Interim Report January - September 2012
Interim Report January - September 2012
JULY - SEPTEMBER 2012 IN SUMMARY
JANUARY - SEPTEMBER 2012 IN SUMMARY
•
•
•
•
•
•
•
•
•
•
•
•
•
Income SEK 1,117 million (1,025)
EBITDA SEK 257 million (251)
EBITDA margin 23% (25%)
Operating profit SEK 154 million (148)
Operating margin 14% (14%)
Net income SEK 97 million (95)
Income SEK 3,353 million (2,985)
EBITDA SEK 610 million (614)
EBITDA margin 18% (21%)
Operating profit SEK 314 million (308)
Operating margin 9% (10%)
Net income SEK 160 million (152)
Return on equity 10% (18%)
COMMENTS FROM THE PRESIDENT AND CEO OF TERACOM
The Group currently has more than 1.2 million pay TV customers. The strong growth in Denmark during the first six
months has slowed as expected. Boxer Denmark's growth is the main driver behind the increasing sales, although a
larger customer base and a higher average income per customer in Plus TV contributed as well. Some very good news
is that the rate at which customers are leaving Boxer Sweden has leveled off and the new products, Flex 8 and Hela
Huset, are selling well.
The Group as a whole has a very stable financial position and the operating profit improved slightly despite the fact
that earnings this year were burdened by high sales costs in Denmark and Finland. The rise in profit was achieved
through the continued implementation of streamlining measures within the organization.
In Denmark we now got the opportunity to build transmitting network number six for HDTV with the new DVB-T2
standard and mobile TV with the DVB-T2 Lite substandard. By doing this, we can become the first in the world to
commercially introduce special mobile TV channels with this technology.
The application period for broadcasting digital radio in the Swedish terrestrial network is now closed and we can
confirm that there is a lot of interest and that the larger commercial actors are among the applicants. In Denmark the
process of digitalizing radio broadcasts continued to move forward. The political parties reached a broad agreement
and announced that the build out of digital radio will occur and that DAB+ will be used. The goal is to shut down the
FM network in 2019. The fact that there is considerable interest in having digital radio in the terrestrial network is a
sign that our infrastructure is ahead of the curve. The future promises to be very interesting as the radio broadcasts
are digitalized.
Corporate sustainability efforts are increasing in importance. Last quarter we announced that we had switched to
green electricity in the Group, which is estimated to reduce our impact on the environment by 70 percent. This
quarter we presented the Group's joint Code of Conduct internally. The Code contains clear rules regarding issues
such as corruption. In situations that are more complex and require personal judgment, the Code focuses on
clarifying the Group's general position and goals and thus places a lot of responsibility on the individual to make the
necessary decisions, which can sometimes be difficult. The Code of Conduct is now available on the Group's intranet
for internal discussion. These discussions are an important step in helping to firmly establish the Code within the
organization and make it a part of our everyday routines.
Gunilla Berg
Acting President and CEO
Interim Report January - September 2012
2(16)
SIGNIFICANT EVENTS JANUARY – SEPTEMBER 2012
In Denmark, TV2, Denmark's most popular TV channel, switched from free TV to pay TV on January 11,
2012, which resulted in strong sales growth. Boxer Denmark's customer base reached 371,000 customers at
the end of September. In total the Group has more than 1.2 million customers, which makes Teracom Group
one of the largest pay TV groups in the Nordic region.
HDTV was launched in the Danish terrestrial network in early April.
On April 16, Boxer Sweden launched two new products: "Flex 8", which offers customers the freedom to
select their channels, and ”Hela Huset", which offers three extra cards for the Basic card.
The Swedish Broadcasting Authority announced in June the licenses for six new TV channels in the
terrestrial network - five national channels and one regional channel in Helsingborg. The new channels
strengthen the terrestrial network and Bonnier Group's TV4 News already began broadcasting on July 1.
