Good morning, ladies and gentlemen, and thank you for holding. Welcome to MTG's Q4 and full year 2016 earnings call. At this time, all participants are in a listen-only mode. After the presentation, participants will have the opportunity to ask questions, at which time instructions for the question and answer session will be given. If any participant has difficulties hearing the presentation, please press star followed by the zero for operator assistance. I will now hand the call over to your host, President and CEO, Mr. Jørgen Madsen Lindemann, who is joined on the call today by CFO Maria Redin. Please go ahead.
Thank you, operator. Good morning, everyone. In order to make this call as helpful as possible for you, please follow the presentation slides that you can reach from the link on the front page of mtg.com, which I will refer to during today's call. Before we get into the numbers, let's take a step back and look at the MTG strategy. Please click through to slide number two. We are transforming MTG from a leading traditional broadcaster into a leading digital global video entertainer. We are growing sales and profits and returning cash to shareholders at the same time. On slide three, you can see that 2016 was an important and successful year for MTG. We delivered on our objective to accelerate our sales growth and increase our profits. We took a number of very important steps to shape our business for the future.
We have been on a journey for several years to adjust our traditional business so that we can capitalize on new consumer behavior. We accelerated even further along this path in 2016. We have rolled out new channels and services, including Viafree in Scandinavia and Viaplay in the Baltics, and added fantastic new original programming and sports product, as well as building our global leading digital verticals. We have also taken a number of significant steps in our strategic portfolio realignment. This includes exiting CIS region in general and CTC Media in particular, divesting our free TV businesses in Africa. We now also signing an agreement to divest our 50% stake in Prima in the Czech Republic. We are putting the proceeds to work by investing in global digital verticals, of which the third and most recent is online gaming.
We completed the acquisition of 21% of InnoGames in December. The ambition is to increase our holding to 51% once the Prima sale has closed. This portfolio realignment will continue as we continue to transform the business. Full-year sales were up 5% on an organic basis, which shows that our products are more relevant, more available, more popular, and more valued than ever before. Our digital sales almost doubled during 2016. Even more important is that we managed to increase our profits despite currency headwinds of almost SEK 250 million, divestments of profitable businesses, and significant investments into MTGx. More customers, new products, and new partners, as well as continued disciplined execution on our cost transformation program, have enabled us to step up our investments in content and digital while also growing our profits.
We continue to balance this investment with shareholder returns and are therefore proposing an increased dividend to SEK 12, representing a payout ratio of 93% and well above the declared 30% policy. Turning to slide four, you can see that we delivered 8% organic growth in Q4, which is the highest level seen in over five years. This also marked an acceleration from Q3 and showed that our growth was not simply a function of the Olympics in Sweden. Profits were up 28% in the quarter, despite our investments in MTGx and the disposals of a number of profitable but non-core businesses over the past year. This was possible because of the combination of organic growth and cost transformation savings.
This cost transformation is essential as it enabled us to continue to invest in both sports rights and broader original programming, as well as our digital expansion, which are creating the foundation for our future growth. In addition to the recent M&A announcement regarding InnoGames, Africa, and the Czech Republic, we have also signed a number of important content deals, including the prolongation of NFL rights to 2022, securing the Nordic rights for the 2020 European Handball Championship, and a new multi-year contract with Fox+ in the Nordics. We have also prolonged our distribution agreement with TDC in Denmark, which will increase the penetration of our channels. Moving to slide five, you can see that the group reported sales were up 10%, fueled by higher sales across all segments. Our increased profitability was driven by the performance of the Nordic and international entertainment businesses.
The transactional currency headwind in the quarter was amounted to SEK 45 million, most of which impacted the Nordic entertainment. The year-on-year comparison also includes the impact of various businesses that have been bought and sold. The Russian and CIS pay TV operations that we sold at the end of 2015 contributed SEK 22 million in profit in Q4 2015. Now to slide number six and our Nordic entertainment sales, where we were up 9% on an organic basis. Both our Nordic free TV and radio sales were up on constant exchange rates. Linear viewing levels have continued to decline in all three markets, but this was more than offset by higher advertising prices and very healthy AVOD growth. We are the leading player in the programmatic sales, with 60% share in Sweden, and Viafree is developing fast.
