Good morning, ladies and gentlemen, and thank you for holding. Welcome to MTG's Q2 Earnings Call. This call is being recorded. 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, MTG President and CEO, Mr. Jorn Mattson Lindeman, who is joined on today's call by MTG's CFO, Mario Reddin. Please go ahead.
Thank you, operator, and good morning, everyone. It is a fact that video journey has never been as high as it is today. It is also true that mobile video consumption is the fastest growing segment. And this is exactly why several years ago, we took the bold decision to lead the way and disrupt ourselves by launching video on demand services to capitalize on the consumer trends that we were seeing, not just on a local, but also on a global scale through esports and digital first content creation. We cannot see the benefits of those investments with the growth in bioplay, NGS and the fact that we will soon launch our new online free TV platform, biopree, to aggregate our online free TV services.
The strategic work that we did in 2012 '13 led to a number of step changes, including the investment in EBITDAX. And through 2014 'fifteen, we transformed the way we buy content, changed the way we are organized, launched and made a cost saving program and bought and sold assets to sharpen our focus on value creation and future potential. All of this will deliver on our strategic objective to be the leading digital entertainer in our markets. Today, we have market leading positions in 3 of the most interesting digital video verticals: video on demand, esports and multi platform networks. Our products are more relevant and broadly available than ever before due to the significant content in technology investments that we have made in both our traditional and digital operations.
This gives us confidence when it comes to the long term future of our products, our businesses and of MTG. Turning to Q2, we delivered record sales and higher profits with profitable growth for the Nordic and international entertainment businesses and record profits for NTG Studios. Profits would have been up 20% without the SEK 80,000,000 of currency headwinds. And our digital sales were up 2.5x following both organic growth and the acquisitions that we have made as well as the ongoing investments we are making in the expansion of these exciting businesses. Our strategic transformation has continued during Q2 with a number of key initiatives.
We have completed the sale of CTC Media for a very healthy 5x return on investment and have now completely withdrawn from traditional broadcasting in the CIS region. We have also signed an agreement to sell our free TV and production businesses in Ghana and Tanzania. Looking forward, our outlook is unchanged. We aim to accelerate our sales growth and increase our operating profit in 2016. Q3 sales are expected to be up again, but profits will be down as we see the impact of the new and renewed sports rights as well as the ongoing adverse currency effects.
And please remember that the businesses that we have divested contributed with a profit of $43,000,000 in Q3 last year. As usual, I will now briefly review the performance of each of our businesses business areas before we take your question. So we begin with the North Entertainment Operations. Sales were up 2% on an organic basis, driven by the continued growth of buyer play. Operating income was up compared to last year despite constant investment, investments in our streaming services, the launch of new channels and continued currency headwinds.
Our car transformation is progressing well and in line with our plan. Our normal pre TV and radio sales were stable at constant exchange rates with higher sales in Norway but lower sales in Sweden and Denmark. Our AVOD sales were up 42%. The Norwegian tea advertising market is estimated to have grown, while both the Danish and the Swedish market are estimated to have declined. Commercial TV parts, or linear TV, in our Type Group was down again in Q2 in each market.
We increased our audience share in Norway for the 7th consecutive quarter. Our audience share in Sweden and Denmark were down, and that not leads to the to the impact of the Euro 16 football being shown on rival channels. Nordic Pay TV sales were up on constant exchange rates on the back of higher ARPUs and adjusted pricing to reflect the fantastic and unique new content offerings that we have launched. ViyaPlay delivered another healthy quarter, driven by both volume and value. As anticipated, given the price adjustments, we did see initially higher churn levels in Q2 for both Viasat and VIAplay on our own third party platforms.
But these have now returned to more normalized levels, and VIABLAY's overall Q2 churn was actually lower than last year. This clearly demonstrates that consumers value both the content investments that we have made as well as investment in an improved experience and better service levels with an enhanced user interface and 48 hour catch up for live sports events. Wireplay users continue to grow, and we again broke the record for the number started streams for a single day. We are about to launch more Bioplay original productions. Next in line is the Swedish detectives, which will air in the fall, and the recently launched teaser for this show was the most viewed bioplait teaser ever.
