Good morning, ladies and gentlemen, and thank you for holding. Welcome to MTG's Q4 and Full Year 20 16 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. I will now hand the call over to your host, President and CEO, Mr.
Juergen Madsen Lindtmann, who is joined on the call today by CFO, Maria Reddin. Please go ahead.
Thank you, operator, and good morning, everyone. In order to make this call as helpful as possible for you, then please follow the presentation slides that you can reach from the link on the front page of mtg.com and 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. So please click through to Slide number 2. We are transforming MTG from a leading traditional broadcaster into a leading digital global video entertainer, and we are growing sales and profits and returning cash to shareholders at the same time.
On Slide 3, 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, and 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 and we accelerated even further along this path in 2016. We have rolled out new channels and services, including VIA Free in Scandinavia and VIA Play in the Baltics and added fantastic new original programming 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 and 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 reason is online gaming. We completed the acquisition of 21% of Innogames in December, and the ambition is to increase our holding to 51% once the Prima sales 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 value 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 250,000,000 divestments of profitable businesses and significant investments into MGG X. 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 DKK 12 representing a payout ratio of 93% and well above the declared 30% policy. Turning to Slide 4.
You can see that we delivered 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 MDGX 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 and as it enabled us to continue to in both sports rights and border original programming as well as our digital expansion, which are creating the foundation for our future growth. In addition to the recent M and 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 the new multiyear contract with Fox Plus 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 5, 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 $45,000,000 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 $22,000,000 in profit in Q4 2015. Now to Slide number 6. 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 percent share in Sweden and Biofree is developing fast.
Norway reported double digit sales growth with high viewing shares for the Women's European Handball Championships that Norway won for the 7th time. Nordic Pay TV sales were up at constant exchange rate and that's driven by VIA Play subscriber and ARPU growth as well as a new distribution agreement for our new premium sports channel in Sweden. In a new initiative this morning, we will 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 1,000,000 homes. We are offering triple play packages that guarantee 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. Fireflies set new records again this quarter. There was 3 this time, the highest of started streams, the high sales of movies and series packages and our 1st 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 2nd year running. And 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 7. Sales of our 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 item affecting comparability as previously communicated because it ended up as $10,000,000 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 50,000,000 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. Days were up on an organic basis. While still early days, we have seen a promising start for via play in the Baltics.
Turning to Slide number 8, MGD Studios sales were up 8% on an organic basis as demand for scripted drama and brand entertainment continued to rise. The timing of our second half year production schedules also favor Q4 as we indicated in the last quarter. Midnight Sun and Nobel, 2 of our award winning drama series premiered in 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 premiers. Profits for the studio business improved for the 4th consecutive quarter due to the enhanced product mix and strong storytelling.
If you then turn to Slide 9, you can see that NCD sales were up 8% at constant exchange rates. The growth rates in Q4 was impacted by 2 factors. First of all, the schedule of esports events where Q4 2015 sales were boosted by the DotA Major Championship in Frankfurt, a 9 day event with a price pool of $3,000,000 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 form a 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 Zummin in particular.
Zummin is now more focused than ever on growing its own digital first content creation capabilities and proportion of branded entertainment sales. Splayed 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 acquisition of the first 21 percent of Inu Games on December 1 and therefore took in 1 month of associated company income in Q4, which amounted to DKK 6,000,000. Inu Games full year sales grew by 25% to EUR 130,000,000 with an EBITDA margin of approximately 20%, I. E, beating the sales and EBITDA projections that we gave back in October.
NTG has reported a total operating loss of $84,000,000 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 to rapid 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, Telefonica, PlayStation and YouTube. Looking at the full year development, MTG X sales were up 35% on a pro form a basis, and we are well positioned for continuing high growth in 20 17.
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. That concludes my comments. So I will now hand the call over to you, Maria, for your comments.
Thank you, and good morning, everyone. If you could turn to Slide 10, the reported sales were up 10%. This included 8% organic growth, a 1% contribution from acquisition and negative 2% from divestments and a positive 3% from FX driven by the appreciation of Europe and the Norwegian and Danish krona. Operating income was up compared to last year as anticipated and was a function of the combined impact on 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 $22,000,000 in Q4 2015.