Norway reported double-digit sales growth with higher viewing shares for the Women's European Handball Championship that Norway won for the seventh time. Nordic Pay TV sales were up at constant exchange rate, and that's driven by Viaplay subscriber and ARPU growth, as well as the new distribution agreement for our new premium sports channel in Sweden. In a new initiative this morning, we'll be launching a new offering for open fiber network subscribers in Sweden. We have now agreement with 26 of those networks in Sweden, which together reach 1 million homes. We are offering triple play packages that guarantees the lowest broadband price point when you also take our content offering. This is perfectly in line with our strategy to make our content as broadly available as possible to consumers through all networks. Viaplay set new records again this quarter.
There were three this time, the highest number of started streams, the highest sales of movies and series packages, and our first kids original, "The Great Experiment," was the most viewed kids premiere ever on Viaplay. Swedish Quality Index consumer survey named Viaplay as the streaming service with the most satisfied customers for the second year running. In December, Viaplay won the Apple TV App of the Year award for Sweden, Denmark, Norway and Finland. Profits for the Nordics were up 17% on the back of the organic growth and cost transformation. Turning to slide seven, sales of our international entertainment business were up 8% on an organic basis, and we reported our highest ever quarterly profit. The underlying performance was of course, even better when you consider the businesses that we have sold in the last year.
Please note that the capital loss relating to Ghana was taken in the segment and not as an Items Affecting Comparability as previously communicated, because it ended up as SEK 10 million and therefore below the threshold that we have for IACs. We expect an insignificant capital loss from Tanzania when that closes during Q1, so the total impact will be lower than the SEK 50 million previously estimated. International free TV and radio sales were up at constant exchange rate with double-digit sales growth in Bulgaria. International Pay TV sales were down at constant exchange rates following the disposal of the international wholesale channel business at the end of 2015. Sales were up on an organic basis. While still early days, we have seen a promising start for Viaplay in the Baltics.
Turning to slide number eight, MTG's studio sales were up 8% on an organic basis as demand for scripted drama and branded entertainment continued to rise. The timing of our second half year production schedules also favored Q4, as we indicated in the last quarter result. "Midnight Sun" and "Nobel," two of our award-winning drama series premiering Q4 in a number of countries with fantastic audience shares. We also premiered the sequel of "The 100-Year-Old Man" at the end of December, beating all previous records for Swedish cinema premieres. Profits for the studio business improved for the fourth consecutive quarter due to the enhanced product mix and strong storytelling. Turning to slide number nine, you can see that MTG sales were up 8% at constant exchange rates. The growth rate in Q4 was impacted by two factors.
First of all, the schedule of esports events where Q4 2015 sales were boosted by the Dota Major Championship in Frankfurt, a nine-day event with a prize pool of $3 million. The event calendar is an important factor as we will from time to time see quarterly variation in the growth of our esports businesses. This is why the 12 months pro forma growth of 45% provides a much more accurate and relevant picture of the actual development and potential. The second factor that affected the Q4 rate was the sharp fall in industry-wide advertising prices on YouTube, which has impacted Zoomin.TV in particular. Zoomin.TV is now more focused than ever on growing its own digital-first content creation capabilities and proportion of branded entertainment sales.
Splay has continued to perform well, more than doubling its sales for the quarter and the year, driven by a high proportion of B2B sales from its brand entertainment and digital influencer campaigns. We closed the acquisition of the first 21% of InnoGames on December 1st, and therefore took in one month of associated company income in Q4, which amounted to SEK 6 million. InnoGames full-year sales grew by 25% to EUR 130 million with an EBITDA margin of approximately 20%, i.e., beating the sales and EBITDA projections that we gave back in October. MTGx reported a total operating loss of SEK 84 million in Q4. This reflects the fact that we have been stepping up our strategic investment in esports and throughout 2016.
We have added new people, continued the geographic expansion, introduced new features such as live virtual reality, and invested in infrastructure with new studios, most recently in Paris. All of this enables more events and more tournaments around the world and leads to partnership agreement that we have recently signed with the likes of Vivendi, Telefónica, PlayStation and YouTube. Looking at the full-year development, MTGx sales were up 35% on a pro forma basis, and we are well positioned for continuing high growth in 2017. We remain focused on growth rather than profitability at this stage in the development of these exciting companies, given the huge long-term potential that we see in esports in particular. Having said that, we still expect the losses to gradually come down during 2017. I will now hand the call over to you, Maria, for your comments
Thank you, Jørgen, and good morning, everyone. If you turn to slide 10, the reported sales were up 10%. This included 8% organic growth, a 1% contribution from acquisition, a negative 2% from divestments, and a positive 3% from FX, driven by the appreciation of the euro and the Norwegian and Danish kroner. Operating income was up compared to last year as anticipated and was a function of the combined impact of the organic growth and the cost transformation. Please also remember the year-on-year impact on the disposal that we made, which generates an operating profit of SEK 22 million in Q4 2015. Also, this year's profit included a net capital loss of SEK 10 million related to the divestment on our free TV business in Ghana. The transaction FX headwind amounted to SEK 45 million in the quarter and takes SEK 245 million for the full year.