Moving forward, we do expect our North Entertainment sales to continue to grow on the back of the investments that we have made. We will now have the Summer Olympics in Sweden, the World Cup high soccer across the Nordic, the prolonged Premier League rights in Sweden and as a new right in Finland, the French League Football, the Spanish, the Italian League that we did not have last year, the new VIA Play fighting package and the new VIAZAT premium sports channel. This, combined with the ongoing currency headwinds, create a considerable step up in Q3 and will mean that Q3 profits will be down, but these investments will serve us well moving forward, not least now that ViaSat and ViaPlay will be the home of slot and games for Manchester United from the next month. The recent multiyear distribution agreement with Telenor clearly demonstrate the value of what we are doing. It would increase the reach of our pay TV channels and also make our pay TV channels available to even more subscribers.
And as you may have seen this morning, we just a new multi year deal with Com Hem in Sweden to make our free TV and pay TV channels available across their networks, and this now includes our new Firestore Premium, TV3 Sport HD and eSport TV channel, which is great news for customers. Shifting the focus now from the Nordy to the Internet entertainment business. Sales were down on a reported basis due to the divestments over the past year but up 6% on an organic basis. Bulgaria was again the start performer with over 20% revenue growth and over 60% digital growth. Our operating profit was also up and actually up $34,000,000 on an organic basis.
International free TV and radio sales were up on constant exchange rates with higher sales in almost all countries and digital AVOD sales up 53%. The Bulgarian and Czech TV advertising markets are estimated to have grown in Q2, while the Baltic market is estimated to have been down slightly. The Bulgarian, Czech and Baltic audience shares were up in all markets. Sales in our international pay TV business were also up on an organic basis, following continued growth in the Trace business. Moving forward, we do expect continued like for like growth for the segment in 2016 and continued year on year margin expansion.
But keep in mind that we will face increasingly challenging comparisons. Moving on then to the NGT studios, where sales were stable on an organic basis, demand for scripted brand production and for brand entertainment continues to be very healthy, but this was offset by slightly lower demand from traditional PCV given the European Football Championship in Q2. MTG Studios' great storytelling continues to attract attention and awards, and we have also further improved production margins. I'm therefore pleased to see that the EBIT improved substantially during the quarter, and we had record Q2 profits for the business. Moving forward, we expect further profitability improvement in 2016 but with more moderate year on year changes than in Q2.
And then finally, to NTG X, where sales were up approximately 50% on a pro form a basis and fueled by approximately 60% total revenue growth. ESL hosted 2 major events in Q2, the ESL 1 Frankfurt, which is Europe's biggest Dota 2 event and ESL 1 Manila, which is the 1st major TOSA2 event in Asia. These contributed to ESL's 108,000,000 views and over 34,000,000 hours of consumed content in Q2. We still launched a dynamic new rating system at the end of Q1 that enabled players to sort themselves by grade, and the subscriber base was up more than 20% compared to Q1. The geographical and product expansion also continued with the acquisition of leading U.
K. Esports agency, Koda, and the launch of the 1st global 20 fourseven esports channel. Futur has been one of the most important quarters of the development of DreamHack following the launch of a new large skate national tournament. It was the DreamHack Masters and the very successful entry into the U. S.
Market through DreamHack Austin. DreamHack generated over 70,000,000 views in Q2, and its 3 key events attracted 88,000 visitors. Zummin has continued its global expansion with an accelerated push into the Asian market as well as focusing on the brand entertainment space, and Xumain generated over 2,000,000,000 monthly views during Q2. Spley also continued to outperform our growth expectations, and its underhundringen format was a big success for company, winning the prize of Best Online Program Idea of the Year at Stockholm's RIA Gala. The operating loss of $48,000,000 was slightly higher than we anticipated at the beginning of the quarter, but did reflect the continued expansion as well as M and A costs related to the purchase of Koda and a stake in Engage Sports Media U.
K. Moving forward, we do expect continued high revenue growth. Opportunities are very significant, and we will therefore continue to invest into these businesses. However, we do expect that the second half losses will be at a lower level than first half. So in summary, for the group as a whole, we again grown our sales to record levels.