The Danish Broadcasting Commission announced on July 4 that Boxer no longer needs to launch services
with the mobile TV standard, DVB-H, in the sixth transmitting network. The Commission will revisit the
issue in 2015 to determine if it is necessary to have specific mobile TV services in the terrestrial network. In
the meanwhile, Boxer can use the sixth network for both new HDTV and new mobile TV channels.
The owners of shares in Digi TV Plus OY corresponding to 30.88 percent utilized their right to sell their
shares and Teracom Group now owns 100% of the shares since August 28, 2012.
Steffen Weber was appointed President of Teracom Denmark. Steffen has been the Acting President since
November 2011.
Group CEO Crister Fritzson is leaving Teracom Group to become the President and CEO of Swedish SJ.
SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD
A majority of the Danish political parties, in a joint media agreement for the period 2012-2014, agreed that
the digitalization of radio should be accelerated with the goal of shutting down the FM network in 2019. The
parties also agreed that the seventh transmitting network (called MUX 8) will be used for commercial TV.
The exact conditions for this will be determined later.
Åsa Sundberg, CEO for the mobile operator, Net1, and Chairman of the Board of Directors of Teracom
Group, was named the new President and CEO for Teracom Group on October 15. Åsa will assume the
position on December 1. Crister Fritzson left his role as President on October 15 but he is available for
support until October 31. The Acting President and CEO until December 1 is Vice CEO Gunilla Berg.
FINANCIAL OVERVIEW
Group
MSEK
Income
Operating profit/loss
Operating margin
Profit/loss after financial items
Equity ratio
Cash flow
Return on equity (rolling 12-month basis)
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
1 117
1 118
1 118
1 074
1 025
997
963
154
85
75
68
148
93
67
14%
8%
7%
6%
14%
9%
7%
146
72
59
67
134
81
43
34%
31%
33%
32%
32%
30%
31%
4
-56
-133
142
-166
-124
-9
10%
11%
11%
10%
18%
17%
12%
Interim Report January - September 2012
3(16)
FINANCIAL OVERVIEW
Income and profits
First nine months of 2012
Q3 2012
The Group's income for the first nine months of the
year amounted to SEK 3,353 million (2,985), which
represents an improvement of 12 percent. Income
increased primarily due to the sharp increase in the
number or subscribers, and thereby income, at Boxer
Denmark compared to the corresponding period the
previous year.
Group income during the third quarter of 2012
amounted to SEK 1,117 million (1,025). This 9
percent increase compared to the third quarter of
2011 was primarily due to the increase in the number
of subscribers, and thereby income, at Boxer
Denmark.
The quarter's operating profit improved slightly and
was SEK 154 million (148). This increase is primarily
due to improved profit in Boxer Denmark and the
continued implementation of streamlining measures
throughout the organization. The operating profit
was burdened by SEK 17 million (5) from costs
affecting comparability. Translation of the profit in
Denmark and Finland resulted in a positive effect of
SEK 4 million compared to the third quarter of 2011.
Profit for the quarter after financial items was SEK
146 (134) million. Net financial items for the third
quarter of 2012 amounted to SEK -8 million (-14).
Profit for the period was SEK 97 million (95).
MSEK
%
Earnings trend - Teracom Group
200
16%
14%
12%
10%
8%
6%
4%
2%
0%
150
100
50
0
Q1
2010
Q3
Q1
2011
Operating Profit/Loss
Q3
Q1
2012
Q3
Operating Margin
Operating profit for the period was SEK 314 million
(308). Profit improved primarily due to streamlining
efforts and moderation. This year the profit was
burdened by high sales costs in Boxer Denmark and
Plus TV Finland. The operating profit includes costs
affecting comparability totaling SEK 29 million (7).
Translation of the profit in Denmark and Finland
resulted in a positive effect of SEK 4 million compared
to the same period in 2011.
Profit after financial items was SEK 277 million (258).