Looking forward, we continue to expect a negative FX transactional impact of approximately SEK 75 million from 2017. Items Affecting Comparability included a SEK 95 million impairment charge related to Zoomin on the back of the advertising price pressure that Jørgen talked about earlier. However, there's no impact on the segment or the group profit as it has fully been offset by a corresponding adjustment on the option value to acquire further shares in the company. If you then turn to slide 11, our cost transformation is on track, and we generated savings over SEK 140 million in Q4 and SEK 450 million for the full year 2016. We continue to expect annual savings of approximately SEK 600 million from the program. The cash flow impact from restructuring was approximately SEK 60 million in the quarter, taking the total so far to SEK 450 million.
Looking forward, there is around SEK 70 million of cash still to be paid out, which then takes the total cash cost of the program to approximately SEK 520 million, i.e., it is slightly lower than our original forecast of SEK 550 million. If you then turn to slide 12, net cash flow from operations was up in the quarter as well as the full year despite restructuring payments. We ended the quarter with a net debt of SEK 2.1 billion, equivalent to 1.4 times trailing 12-month EBITA before Items Affecting Comparability. That's it for my comments, and back to you now, Jørgen.
Thank you, Maria. If I can ask you to go to slide number 13. In summary, we have again grown our sales to record new levels, which clearly demonstrate that we have more relevant and more available products than ever before. Profits were up 28%, despite content and digital investments, currency headwinds, and the disposal of some profitable businesses. This increased profitability and higher margins are a function of both the volumes and value growth, as well as the benefit of the cost transformation process that we started back in 2015. As a result, we can invest in businesses at the same time as returning money to shareholders.
The divestment of our national broadcast operation in the Czech Republic and the intention to reinvest that money into a majority position in online gaming company InnoGames also clearly indicates yet again the path that we are on and our determination to review the portfolio in order to fund the group's transformation into a leading global digital video entertainer. That concludes our commentary on the results. Over to you, Operator, now to start the Q&A session, please.
Thank you, ladies and gentlemen. We are now ready to register your questions. If you would like to ask a question, please press star one, followed by on your telephone keypad, and you will enter a queue. Should you wish to cancel, please press star two. The first question comes from Adrien de Saint Hilaire from Morgan Stanley. Your line is open. Please go ahead.
Yes. Good morning, everyone, thanks for taking those questions. My first question is, Maria, can you give us perhaps the profile of the international division ex Czech Republic, i.e., what was the EBIT of that division for 2016, excluding Czech Republic? I know you've given us the figure until Q3, I think the Q4 performance was very good. That's my first question. Perhaps also, can you give us the organic growth rate outlook of that division, excluding Czech Republic? Secondly, Jørgen, can you be a bit more specific about the outlook that you expect for the Nordic? Should we expect the 9% organic growth rate to be sustained in the first half of the year, for example, with the price increases? The last question, perhaps again for you, Jørgen. When you mentioned the dividend, it's indeed well above the target payout.
Any reason why this should continue to be the case?
If I start with your question on Czech. Given that the transaction hasn't closed yet and we do not disclose the individual country performance in the segment, we will not disclose the 2016 full year numbers. As you say, we do have a very strong result for Q4, it would be correct to assume that the full-year numbers for 2016 would be higher than the full 12 months up until Q3 numbers. If then looking at the outlook on the growth, like-for-like basis, we see continued growth on back on the product investments we've done in the segment.
On your question on Nordics, I think as the ambition is to grow 2017 as well, to grow revenue and to grow profit as well for the Nordics. We see very good traction on the products. We are guiding, as you know, exactly on what levels and so forth, the ambition is to grow revenue and to grow profit from the Nordics. On the dividend, as I mentioned, we have had a balanced approach always, we will be able this year to pay out increased dividend and at the same time investing into the businesses. As you can see, 2016, we have done, and that is, of course, what we are communicating now, SEK 12 dividend payout, which is higher than last year. That is the balance that we have had investing and also had the shareholder friendly approach when it comes to dividend.
Thank you.
We will now take our next question from Victor Höglund from SEB. Please go ahead.