We have shown profitable growth in both our Nordic and international entertainment businesses, delivered record profits for our studio business, and our digital sales were up 2.5x. The portfolio realignment has continued, and the transformation savings are on track. The proceeds from this year from this has been partly reinvested into the business as planned as well as into the paying out of our highest ever cash dividend in the quarter. Our aim for 20 16 remains to accelerate our sales growth and grow our full year profits. As you can probably tell, we are very excited about the potential of the product offering that we now have for customers.
It is simply the strongest ever when it comes to sports, and we also have a pipeline of original productions that will be rolled out in the coming months. The new long term agreements with Telenor and Com Hem make our content available to their customers, just highlight how attractive our offering is. This is what we live and breathe for in our daily work, the ability to tell great stories that are relevant and attractive for our customers. That concludes my comments on the results, and I will now hand the call over to Maria for her comments.
Thank you, Jorgen, and good morning, everyone. Q2 sales were at a record high for the 2nd quarter, up 5.7% at constant FX and 2.1% at organic rates. M and A provided a net positive 3.5% contribution, while FX had a negative 1.5% impact, primarily due to the depreciation of the Norwegian kroner. Operating income was up compared to last year despite SEK 80,000,000 negative FX effect. This impact included both the transactional effect, but also the translation effect of the weaker Norwegian krona.
The majority of this impacted the Nordic Entertainment segment. Looking at 2016, based on current spot rates and net of forward currency hedges, we currently expect a negative transaction impact from the currency of approximately DKK 250,000,000 which is in line with what we previously have been communicated. The average US dollar rate that we expect to pass through the P and L in 2016 is approximately SEK 8.0. The cost transformation is tracking as expected, and we generated savings of over SEK 100,000,000 in Q2. We continue to expect savings of approximately $450,000,000 for the full year.
The cash cost for the program is expected at $550,000,000 of which approximately $330,000,000 of payments have been made thus far including $60,000,000 in Q2. The majority of the rest is expected to come in 2016. As before, please keep in mind that we will reinvest the majority of these savings into the ongoing transformation of the business. Cash flow from operations was lower than last year due to the restructuring payments of approximately $60,000,000 which means that the underlying cash flow was broadly flat. Changes in working capital were positive and primarily explained by the normal seasonality pattern and payments scheduled for sports rights where prepayments were made in Q1 and higher overall content amortization.
Additional payments are due in July and will impact working capital in Q3. We have now completed the sale of our 38% stake in CTC Media, which resulted in a cash payment of SEK 1,000,000,000 in the quarter. We paid out our highest average cash dividend of SEK 767,000,000 and we ended the quarter with a net debt of SEK 1,800,000,000 corresponding to 1.2 times 12 months EBITDA. The way we consume condos is changing fast. We identify these consumer trends early, which is why we take market leading positions in the 3 most interesting digital video verticals, video on demand, esports and multiplatform networks.
The fact that we're able to grow both sales and profits despite falling linear view, significant FX headwinds and substantial investments in MPGX indicate we're doing things right, that our transformation is working and that we are on track to accelerate our sales growth and increase our operating profits in 2016. That is it for my comments. So back to you, Jorgen.
Thank you, Maria. And that concludes our commentary on the results. So over to you then, operator, to start the Q and A session, please.
Thank you, sir. Ladies and gentlemen, we are now ready to register The first question comes from Lisa Yang from Goldman Sachs. Please go ahead.
Hi, good morning. I have a first question on the OTT trends you're seeing in the Nordics. Obviously, we saw Netflix Nordic markets and any read across for Via Play. I mean, if you can talk about the dynamics you're seeing in the market in terms of maybe saturation of some of the basic content and are you seeing people more willing to move up to more premium packages? And so any color on that would be very helpful.
The second question is on your new distribution agreements you signed with Telenor and Com Hem. Just wondering what's the kind of what's really changing in the pricing model? And what kind of impact would you expect maybe in the second half or more meaningfully maybe in 2017? And the third question is on MTGX. Looks like the loss is continued to be slightly higher.
I understand you're reinvesting. When do you think that segment could be profitable?
Yes. If I first look at the trends, I will as we also said in the reports that we are growing the wire base subscriber base, and we see good growth in the Nordics when it comes to OTT. And that is also when you look at our products, of course, also with Olympics coming up and so forth, it is interesting, of course, what opportunity that, that will bring us. Also, with the more original products that we are now launching, the new drama series, and as I said as well, we have a lot in the pipeline. But as always, we do not give away the exact numbers.