Net financial items for the first nine months of 2012
amounted to SEK -37 million (-50). Due to the
amortization of credit facilities, interest expenses
decreased by SEK 13 million, exchange rate differences
for foreign currency increased by SEK 11 million and
valuation effects from derivatives increased by SEK 5
million compared to the corresponding period last
year. During the first nine months of 2011, net
financial items were impacted negatively by SEK 16
million from unrealized gains from electricity
derivatives. The change in unrealized gains/losses
attributable to electricity derivatives will no longer
burden net financial items as of 2012, but rather will be
charged directly to the other comprehensive income.
Profit for the period was SEK 160 million (152). Based
on the management team's current assessment of
future profits, no deferred tax asset has been reported
for the year's deficit in Finland and Denmark.
Interim Report January - September 2012
4(16)
MARKET OVERVIEW
DEVELOPMENT BY SEGMENT
TV and radio broadcasts on the Swedish terrestrial
network are regulated with regard to the
broadcasting of free TV and Sveriges Radio. There
continued to be stringent competition in the Swedish
pay TV market during the period. Several new actors
for ordering movies and shows over the Internet were
introduced during the quarter, including the
international actors HBO and Netflix.
The Teracom Group monitors operations within five
segments. Two segments run network operations
within the areas of terrestrial TV, radio and
transmission. Three segments run pay TV operations
within the area of terrestrial TV. The geographic
markets cover Sweden, Denmark and Finland.
In September, the Swedish public service
investigation was presented, which among other
things proposed a build out of digital radio. There has
been considerable interest from the market and all of
the commercial radio companies applied for a license
to broadcast digital radio in the Swedish terrestrial
network.
There is intense competition on Denmark's pay TV
market. Most competitors are offering triple play and
HDTV. The market for pay TV was strengthened after
TV2, Denmark's most popular TV channel, was
converted from free to pay TV in January. The
majority of the previous free TV-households have
signed up for some form of a pay TV subscription.
For these households, Boxer Denmark has been the
most popular alternative.
Income from external sources by segment - Q1-Q3 2012
13%
22%
Teracom Sweden
Boxer Sweden
15%
Teracom Denmark
5%
Boxer Denmark
45%
Plus TV Finland
Income from external sources by segment - Q1-Q3 2011
14%
Teracom Sweden
26%
5%
Boxer Sweden
5%
A majority of the Danish political parties have now
decided that FM radio should be shut down in 2019
on the condition that at least 50 percent of time spent
listening to the radio is done via digital channels by
the middle of 2018. The agreement also determines
that Danmarks Radio will not own its own
transmitting network for radio.
Teracom Denmark
Boxer Denmark
50%
Plus TV Finland
Terrestrial TV in Finland is strong. The majority of
TV reception is free TV and there is a wide variety of
channels. In the Finnish terrestrial network, PlusTV
is the clear leader for pay TV. Demand for pay TV is
partly seasonal and driven by various sporting
events. For example, a large number of customers
sign up in conjunction with the Ice Hockey World
Championship in May.
Interim Report January - September 2012
5(16)
Teracom Sweden
Boxer Sweden
Q3
2012
376
142
38%
MSEK
Income incl. internal
Operating profit/loss
Operating margin
Q3
2011
375
133
35%
Q1-Q3
2012
1 100
368
33%
Q1-Q3
2011
1 093
336
31%
Profit in Teracom Sweden during the third quarter
and aggregate for the year was higher than in the
corresponding period last year. The strong results
are due to streamlining efforts that were
implemented within the organization and to some
extent higher transmission income from Boxer
Sweden.
During the third quarter, interest for co-location
in Teracom facilities continued to be strong.
Orders for Co-location of 4G equipment and
connection and satellite business continue to be
high.
Investments to build out the network for HDTV
(high definition TV) were made during the quarter
as planned. The HD network now covers almost
98 percent of the population.
Since August, Teracom Sweden has been buying
electricity labeled as "Good Environmental
Choice" (”Bra Miljöval”) to reduce its impact on
the environment.
MSEK
Earnings trend - Teracom Sweden
160
140
120
MSEK
Income incl. internal
Operating profit/loss
Operating margin
No. of subscr. (thous.)