Yes. Good morning and congratulations on good numbers. Can you just say the renewed TDC deal, is that improved or less good for you than the last one? TDC have said that they expect synergies towards content providers now that they have Get on board. My question is your total deal with Get and TDC up or down? There's been a lot of rumors on the free and pay TV in Sweden, in Nordics. Can you say, are they very close tied together, in your mind, Nordic free and pay, or can they be driven as two separate units over time? The MTGX losses are up. Can you say if that's mainly related to lower sales on ESL or is it because price pressure is higher in Zoomin.TV?
The last question, just on FX, I at least expected that you might have increased that number, but you retain it at 75. Can you just explain how you think around that and maybe say something around 2018 also on FX? Thank you.
Yeah. When it comes to the distribution deals, we're normally not commenting on it. I think obviously we have invested into content. We have done that in Norway, and as you can see, we have a very strong traction in Norway, so our product is more relevant. The same goes, of course, for the Danish business as well, where we have invested and the product is more relevant. We are coming out very well out of these negotiations. We do hope so, the partners feel that as well, that they got from us a better product, which of course then also hopefully results in better monetization for us, the investments that we have made. That is also what you see then in the results in general with the distribution deals that we have made. We are very happy with these two partnerships.
They are very important and they are very strong partnership, long lasting. That, of course, improves the products that we are having. When it comes to the free and pay in the Nordics, yeah, it is very connected and that is the thing, is the strength that we are having is of course that we have several revenue streams to capitalize on the content. When we acquire content, we can decide if we want to put it on Viaplay first or our pay TV business first, or we want to put it on our free TV. That is a very strong interlinked module actually that we are having in the Nordics, which is very helpful for us. Now with this quarter, as you can see, we are growing both free TV, there's very strong growth in free TV and also pay TV.
Again, the content is distributed where it makes sense in the Nordics, and that can be free and that can be pay. That freedom of course makes it possible for us to enhance the consumer experience and also the monetization of the content. Those two businesses are very much interlinked. When it comes to MTGX, the losses are to a large extent related to ESL, and that is the investments of DreamHack. That is the investments that we do, as I said, in new studios, in virtual reality and so forth. Now in the next quarter, Q1, or this quarter, Q1 2017, we are launching a big DreamHack event for the first time, I think in Las Vegas now. We are planting flags, which is the ambition to do much more. Last quarter, Q4, we had the first big event in Rio for ESL.
The losses in MTGX are related to a large extent to the ESL business, and that is the continued investment in the product which we believe is quite important at this stage. There was a question on currency?
Yes, I will take that one. Currency, we'll stay still at SEK 75 million for next year. I mean, it is a net impact on the timing when we down the hedges, we go up to 18 months forward. It is still a small part that is unhedged, but based on the spot rates, we do still expect it to remain at SEK 75 million. However, the outlook then for 2018, which you also asked, is then going to be slightly greater due to the increase we saw during Q4. You should expect an additional SEK 75 million to come in also in 2018. That is based on how the current spot rates are, as the majority of the 2018 is still not hedged.
Okay. If I may, just on ESL, very short question. Can you just comment on, if you compare the profit level on the events and the geographies where you had ESL present last year versus this year, is margin up or down? I understand it's going down due to you investing, but like for like, if you think around, can you say is margins up or down on current events that have been around?
Yeah, I think the current events, of course, when we have events taking place the same places like we did now with the Katowice is coming out in March again. Of course, these events constantly improve their margins. That goes without saying. Then, of course, when you look at the new events is, of course, what is costing money when you're going in first time in Rio, Las Vegas or whatever. That is what costs you money. It goes without saying that the focus is to create new experiences to also continue to enhance the events that we already have. The ambition is, of course, to make sure that we capitalize better and better on the events that we then are launching and which we'll receive repeatedly coming back going forward.
Thank you very much. Thank you.
As a reminder, to ask a question, please press star one on your telephone keypad. We will now take our next question from Lisa Yang from Goldman Sachs. Please go ahead.
Hi. Good morning. My first question is on Nordic Entertainment. Clearly, the growth is very impressive. To come back to Adrien's question, can you explain again the various drivers of that growth, and how do you see that for 2017? How much was free TV ad versus paid TV? Do you expect further, I would say, price increase or distribution deals that could maintain especially the output growth in paid TV? The second question is on the free TV business in the Nordics. Could you talk about the levels of PUT levels you're seeing at the moment, and whether you plan to, at some point, change your commercial target? Related to that question as well, what level of gross price increase you're seeing in 2017? Given the ongoing pressure on the ratings, how sustainable do you think that price increase is going to be in the future?