Also this year's profit included a net capital loss of $10,000,000 related to the divestments on our free seater business in Ghana. The transaction FX headwind amounted to $45,000,000 in the quarter and $245,000,000 for the full year. Looking forward, we continue to expect a negative FX transactional impact of approximately $75,000,000 from 20 17. Items affecting comparability included a $95,000,000 impairment charge related to zooming on the back of the advertising price pressure that Jurgen talked about earlier. However, there is 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 10 or 11, our cost transformation is on track and we generated savings over $140,000,000 in Q4 and $450,000,000 for the full year 2016. We continue to expect annual savings of approximately $600,000,000 from the program. The cash flow impact from restructuring was approximately $60,000,000 in the quarter, taking the total so far to 450,000,000 dollars Looking forward, there is around $70,000,000 of cash still to be paid out, which then takes the total cash cost of the program to approximately 520,000,000 dollars I. E. It is slightly lower than our original forecast of 550,000,000 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 €2,100,000,000 equivalent to 1.4 times trailing 12 months EBITDA before items affecting comparability. So that is it for my comments and back to you now, Jorgen.
Thank you, Maria. And if I can ask you to go to Slide 13. So in summary, we have again grown our sales to record new levels, which clearly demonstrates 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 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. So over to you, operator, now to start the Q and A session, please.
Thank you. Thank you, ladies and gentlemen. We are now ready to register your questions. The first question comes from Adrien de Saint Hilaire from Morgan Stanley. Your line is open.
Please go ahead.
Yes. Good morning, everyone, and 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, but I think the Q4 performance was very good.
So that's my first question. And perhaps also can you give us the organic growth rate outlook of that division, excluding Czech Republic? Secondly, Jorgen, 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? And the last question, perhaps again for you, when you mentioned the dividend, it's indeed well above the target payout.
Any reason why this should continue to be the case?
So 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 segments, We will not disclose the 2016 full year numbers. But as you say, I mean, we do have very strong results for Q4. So it would be correct to assume that the full year numbers for 2016 would be higher than the sort of 12 months up until Q3 number. And if then looking at the outlook on the growth, I mean like for like basis, we see continued growth come back on the product investments we've done in the segment.
And 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, but 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. So we will be able this year to pay our 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, 12th kroner 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 Hoglund 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? They have TDC have said that they expect synergies towards content providers now that they have GET on board. And so my question is, is your total deal with GET and TDC up or down?
And then if you can 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 2 separate units over time? And 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 Sumin? And the last question just on the FX. Maybe you 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 18% also on FX? Thank you.
Yes. When it comes to the distribution deals, we are 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.
And the same goes, of course, for the Danish business as well, where we have invested and the product is more relevant. So we are coming out very well out of these negotiations, and 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. And that is also what you see then in the results in general with the distribution deals that we have made. So we are very happy with these two partnerships.
They are very important, and they are very strong partnership, long lasting. And that, of course, improves the products that we are having. When it comes to the free and pay in the Nordics, yes, it is very connected. And that is, I think, is the strength that we are having is, of course, that we have several revenue streams to capitalize on the content. So when we acquire content, we can decide if we want to put it on via play first or you want to put it on our free TV.
So that is a very, very strong interlinked muscle actually that we are having in the Nordics, which is very helpful for us. So now in this quarter, as you can see, we are growing both free TV. There's very strong growth in free TV and also pay TV. But again, the content is distributed where it makes sense in the Nordic, and that can't be free and that can't be paid. And that freedom, of course, makes it possible for us to enhance the consumer experience and also the monetization of the content.
So those two businesses are very much interlinked. When it comes to FTGX, the losses are, to a large extent, related to ESL. And that is the investments or Dream Act. That is the investments that we do, as I said, in new studios, in virtual reality and so forth and so forth. Now in the next quarter, Q1 or this quarter, Q1 2017, we are launching a big dream having event for the first time, I think, in Las Vegas now.