So I can just tell you that we are growing the pace. When it comes to the cooperation that we have now prolonged and enhanced with Silanol and Com Hem, it gives us a broader distribution opportunities for our product and has also given us opportunities for new products. As you know, in Sweden, we have launched the Tier 3 Sport channel, and that, of course, is a new product, which will then go into Com Hem and Telenor products in, what's it called, packages in Sweden. And that also goes, of course, for the new premium sports channel that we're having, the e sports channel and so forth. So we have actually enhanced our cooperation with these 2 very important distributors in order for us together to go out and get many more customers on our products.
When it comes to the MGG, ex losses and where we can be profitable, I think that is what we have said at least at the last quarter as well. For us, it is about grabbing land. For us, it is about making sure that we continue to grow these businesses because we do see more and more customers, as you can see as well, using these products. We can see more appetizers coming in. That's why we can grow revenue at the pace that we are doing.
So it is for us to make sure at this stage that we will continue to invest and to grow the products. And then, of course, over time, these businesses, of course, will make give will make profit to us. And that is up to us to decide when we feel that, that is the time. When it comes to the pricing impact of the deals that we have made with the distributors, yes, you will see that ongoing. That depends on the product that we have with them and, of course, of the success on the product.
You will see as a new thing that is that the distributors, they have contributed as well with so called inter ticket to get some of the content so that we have successfully discussed with them because we see very strong traction, of course, of the content that we're having. But now the content that we do have on board, we have secured now for long term, meaning that the Premier League is now to 2019, the Tanis League is 2021 and so forth and so forth. I hope that answers your questions.
May I just follow-up with my first question on the OTT landscape and the OTT market? I mean, are you seeing, I see, growth for all players? Or are you seeing now you're basically just taking share from the others?
Yes. Not a lot, as you know, is revealing our figures. So I can't give you that. I think important for us is that we look at our product. And as I said to you, we are growing VIAFLE and also as you can as we also said in the call is that the overall churn of Fireplace is down quarter
Thank you. We'll now move on to our next question from Adrian de Santanderi from Morgan Stanley. Please go ahead.
Sorry, I was on mute. So good morning, everyone, and I hope you can hear me well. So a couple of questions, please. The first one, Jorgen, you talked about profits being down in Q3 because the investments will carry on in Q4. I mean, any reasons why profits would not be down in Q4 as well?
That would be my first question. 2nd question is, I'm just wondering if you have heard or seen any signs of weakness on the advertising markets following the Brexit vote. And lastly, you need to invest a lot in content. Everybody needs to invest a lot in content and OTT. Do you feel or do you have any projects to do a tie up or more collaboration with other European players or foreign players?
Yes. When it comes to the advertising market and Brexit, I don't think that we can blame Brexit for advertising markets in Sweden being down because I believe that or I am at least forecast the market to be down at least 3%. And the same goes for the Danish market, which was also a bit soft here in the Q2. The Norwegian market then, on the other hand, fairly okay, and we believe that has been up. I'm believe that it's been up around 2%.
So that is not something that we are seeing. We also continue to strong growth, of course, in the advertising, video and demand. So I think the normal trends is the trends we have seen for some time is applied. Besides the Danish market, it was a bit softer than we expected. When it comes to OTT and content, yes, we are, of course, cooperating with a lot of different companies when it comes to OTT, and that is in many different shapes and forms.
We could buy rights with other OTT players, and we can also finance our content, our investments in drama or other stuff with other OTT players. So that is already taking place right now where we actually also, in some instances, has presold already some of the drama that we are producing in our production companies or which we are showing on Bayerplay. So that collaboration is taking place, of course, where it makes sense. I think that is a very, very point and quite important for us as well. On the Q3 costs and losses.
Yes. I mean, as we said, what you should expect going forward in Q3, you should you should expect the cost going up quarter on quarter from Q2 to Q3 because we're adding some A specific rights in Q3, but also the new Premier League contract kicks in along with also Premier League in Finland. So the starting stages obviously we had last year SEK 43,000,000 dollars of profit from our Russian and MiniPay operations that we have divested. So that is the base. So then we keep the guidance for the full year, which means that we aim for profit growth for the full year.