The last one is on MTGx, and what level of loss would you expect for 2017? Do you still expect breakeven in 2018? Thank you.
Yeah. I think when you look at the cost, sorry, the growth drivers in 2016 for the Nordic business. Viaplay had a very good year. You can see as well that also our premium subscriber business, we are growing 9,000 subs in Q4 as well. That was also very good. The free TV business, take Norway as an example. They are growing double digit in a flat market in Q4. Sweden is growing in a market which also would have been flat. It is the performance of the businesses of the different products that we have invested in, which is actually helping that growth. It's not one specific. The radio business we're having is also good. The radio market is good, and we are increasing our listener share. It is share gains.
It is more investment in locally produced content, in the sports content that we are having as well, which have helped us getting more customers on board in the Nordics, also therefore driving the revenue. Of course, also these small customers, we've also seen, of course, increased profit as well, also due to the cost transformation that we have had there as well. That despite the currency headwind. It is a very strong quarter. The model that we are having, where we have multiple revenue streams to capitalize on the content, it seems to be working very well for us. When you look at the free TV PUT levels, they have been declining in the full year and also in Q4, particularly, of course, in the young target groups.
If you look at three plus as an example in Sweden, the three plus park level has actually increased in full year. It is the young target groups which actually are decreasing in terms of PUT levels. Locally, we have invested, as you can see, in Viaplay and Viafree. We have Viaplay. Viaplay doubled the revenue in Q4. Of course, many of these millennials hopefully take some of our products, which we have invested in for some time now. When it comes to the pricing, yes, we do expect higher prices in 2017 for us. We do that, of course, on the back of us growing our relevance, growing our share. MTG Sweden had a very strong year, they grew the share.
We had very strong year as well in Norway, also Q4 Norway and Sweden we were growing our share. That is, of course, related to how much you can charge for your product. Our target groups continue to be very relevant, that, of course, enable us to be able to price properly for our product. When you talk about MTGX and losses, we do expect to continue to invest, as we said earlier, in the different verticals in 2017. We also do expect the losses to be lower in 2017 than in 2016.
Do you still expect breakeven in 2018 in MTGX?
Yeah. That is the ambition, that we are going for breakeven in 2018 in MTGX.
Thank you very much.
As a reminder, to ask a question, please press star one on your telephone keypad. We will now take our next question from Mikael Laséen from Carnegie. Please go ahead.
Okay. Thank you. Can you say how much the organic growth was for the esports side in Q4?
I would sound like a golfer, because if you take out this event which we didn't have, which of course impacted the fourth quarter, then of course you would see strong growth in Esports, but that is a bit unfair to do that, in all fairness. I think we should look at it on an annual basis, and there we are growing 45%. I think what we need to be mindful of and need to be good communicating is, of course, the schedule of events. You will see that some events we had in, whatever, Q1 2016, or 2017 might not come in in Q1 2018, and so forth, going forward. We need to be mindful about the schedule.
The underlying business 2016, it's growing 45%, and if you look at the market forecast for Esports, it's expected to grow around 30% in 2017, something like that, and continue so. Of course, our ambition is at least to follow that and hopefully beat it. It's of course, something we would like to aim for.
Okay. If you have the same amount of large events, how much can you grow from the current base, the monetization and utilizing what you have already?
That is not just about the events. It is also all the other things which we have around the events, and also how many distribution agreements that we are making. Now, as I said, we just announced four bigger ones. We made a big deal with Vivendi in France and now building a big platform in France and is going to hopefully have one of the big events in Paris or at least around one of the biggest city in France. We made a big deal with Telefónica in Spain and that is, of course, also something which would generate revenue. We made a deal with YouTube on one of the tournaments, global deal with YouTube.
We made a bigger deal with Sony PlayStation as well on Sony PlayStation 4, where we are getting our app integrated there as well, which we're also investing in to make sure that is happening as well. It is not just the events. It is the tournaments, it is ESEA, which is also growing very fast actually. It is the whole monetization of the content. We see more partners coming in. It is the esports channel which also has very good traction. It is actually all the revenue streams which we would like to see do better in 2017 than 2016. It is not just the isolated events.
Okay, good. The ESL deal with YouTube, that's an exclusive agreement, I guess. Is that changing the way you look at distribution or was it this one-off?