So we are planning flags, which is the ambition to do much more. Last quarter, Q4, we had the first big event in Rio for ESL. So the losses in SGX 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. Then there was a question on currency.
Yes, I will take that one. Currency in full stays still at $75,000,000 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 of it unhedged based on the spot rates. So we do still expect it to remain at 75,000,000 dollars However, the outlook for 2018 which was out is then going to be slightly greater due to the increase we saw during Q4.
So you should expect an additional $75,000,000 to come in also in 2018. But that is based on how the current spot rates are as the majority of the 2018 is still not hedged.
Okay, okay. If I may just on the SL 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 on I understand it's going down due to you investing, but like for like, if you sort of think around, can you say is margin up or down on current events that are have been around?
Yes. I think the current events, of course, when we have more when we have events taking place, the same places like we did now with the culture which is coming out in March again. Of course, these events constantly improve their margins. That goes without saying. And then of course, when we 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 cost 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. But 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 see repeatedly coming back going forward.
Thank you very much. Thank
you. 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. And to come back to Adrian'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 up versus pay TV?
And do you expect further, I would say, price increase or distribution deals that could maintain especially the ARPU growth in pay TV? The second question is on the FreeTV business in the Nordics. Could you talk about the levels of put the can you're seeing at the moment? And whether you plan to at some point change your commercial target? And related to that question as well, what level of gross price increase you're seeing in 2017?
And given the ongoing pressure on the ratings, how sustainable do you think that price increase is going to be in the future? And the last one is on MTG X. What level of loss would you expect for 2017? And do you still expect breakeven in 2018? Thank you.
Yes. I think when you look at the cost sorry, the growth drivers in 2017 2016 sorry for the Nordic business, ViaPlay had a very good year, and you can see as well that also our premium subscriber business, we are growing 9,000 subs in Q4 as well. So that was also very good. The free TV business, and 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.
So it is the performance of the businesses of the different products that we have invested in, which is actually helping that grow. So it's not kind of one specific. The radio business we're having is also good. The radio market is good, and we are increasing our listeners share. So it is share gains.
It is more investment in local produced content, in the sports content that we are having as well, which have helped us getting more customers on board in the Nordics and also therefore driving the revenue. And then of course also these more customers, we've also seen of course increased profit as well also due to the cost transformation that we have had there as well. And that despite then the currency headwind. So it is a very strong quarter and 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 pot 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 3 plus as an example in Sweden, then the 3 plus target level is actually increased in full year. So but it is the young talent groups which actually are decreasing in terms of part levels. And then luckily then, we have invested, as you can see, then in Via Play, in Via Free. We have Splay. Splay doubled the revenue in Q4.
So of course, many of these millennials then hopefully take some of our products, which we have invested in for some time now. When it comes to the pricing, then yes, we do expect higher prices in 2017 for us. And we do that, of course, on the back of us growing our relevance, growing our share. In MGD Sweden, we had a very strong year, so they grew the share. We had very strong year as well in Norway and also Q4.
Norway and Sweden, We were growing our share. So that is, of course, related to how much you can charge for your product. So our target groups continue to be very relevant and that, of course, enable us to be able to price properly for our product. When you talk about SGX and losses, we do expect to continue to invest, as we said earlier, in the different verticals in 2017, but we also do expect the losses to be lower in 2017 than in 2016.
And you still expect breakeven in 2018 in NTGX?
Yeah, that is the ambition that we are going for breakeven in 2018 in MTGX.
We will now take our next question from Mikael Lassen from Carnegie. Please go ahead.
Okay. Thank you. Can you say how much the organic growth was for the Eastport side in Q4?
Yes. Then that would sound like a golfer because we if then I would if you take out this event, which we didn't have, which of course impacted the Q4, then of course, you would see strong growth in e sport, but that is a bit unfair to do that in all fairness. So 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 because you will see that some events we had in, whatever, Q1, 2016 or 'seventeen might not come in Q1, 2018 and so forth going forward. So we need to be mindful about the schedule.