So that remains intact.
Okay. Just Maria, perhaps following up on your full year guidance, given that H1 was up about 6%, 7% at the EBIT level, can you refine a bit your profit growth guidance?
No. What we said is that full year, we will drive profit growth, which then means that in Q4, we will drive a profitable growth for Q4 in specific, but you should not expect that for Q3.
Thank you very much.
Thank you. We will move on to our next question from Mikael Racine from Carnegie. Please go ahead.
Hi. You said today that you want to divest or has divested actually Ghana and Tanzania. Can you say something more about this, when this will take place and the financial impact from it?
We have signed an agreement to sell our Abkin businesses and that is pending regulatory approval. You should expect one off cost of roughly SEK 40,000,000 to SEK 50,000,000 at point of completion of transaction. Okay. Can you maybe repeat transaction.
Okay. Can you maybe repeat the SEK 50,000,000 in one off? Is that correct?
Yes, between SEK 40,000,000 to SEK 50,000,000 as a one off
cost at point of divestment. Okay.
And it would be great if you can maybe clarify the Q3 development in terms of, I mean, the content cost side. There are a lot of moving parts. And I was correct that you expect unchanged cost quarter on quarter in Q3?
We increased an increase of the cost in Q3 because you have 2 rides that are sort of one off character. You have Olympics coming in now in August and then you also have the World Cup in hockey across the Nordics. So those 2 are one offs. And then you also have the new Premier League contract coming in, which is new agreements for Sweden and Norway. And then you also have it in Finland, which you did not have last year.
And on top of that, you have Stearjarlalik and French league. So that you did not have last year either. So you should expect an increase both quarter on quarter and year on year.
Okay, great. And a couple of smaller questions here. When it comes to Studios and results improvement this quarter was quite significant. And you mentioned that it's thanks to DRG partly. Is that sustainable, that improvement that you have reported now in Q2?
Yes. I think what we said is, of course, that the result is great, and we are happy for that, but also that we do expect, of course, the performance being strong going forward, but not at the levels that we have seen in the Q2. It was very strong sales from DRG. It was very strong production as well. So it was a fine quarter, and some of the products that we did had was also very high margin products.
But going forward, would see improved profitability, of course, from the production business as such.
Okay. Perfect. And the underlying sales growth for DreamHack in total, what was that in the quarter, if you have sort of a year on year apples apples comparison? Thanks.
Yes. The pro form a growth rate was 60% for the Esports segment and overall for the MPJX it was 50%.
Thanks.
Thank you. We'll now move on to our next question from Martin Arnell from DNB Markets. Please go ahead.
Yes, hello. So I have my first question is on MTG X profits and or losses in the quarter. You actually guided for slightly lower loss in this quarter and it was fairly the same as in Q1. Can you just elaborate a little bit? Are there any one offs in the numbers?
Or
Yes. I mean, you had if you look at the underlying, they actually improved or reduced their losses quarter on quarter, but then we had M and A costs relating to transactions in the Engaged Media and the Kuga investments. So that comes as a sort of one off but we didn't disclose that separately.
Okay. Are you able to quantify roughly what the underlying EBIT was for MTG X?
I mean if the M and A cost would have been material enough then we would have disclosed it, but it's still material enough to talk around it when you ask. So we don't give the specific numbers.
Okay. And you have any do you have any outlook comments for MTG X when it comes to losses in the second half of the year?
I mean, we the outlook remains, I mean, the losses will improve and we saw the underlying improved quarter on quarter and that should be lower in second half of the year than what we saw the first half of the year. So that remains.
Okay, great. And then my second question is on this margin pickup in international entertainment business. I guess you're still enjoying high incremental margins there. Or I mean going forward, would you expect content costs pressure here as well soon? Or do you see this positive trend continuing?
No. I think that we do expect it to continue actually because what we have said all the time is we have spent a lot of money in the schedule already. And now we are luckily seeing that it is actually materializing now since you can see that the ratings are increasing in the areas. So we do expect that we will continue to have a very strong performance also profit wise in the business.