Q3
2012
510
84
16%
602
Q3
2011
517
98
19%
626
Q1-Q3
2012
1 511
214
14%
602
Q1-Q3
2011
1 499
225
15%
626
Operating profit for the quarter is SEK 14 million
lower than it was the same period last year. This is
primarily due to higher transmission costs from
the build out of HD. The decline in the number of
subscribers is for the most part offset by the
increase in the average income per customer.
The comparison to the first nine months of last
year is impacted by the change in invoicing
method that was introduced in 2011 and resulted
in a decrease in card income by around SEK 50
million in the first six months of 2011. However,
this does not affect the third quarter.
The decline in customers during the quarter is
mainly due to seasonal variations in subscriptions
to summer cabins and caravans. The decline of
customers in the underlying customer base has
tapered off and the new products, Flex 8 and Hela
Huset, continue to sell well.
%
MSEK
50%
120
40%
100
Earnings trend - Boxer Sweden
%
20%
15%
100
30%
80
80
60
10%
20%
60
40
40
10%
20
0
0%
Q1
2010
Q3
Kv1
2011
Operating Profit/Loss
Q3
Kv1
2012
Q3
Operating Margin
5%
20
0
0%
Q1
2010
Q3
Q1
2011
Operating Profit/Loss
Q3
Q1
2012
Q3
Operating Margin
Distribution TV reception, share of households
Sweden - 2005-2011
6 000
5 000
IPTV
4 000
Satellite
3 000
Cable/SMATV
2 000
Analogue FTA
1 000
DTT FTA
DTT Pay
0
2005 2006 2007 2008 2009 2010 2011
The number of TV households broken down by main form of reception. DTT
FTA: households that only have free TV via the terrestrial network. Many TV
households also have DTT FTA as a supplementary form of reception.
Interim Report January - September 2012
6(16)
Teracom Denmark
Boxer Denmark
Q3
MSEK
2012
Income incl. internal sales 82
Operating profit/loss
16
Operating margin
20%
Q3
2011
82
17
21%
Q1-Q3
2012
251
45
18%
Q1-Q3
2011
251
46
18%
Teracom Denmark has a relatively stable revenue
base with long-term contracts. Income and profit
for the third quarter are in line with last year.
Profit for the year in local currency is slightly
lower than last year, which can to a large extent be
explained by a provision for a potential bad debt
loss.
The second of two large projects to build out DAB
(digital radio) is in its final phase and it is
estimated that it will be concluded in November
2012.
The future for digital radio in Denmark is bright
since a majority of the political parties have jointly
decided to shut down the FM network in 2019 and
invest in the continued build out of the digital
network.
Network quality during the period was good.
Teracom Denmark is sharply reducing its impact
on the environment by replacing electricity
generated
by
fossil
fuels
with
"Good
Environmental Choice" (”Bra Miljöval”) electricity.
Earnings trend - Teracom Denmark
MSEK
MSEK
Income incl. internal
Operating profit/loss
Operating margin
No. of subscr. (thous.)
Q3
2012
161
-42
-26%
371
Q3
2011
58
-62
-107%
90
Q1-Q3
2012
501
-173
-35%
371
Q1-Q3
2011
160
-190
-119%
90
The operations in Boxer Denmark are still in the
start-up phase. Denmark's most popular TV
channel, TV2, was converted to a pay TV channel
in January 2012, which resulted in a very large
stream of new customers at the beginning of the
year. Boxer Denmark has been the most popular
alternative for customers who previously did not
have a pay TV subscription. The effects of the TV2
conversion have now receded, which was
expected.
As a result of the strong sales, Boxer Denmark
more than quadrupled its customer base and more
than doubled its income compared to the
corresponding period last year. Earnings during
the quarter continued to be negative as a result of
costs related to attracting customers, which is
necessary during the start-up phase. However,
profitability started to improve as costs for
attracting customers fell and more customers are
going over to regular pricing schedules.
