DnB Markets - Modern Times Group MTG AB Class B (MTG B) MTG (Buy, TP: SEK350.00) - Focus on MTGx route to profits

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DnB Markets

Martin Arnell

MTG (Buy, TP: SEK350.00) - Focus on MTGx route to profits

We expect more insight into the new ventures (MTGx) at the CMD on 29 November. Looking ahead, we believe MTGx will take over as the driver of group earnings, which should be positive for the share price. MTGx is the main catalyst for our 2018â€“2019e EBIT CAGR of 20% (1% over 2013â€“2016). Recent news of price hikes in 2018 Swedish television advertising contracts is comforting given the structural challenges for key parts of the traditional business. We keep our BUY recommendation and SEK350 target price.

27/11/2017 18 EN

Underlying

Modern Times Group MTG AB Class B

Modern Times Group MTG AB is an entertainment group with operations that include free-television (TV), pay-TV, digital entertainment, radio and content production businesses. Co. has six business segments. Five of these segments, Free-TV Scandinavia, Pay-TV Nordic, Free-TV Emerging Markets, Pay-TV Emerging Markets and CTC Media, comprise Viasat Broadcasting. Co.'s Viasat Broadcasting is a free-TV and pay-TV operator, and also an operator and distributor of live and on-demand streamed free and paid video content over the internet, providing movies, live sports events, TV series, and catch-up services. The sixth business segment mainly comprises Co.'s MTG Studios, MTGx and Radio businesses.

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SE0000412371 Nasdaq Nordic Stockholm Sweden

Provider

DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

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Analysts

Martin Arnell

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MTG (Buy, TP: SEK350.00) - Focus on MTGx route to profits

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