.4 58.6 50.8
Total 41.4 58.6 50.8
Total interest revenue and other financial income 61.5 58.6 50.8
Interest STIM court ruling 1993-1998 -32.6 - -
Total -32.6 - -
Interest expense -50.4 -67.7 -119.0
Exchange rate differences -82.7 -160.9 47.4
Other -29.4 -37.1 -21.9
Total -162.6 -265.6 -93.5
The Stockholm City Court ruled in December 2003 that TV3 must pay SEK 74 million to
STIM in royalty payments for music broadcast by TV3 between 1993-1998 plus accumulated
interest of SEK 32.6 million. The ruling has been appealed.