MTG sells Baltic broadcasting businesses | Pay-TV | News | Rapid TV News
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In the latest part of its corporate restructuring, Scandinavian pay-TV provider Modern Times Group (MTG) has agreed to sell its free-TV, pay-TV, digital and radio businesses in the Baltic region to Providence Equity Partners.

MTGpayTVMTG says the sale reflects its ongoing transformation from a traditional national broadcaster into a global digital entertainer, capitalising on rapid changes in consumers’ media consumption habits. The company added that it will use the sale’s proceeds for further transformation.

Providence is a premier global asset management firm that is the owner of Bite, the Lithuanian and Latvian mobile operator. The transaction values the business at value of €115 million equivalent to 12 times the EBIT for the 2016 fiscal year. The Baltic businesses have been reported within the International Entertainment segment and contributed with SEK1.024 billion in sales and SEK91 million in operating income (EBIT) for the full year 2016.

Key operations incorporated in the sale include the largest TV-channel portfolio in all three Baltic countries, with a combined 48.6% commercial share of viewing (CSOV) as of Q4 2016 (target audience: 15-49). These comprise the TV3, TV3+ and TV6 channels in Estonia; TV3, TV3+, TV6, Kanals 2 and LNT in Latvia; and TV3, TV6 and TV8 in Lithuania. It will also include subscription and advertising-funded video streaming services.

“We are on a journey to build an even stronger presence in the global digital arena, and I am happy that we have found a buyer that shares our view of the potential of the Baltic businesses,” commented MTG president and CEO Jørgen Madsen Lindemann. “Our Baltic colleagues can look forward to a new era that taps the full possibilities of the Baltic media market.”

Added Providence Equity  MD, Karim Tabet: “MTG’s Baltic broadcasting businesses are all leaders in their respective areas and we’re excited to partner with such a talented group of people to grow the company together. After our acquisition of Bite in 2016, this transaction highlights Providence’s continued commitment to investing in the Baltic region.”

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