Econet Media Group has bought the asset of Modern Times Group (MTG) free-Tv broadcasting and production Businesses in Nigeria and Ghana for an undisclosed price.
According to MTG, the sales reflect its ongoing strategic transformation from a traditional broadcaster into a digital video entertainment company.
The African free-TV and production businesses generated sales of €2.15 million and Earnings Before Interest and Taxes (EBIT) of 27 million Swedish Krona (SEK) for the first 11 months of 2016 whereby Ghana and Nigeria contributed with sales of SEK18 million and EBIT of SEK11 million.
The sale of MTG’s businesses in Ghana and Nigeria will result in a preliminary net capital loss of some SEK24 million, which will be reported within items affecting comparability (IAC) in MTG’s Q4 2016 financial results.
MTG says that the ongoing transformation is justified as it aims to move from a traditional broadcaster to a digital video entertainment company.
Modern Times Group is a Swedish digital entertainment company. MTG was formed out of the media holdings of investment company Kinnevik, which in 1997 was distributed to the company stockholders
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