No, that is normal that either you make a non-exclusive deal or you make exclusive deals or whatever. There's different opportunities for this is an exclusive deal when it comes to the English language right globally on that specific tournament. It is a non-exclusive deal when it comes to the local language right. That we decided to get the tournament even stronger promoted is a one-year deal. Together with YouTube build a super strong tournament and see how much marketing power that they can put behind such a tournament. That is a trial that we're doing with YouTube right now. Of course, we will have these tournaments in whatever, in Brazil, in China, in whatever Asia, all around and so forth in the local languages. That is what we can say on that deal. I'm very excited about it.
You need to try a lot of new stuff as well and we need to see how much YouTube can drive that tournament. It's going to be very exciting to see.
Okay, great. I had a question regarding also China, your position there today and the outlook for esports in general and the competitive situation if you can manage on your own or if you need partnerships.
Yeah, I think as a general speaking, of course we always, as you can see, interested in partnerships. I just named a few which we have concluded recently. That of course goes for China as well, that we would like to find a strategic partner which can help us accelerate our products and the sport in China. It is a very interesting market and a very fast-growing market also for esports and we have offices there already. We have content there already and we're also taking content from China and distributing to a range of our customers as well on our products. There is a collaboration already happening. We don't have the biggest strategic partner there yet, but that is something that definitely is high on the agenda for us to find out who we could team up with in China to accelerate the business even faster.
That is an opportunity like we have done now with Vivendi in Telefónica and so forth in some of the other territories. The whole idea is to get the sport out and widely spread as fast as possible.
Okay, great. My last question is regarding this BAMTech Riot deal that was announced in December for League of Legends. Is that impacting your revenues or position in any way?
No, it is not actually. It's nothing to do with us. Of course, we're looking at the deals and but again our products are so widely spread and so widely distributed. We have so many different tournaments. As I said then the deal with YouTube is one out of many tournaments that we are having and the deal with InnoGames and so forth, it's not affecting us.
Okay, thank you.
As a reminder to ask a question, please press star one on your telephone keypad. We will now take our next question from Rasmus Engberg from Handelsbanken. Please go ahead.
Hi, good morning. I had some remaining questions on InnoGames. You said you're going to reinvest the money from the Czech deal when that is announced. When do you expect the Czech deal to close and when do you expect to have a majority stake in InnoGames? Is it possible to answer that question?
I think what we have said is we have an intention to invest up to 51% in InnoGames and the Czech deal is going to be closed we believe perhaps in 30, 45 days from now depending on regulatory approval. That is something that timeframe that we're looking at.
Okay. What did you say about InnoGames profitability? I heard they had EUR 130 million in sales for 2016 then what was the profitability you gave?
It was 20% EBITDA margin.
EBITDA?
Yes, it was.
Do you anticipate that your EBIT will be, is it 3%-4% below? Given that you report EBIT, that's just what I'm trying to understand the difference between.
Yeah. Something like that.
Yeah. Something in that region is fair to assume. Of course, 20% CAGR growth, revenue growth was very encouraging. They came in higher than we announced when we acquired the company I think it's fair to assume that 3%-4% is fine though. Yeah.
Yeah. Just on that matter, they haven't launched any new games recently yet. They are still in the pipeline. Is that right?
Yeah. No. They have launched, for instance, the mobile version of Forge of Empires, which is growing like a rocket. They have several new games in the pipeline, which will come out in Q2. Then, of course, they have launched a range of, or enhanced the range of the mobile services on the existing games that they're having, like Forge of Empires, Elvenar, and so forth. This is something which is coming in Q2, all the new games. They are testing now soft launches and so forth, and they claim that it looks fairly okay, actually.
A final question. I think when you released, just a detail, when you released that you'll sell the Czech business, you didn't really give a capital gain. What is that booked at?
Well, we will release the capital gain when we actually close the transaction.
Okay.
As you can see, we had quite a significant cash gain on the transaction.
Just coming back to the question on international, was the Czech Republic the strongest growing business in the fourth quarter in that segment, or was it broad-based?
It was actually across the different businesses. As I said, Bulgaria also had very strong growth. We saw Estonia, Latvia, Lithuania. We saw as well Czech, and we saw Bulgaria having very good traction actually in the quarter.
Right. Okay. Thank you.
That concludes the question and answer session. I will now hand the call back to Jørgen Madsen Lindemann for his concluding remarks.
Yeah. Thank you for all your time today. We will announce Q1 results on April the 21st and hold our AGM on May the 9th, and hope to talk and meet with as many of you as possible before then. Thank you for your continued interest in MTG, and goodbye for now.
That concludes today's conference call. Thank you for your participation.