Modern Times Group (MTG) has completed the sale of its free-TV broadcasting and production businesses in Ghana and Nigeria to Econet Media Group for an undisclosed consideration. The sale of MTG's free-TV broadcasting business in Tanzania to the same buyer is pending local regulatory approval and is expected to close in the first quarter of next year. The sell-off reflects MTG’s ongoing strategic transformation from a traditional broadcaster into a digital video entertainment company.
The African free-TV and production businesses generated sales of SEK 21 million and an EBIT loss of SEK 27 million for the first 11 months of 2016, of which Ghana and Nigeria contributed with sales of SEK 18 million and negative EBIT of SEK 11 million. The sale of MTG’s businesses in Ghana and Nigeria will result in a preliminary net capital loss of some SEK 24 million, which will be reported within items affecting comparability in MTG’s Q4 financial results. The sale of the Tanzanian operations is expected to result in an insignificant net capital effect.