But the underlying business 2016 is growing 45%. And if you look at the market forecast for Eastbourne, it's expected to grow around 30% in 2017, something like that and continue so. And of course, we our ambition is at least to follow that and hopefully beat it. So it's, of course, something we would like to aim for.
Okay. So if you have the same amount of launch events, how much can you grow from the current base, the monetization and utilizing what you have already?
But 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 4 bigger ones. So we made a big deal with event 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 so probably the biggest city in France. We made a big deal with Telefonica 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. And then we made a bigger deal with Sony PlayStation as well and Sony PlayStation 4, where we are getting our app integrated there as well, which we're also investing in to make sure that, that is happening as well. So it is not just events. It is the tournaments. It is CYSIA, which is also growing very fast actually.
It is the whole monetization of the content. We see more and more partners coming in. It is the esports channel, which also has very good traction. So it is actually all the revenue streams, which we would like to see do better in 2017 than 2016. So it is not just the isolated events.
Okay. Good. And 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 you either you make non exclusive deal or you make exclusive deals or whatever. So there's different opportunities for us. This is an exclusive deal when it comes to the English language flight globally on that specific tournament, but it is a nonexclusive deal when it comes to the local language flight. So that is something that we decided to get the tournament even stronger promoted.
It's a 1 year deal. And together with YouTube, build a super strong tournament and see how much marketing power that they can put behind such a tournament. So that is a trial that we're doing with YouTube right now. And then, 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. So 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 their tournament. So it's going to be very exciting to see.
Okay, great. And 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? Yes. I think as a general speaking, of course, we always, as you can see, interesting partnerships. I just named a few which we have concluded recently. So 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 e sport. And we have offices there already, and 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. So there is a collaboration already happening. We don't have a bigger 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.
So that is an opportunity like we have done now with Evendy Telefonica and so forth in some of the other territories. The whole idea is to get the spot out and widely spread as fast as possible.
Okay, great. And my last question is regarding this Vamtech Riot deal that was announced in December for Legal Legends. Is that impacting your revenues or position in any way?
No, it is not actually. So it's nothing to do with us. Of course, we're looking at the deals. But again, our products are so widely spread and so widely distributed. We have so many different tournaments.
So as I said, the deal with YouTube is 1 out of many tournaments that we are having. And the deal with and so forth, it is not affecting us.
Okay. Thank you.
We will now take our next question from Ramoth Imburg 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?
Yes. I think what we have said is we have an intention to invest up to 51% in games and the Czech deal is going to be closed, we believe, perhaps in 30, 45 days from now depending on regulatory approval. So that is something that time frame that we're looking at.
Okay. And what did you say about the InnoGames profitability? I didn't quite I heard they had EUR 130,000,000 in sales for 2016. And then what was the profitability you gave?
It was 20% EBITDA margin.
EBITDA. Yes, it was.
Yes. And do you anticipate that your EBIT will be sort of is it like 3%, 4% below, I mean, given that you report EBIT? That's just what I'm trying to figure to understand the difference between Yes,
something like that. Yes, something in that reason 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. And I think it's
fair to assume that 3%, 4% is
point over, yes. Yes. And
just on that matter, I mean, they haven't launched any new games recently yet. They are still in the pipeline. Is that right?
Yes. No, no, Yes. They have launched versus the mobile version of Forge of Empires, which is growing like a rocket. So it is they have new games in the pipeline, which will come out in Q2. And then, of course, they have launched a range of or enhanced a range of the mobile services on the existing games that they're having like Forge of Empires, Elvenar
and so
forth. So this is something which is coming in Q2, all the new games. And they are testing now soft launch and so forth, and they claim that it looks fairly okay actually.
And then a final question. I think when you released just a detail, I mean, 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. But as
you can
see, we had a quite significant cash gain on the transaction.
Yes. And just on coming back to the question on the international, was the Czech Republic the strongest growing business in the Q4 in that segment? Or was it broad based?
It was across actually across the different business. As I said, Bulgaria also had very strong growth. So we saw the Estonia, Latin 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 Madsen Lindemann for his concluding remarks.
Yes. Thank you for all your time today. We will announce Q1 results on April 21 and hold our AGM on May 9 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