MSEK
25
%
25%
20
20%
-20
15
15%
-40
10
10%
-60
5
5%
-80
0
0%
-100
%
Earnings trend - Boxer Denmark
0
0%
-50%
-100%
-150%
-200%
-250%
-300%
-350%
Q4
Q1
2011
Q2
Q3
Operating Profit/Loss
Q4
Q1
2012
Q2
Q3
-400%
Q1
2010
Operating Margin
Q3
Q1
2011
Operating Profit/Loss
Q3
Q1
2012
Q3
Operating Margin
Distribution of TV reception, number of households
Danmark 2005-2011
3 000
2 500
IPTV
2 000
Satellite
1 500
Cable/SMATV
1 000
Analogue FTA
500
DTT FTA
0
DTT Pay -TV
2005 2006 2007 2008 2009 2010 2011
T hous.
The share of TV households broken down by main form of reception. DTT
FTA: households that only have free TV via the terrestrial network. Many TV
households also have DTT FTA as a supplementary form of reception.
Interim Report January - September 2012
7(16)
PlusTV Finland
CASH FLOW
MSEK
Income incl. internal
Operating profit/loss
Operating margin
No. of subscr. (thous.)
Q3
2012
144
-15
-10%
237
Q3
2011
138
-18
-13%
225
Q1-Q3
2012
446
-51
-11%
237
Q1-Q3
2011
417
-53
-13%
225
Plus TV is the market leader for pay TV in Finland
and this position was strengthened during the first
nine months of 2012. After a strong second quarter
driven primarily by interest in the Ice Hockey
World Championship that was broadcasted via
Canal+, the third quarter was weaker in terms of
sales. A large number of the Canal+ subscriptions
sold during the spring had short contract periods
and the majority of the subscriptions for these
customers have now expired. This is the primary
driver behind the decrease in the customer base
during the third quarter.
Compared to the same period last year, however,
the customer base has increased. This increase,
combined with a higher average income per
customer as a result of higher added sales, has
generated an improvement in both income and
profit compared to the third quarter of 2011.
Cash flow from operating activities during the third
quarter was SEK 83 million (74). The owners of
shares in Digi TV Plus Oy corresponding to 30.88
percent utilized their right to sell their shares to
Teracom via issued put options and Teracom Group
now holds 100 percent of the shares. The acquisition
analysis from 2009 included 100 percent of the
shares in Digi TV Plus Oy in accordance with IFRS 3.
The amount that was paid during the third quarter,
SEK 77.2 million for 1,768,785 shares in Digi TV Plus
Oy, was therefore reported as a reduction of a shortterm liability. Tied up operating capital for the year
increased compared to the same period last year as a
result of the acquisition of the minority holding in
Digi TV Plus Oy and an increase in inventories.
The Group's investments in property, plant and
equipment and intangible assets, SEK 49 million
(88), were primarily related to measures designed to
increase the capacity of the Swedish transmission
network and the continued expansion of the Swedish
HDTV network. In the third quarter, credit facilities
were amortized by SEK 100 million (175). Cash flow
for the quarter was SEK 4 million (-166).
PlusTV is now a wholly owned subsidiary of
Teracom Group AB.
FINANCIAL POSITION
Earnings trend - Plus TV Finland
MSEK
%
0
0%
-5
-5%
-10
-15
The Group's interest-bearing liabilities amounted to
SEK 1,855 million (2,108). During the first nine
months of the year, credit facilities were amortized
by SEK 375 million.
