MTG sells Czech TV holding to Denemo Media

The Swedish Group has fully consolidated FTV Prima Holding, which contributed USD 138.2 million of sales and USD 22 million of operating income (EBIT) for the twelve months to the end of Q3 2016. Closing is subject to local regulatory approval and expected in Q1 2017.

MTG sells 50% shareholding in FTV Prima Holding in Czech Republic for 11.2x trailing 12 month EBIT and total cash return of 2x original investment, with the objective to use of proceeds to increase ownership in InnoGames from 21% to 51%, betting from traditional broadcaster into global digital video entertainer.

The company acquired 50% of FTV Prima Holding in 2005 for € 87 million (USD 94 M) in cash. The total cash return on the investment, including dividends received and the sale price, is expected to amount to approximately USD 0.8 billion.

Denemo Media is a joint venture between Denemo Invest (75%), subsidiary of Vladimir Komar’s Alphaduct, and Ges Media Asset (25%), part of Ges Group, which already owns 50% of FTV Prima Holding.

Jørgen Madsen Lindemann, President and CEO, MTG: ‘Prima Group is a great business with a very talented team delivering popular news and entertainment programming. Over the past 11 years, our local Czech partner and we have transformed the Czech media landscape by launching a wide variety of channels and services, and establishing Prima as the go-to brand for information and entertainment. We wish the team continued success with our local partner and the new investor’.

‘We are considering investing part of the proceeds in moving up to a majority position in InnoGames. This is perfectly in line with our strategy to invest in relevant, complementary and scalable digital content and communities, and online gaming is the third vertical in our MTGx digital video entertainment portfolio. This is another key step in our ongoing transformation and we are constantly reviewing opportunities to expand our digital operations and footprint further’, added the executive.