-10%
-20
-15%
-25
Net debt/equity ratio
MSEK
-30
-20%
Q1
2010
Q3
Q1
2011
Operating Profit/Loss
Q3
Q1
2012
Q3
Operating Margin
2012-09-30
2011-09-30
2011-12-31
1 855
2 108
2 016
Less: Cash and cash equivalents
-34
-80
-220
Other interest-bearing assets
-56
-56
-56
Net liability
1 765
1 972
1 740
Equity
1 782
1 763
1 773
0,99
1,12
0,98
Interest-bearing liabilities
Net debt/equity ratio
Distribution of TV reception, number of households
Finland 2005-2011
3 000
2 500
IPTV
2 000
Satellite
1 500
Cable/SMATV
1 000
Analogue FTA
500
DTT FTA
0
Total assets decreased by SEK 132 million to SEK
5,299 million (5,431). The Group's equity ratio
improved by 2 percentage points to 34 percent (32)
compared to the same point in time in 2011. At the
end of the period, cash and cash equivalents, shortterm investments and available bank credit totaled
SEK 851 million (1,230).
DTT Pay -TV
2005 2006 2007 2008 2009 2010 2011
T hous.
The number of TV households broken down by main form of reception. DTT
FTA: households that only have free TV via the terrestrial network. Many TV
households also have DTT FTA as a supplementary form of reception. Due to
the application of a new method in Q1 2012, the historical estimates for
Cable/SMATV have been adjusted slightly
Interim Report January - September 2012
8(16)
CHANGED ACCOUNTING PRINCIPLES
AS OF 2013
IAS 19 Employee benefits
The standard, which was adopted by the EU in June
2012, no longer requires application of the corridor
approach. This means that all historical unrealized
actuarial gains and losses will be included in the
recognition of the pension provision and reported
in Other comprehensive income. When this change
comes into effect on January 1, 2013, the pension
provision will initially increase and equity will
decrease. Future changes in the net pension
provision will be reported directly in other
comprehensive income. Comparable figures for
2012 will be calculated in accordance with the new
standard and for full-year 2012 the preliminary
judgment is that equity will decrease by around SEK
180 million.
RISKS AND UNCERTAINTIES
Please see Teracom's Annual Report 2011 for a
description of the risks and risk management
practices. No additional risks or uncertainty factors
have been identified during the period.
Interim Report January - September 2012
9(16)
CONSOLIDATED INCOME STATEMENT
MSEK
2012-07-01 2011-07-01 2012-01-01 2011-01-01 2011-01-01
2012-09-30 2011-09-30 2012-09-30 2011-09-30 2011-12-31
Note
Operating income
Net sales
1 109
1 021
3 334
2 972
4 042
8
4
19
13
17
1 117
1 025
3 353
2 985
4 059
6
3
29
14
25
-60
-48
-195
-153
-214
-132
-132
-457
-441
-614
-103
-103
-296
-306
-423
-674
-597
-2 120
-1 791
-2 457
154
148
314
308
376
-8
-14
-37
-50
-51
Profit/loss after financial items
146
134
277
258
325
Tax on net profit for the period
-49
-39
-117
-106
-157
Net profit/loss for the period
97
95
160
152
168
Other income
2
Work performed by the company for its own use and capitalized
Operating expenses
Material costs
Employee benefit costs
Depreciation/amortization and impairment
3
Other expenses
Operating profit/loss
2
Net financial income/expense
Cash flow hedges
1
0
-8
0
-37
52
0
80
0
-6
Translation differences
-58
49
-93
-22
3
Income tax related to Other comprehensive income
-15
0
-20
0
12
Other comprehensive income, net after tax
-20
49
-41
-22
-28
77
144
119
130
140
77
144
119
130
140
0
0
0
0
0
77
144
119
130
140
Hedging of net investment
Comprehensive income for the period
Comprehensive income for the period related to:
Parent Company shareholders
Minority interest
Net profit/loss for the period
Interim Report January - September 2012
10(16)
Instructions
X
CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
MSEK
Note
2012-09-30
2011-09-30
2011-12-31
Property, plant and equipment
2 841
3 042
2 993
Intangible assets
1 404
1 478
1 438
169
115
97
4 414
4 635
4 528
83
41
67
768
675
738
34
80
220
885
796
1 025
5 299
5 431
5 553
Equity
1 782
1 763
1 773
Liabilities to credit institutions
1 855
1 965
1 858
390
360
426
Current liabilities and provisions
1 272
1 343
1 496
TOTAL EQUITY AND LIABILITIES
5 299
5 431
5 553
Pledged assets
0
0
0
Contingent liabilities
0
0
0
ASSETS
Fixed assets
Other long-term receivables
Total fixed assets
Current assets
Inventories
Current receivables
Cash and cash equivalents
Total current assets
TOTAL ASSETS
2
EQUITY AND LIABILITIES
Long-term liabilities and provisions
Memorandum items
Interim Report January - September 2012
11(16)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
MSEK
Share
capital
Other
contributed
capital
Reserves
0
1 633
-77
Opening balance 2012-01-01
Total equity
attributable to the
Parent
Earned
Company's Minority share
profits
shareholders
of equity
Dividends
Comprehensive income for the year
Closing balance 2012-09-30
MSEK
0
1 633
119
0
119
0
1 782
Total equity
attributable to the
Parent
Earned
Company's Minority share
profits
shareholders
of equity
Total equity
-49
Dividends
Closing balance 2011-09-30
-22
0
1 633
-110
1 782
Reserves
980
1 773
0
267
653
-250
0
-110
160
250
New Group structure June 1, 2011
1 773
-41
Other
contributed
capital
Comprehensive income for the year
217
-110
-118
Share
capital
Opening balance 2011-01-01
Total equity
-71
889
1 743
0
1 743
-110
-110
0
-110
152
130
0
130
-730
0
0
0
201
1 763
0
1 763
CONSOLIDATED STATEMENT OF CASH FLOWS
2012-07-01
2012-09-30
2011-07-01
2011-09-30
2012-01-01
2012-09-30
2011-01-01
2011-09-30
2011-01-01
2011-12-31
Operating profit/loss before financial items
154
148
314
308
376
Adjustments for items not included in cash flow
115
136
301
317
475
Income tax paid
-46
-55
-130
-130
-149
Cash flow before changes in working capital
223
229
485
495
702
-140
-155
-308
-145
-57
83
74
177
350
645
-49
-88
-227
-233
-332
1
-2
1
-6
-12
-48
-90
-226
-239
-344
35
-16
-49
111
301
MSEK
Note
Change in working capital
Cash flow from operating activities
Acquisition of property, plant and equipment and
intangible assets
Cash flow from other investing activities
Cash flow from investing activities
Cash flow before financing activities
Dividends
0
0
-110
-110
-110
Amortization/New loans
-31
-150
-26
-300
-348
Cash flow from financing activities
-31
-150
-136
-410
-458
4
-166
-185
-299
-157
Cash and cash equivalents at the beginning of the period/year
31
245
220
377
377
Exchange rate differences on cash equivalents
-1
1
-1
2
0
Cash and cash equivalents at the end of the period
34
80
34
80
220
Cash flow for the period/year
Interim Report January - September 2012
12(16)
NOTES
Note 1 Accounting principles
The Group's reporting is in accordance with the Government Ownership Policy and the guidelines for external
reporting that apply to state-owned companies. Accordingly, the interim report for the Group was prepared in
accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act, and for the Parent
Company in accordance with the Swedish Annual Accounts Act. The Group applies the same accounting principles as
those described in Annual Report 2011.
New and revised IFRS standards that must be applied as of 2012 have not affected Teracom's financial statements by
significant amounts.
Note 2 Segment information
The segments are reported in accordance with the same accounting principles applied by the Group, although income
and expenses are redistributed for operational follow-up. Sales between segments occur at prices that are fair
estimates of current market prices. Operating profit is used to assess the performance of each segment. Financial
expenses, financial income and income tax are dealt with at the Group level.
Operating incom e per segm ent and quarter
MSEK
Q3 2012
Q3 2011
Nine months 2012
Nine months 2011
Full year 2011
Teracom Sw eden
376
375
1 100
1093
1 478
Boxer Sw eden
510
517
1 511
1 499
2 011
82
82
251
251
345
Boxer Denmark
161
58
501
160
266
Plus TV Finland
144
138
446
417
556
34
15
90
47
60
0
0
0
0
0
-190
-160
-546
-482
-657
1 117
1 025
3 353
2 985
4 059
Q3 2012
Q3 2011
Nine months 2012
Nine months 2011
Full year 2011
142
133
368
336
469
Boxer Sw eden
84
98
214
225
278
Teracom Denmark
16
17
45
46
66
Boxer Denmark
-42
-62
-173
-190
-260
Plus TV Finland
-15
-18
-51
-53
-72
-9
-8
-45
-34
-54
-17
-5
-29
-7
-36
-5
-7
-15
-15
-15
154
148
314
308
376
Teracom Denmark
Other
Oneoff effects
Adjustments made upon consolidation
Total
Operating profit/loss per segm ent and quarter
MSEK
Teracom Sw eden
Other
Oneoff effects
Adjustments made upon consolidation
Total
Assets/Liabilities
MSEK
Assets
30 september 2012 30 september 2011
Liabilities
30 september 2012 30 september 2011
Assets
Liabilities
Full year 2011
Full year 2011
Teracom Sweden
2 364
5 499
1 796
4 001
3 422
1 851
Boxer Sweden
1 031
946
870
772
1 030
874
Teracom Denmark
1 354
1 501
128
165
1 453
149
Boxer Denmark
263
229
438
428
346
602
Plus TV Finland
161
145
337
280
159
293
6 205
5 438
3 060
3 538
6 045
4 183
-6 079
-8 327
-3 436
-5 865
-6 902
-4 502
5 299
5 431
3 193
3 319
5 553
3 450
Other
Adjustments made upon
consolidation
Total
Interim Report January - September 2012
13(16)
Note 3 Impairment losses
Group
2012-01-01
2012-09-30
2011-01-01
2011-09-30
Impairment losses
-3
-4
Total
-3
-4
Assets
Impairment losses for the year on property, plant and equipment amounted to SEK 3 million and were related to the Teracom Sweden segment.
Impairment losses in the corresponding period last year, SEK 4 million, was for property, plant and equipment in the Teracom Sweden segment.
Interim Report January - September 2012
14(16)
FORTHCOMING FINANCIAL REPORTS
Year-End Report January 1 – December 31, 2012
February 12, 2013
On behalf of the Board of Directors
……………………………………………
Gunilla Berg
Acting President and CEO
Auditor's report of its review of the interim financial information in summary (interim report)
prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act
IntroductionWe have conducted a review of the report for Teracom Group AB for the period January 1-September
30, 2012. The Board of Directors and President are responsible for the preparation and presentation of this interim
financial statement in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express
an opinion on this interim financial statement based upon our review.
The purpose and scope of a reviewWe conducted our review in accordance with the Swedish Standard on
Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the
Entity," issued by FAR. A review consists of making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review has a different purpose and is
substantially more limited in scope than the purpose and scope of an audit conducted in accordance with ISA and
other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of
assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the
conclusion expressed based on a review does not give the same level of assurance as a conclusion based on an audit.
ConclusionBased on our review, nothing has come to our attention that causes us to believe that the accompanying
interim financial statement does not, in all material respects, accord with IAS 34 and the Swedish Annual Accounts
Act for the Group, and the Swedish Annual Accounts Act for the Parent Company.
Stockholm, October 26, 2012
PricewaterhouseCoopers
………………………
Sten Håkansson
Authorized Public Accountant
Interim Report January - September 2012
15(16)
FOR MORE INFORMATION, CONTACT:
Gunilla Berg, Acting President and CEO and CFO of Teracom Group, +46 8 555 421 37
Teracom Group AB
Box 30150
104 25 Stockholm
Tel: +46 (0) 8 555 420 00
Fax: +46 (0) 8 555 420 01
www.teracomgroup.se
CIN: 556842-4856
Interim Report January - September 2012
16(16)