Okay. Great. And then my final question is on this full year guidance. I mean now we're actually it's not that far away from 2017. And I mean, given that you see better cost savings coming through next year.
Is that enough for profit growth next year? Or how do you look at this?
We haven't given any guidance for 2017, but we're comfortable on the cost savings that we realized so far. We're very happy with the program and how we proceed with it.
Okay. Thanks, Fair enough. Thank you.
Thank you. We will now move on to our next question from Sammis Sarkhanis from Nordea.
I have two questions. Firstly, on 3rd party customer base that dropped quite substantially now in Q2 due to price increases. Do you think there will be more churn like this in the coming quarters? Or was this it? And then second question regarding Brexit.
We've seen that the exchange rates have moved quite a bit. Do you anticipate any other impacts from Brexit, say, in the near term, not talking about macro things, but for example, related to your contracts or something like that? Thanks.
Yes. I think when you look at the 3rd party network, I think their subscriber base was down 13,000 quarter on quarter. And it was the end of the season when it comes to sport. And of course, the price increases probably had something to say there as well. But if you divide the 13,000 on the countries that are waiting for countries, it is actually quite marginal, to be fair.
If you look at the overall subscriber, previous subscriber base, we are down 11,000 from Q2 2015 to When it comes to Brexit, I understood your question as Brexit and the impact on our businesses as such. Is that correct, sorry?
Yes, that is correct.
I mean the short term impact that we see, obviously, not everything is crystal clear on how it will play out is I mean we see the pound dropping versus all the key currencies. And obviously we have a big hub in the UK. However, we do hedge over the pound versus the SEK, so the impact will be very marginal in the short term. We've seen the dollar going up versus the SEK, which is similar there. We have the material of the rolling 60 month hedged.
So it will then come in the sort of longer term future if the current rates exist as it is today. But the short term impact is mainly on the currency side.
Okay, thanks.
Thank you. We'll now move on to our next question from Rasmus Engeberg from Handelsbanken. Please go ahead.
Yes. Hi, good morning. I was a little bit curious about your deals with Com Hem and Telenor. Are they going to impact your P and L? Or is it I mean, this entry ticket you talk about, is that something that reduce your costs or increase your revenues?
Or does it come as a somewhere else in the cash flow only? Or how should we think about that?
Yes. I think the deals that we have made with them is, of course, relating to our products to get broader presence. So we have new products which we can sell. As I said, the premium channel, the Viasa Sport premium channel, also the esports channel, also TV3 Sport, that would help, hopefully, our selling and also new G3 sports channel. Then the Filanor deal is a broader deal as well where we are getting more content as well to our DTH platforms.
So we will be able to as such to broadcast eventually the Olympics in Norway, whatever. So it is giving us more and more content. And hopefully, that also should have a positive impact when it comes to our products. That is why we are happy with the deals that we have made with them. This entry ticket, that was a discussion we had around the consumers.
We thought that we the price inflation on the content was very high, and therefore, we didn't want the consumers to take more cost for that. So therefore, we agreed to share that.
And how does that sharing, how does that actually impact your financial statements?
Yes. Going forward, of course, it's since they are taking some of the costs, of course, it helps when we are looking at the rights. But that has been in the plan all the time when we acquired these rights. The whole idea was, of course, to make sure that we could secure the rights for our products, for our partners. So that has been, as we said all along, been part of the planning.
So that means they take some of the costs for the Premier League? Or how does it actually work?
Yes. You can say they take some of the costs for having some content. That is the discussion that we're having with them, which we announced in Sweden that we wanted to do. But that is again, it has just a reason, right? That has been part of the plan all the time.
Yes, yes. I'm just trying to figure out what's going to happen with your P and L and balance sheet.
I mean, you shouldn't expect to impact our balance sheet to any major deal because this is the service. It's a distribution agreement that we make with these players to make sure our products are as broadly available as possible. And then, of course, they take a share, but they have always been a share because we always have agreements
with them. So that is nothing new. It is just
a new agreement, which we're very happy with.
Do you expect to sign with the other major distributors as well?
Yes. That depends if we can agree with them. It goes without saying that we have now very strong contracts around the Nordics. And of course, we constantly see contracts coming in with different parties around the continent.
And just some nitty gritty stuff. You dispose businesses now in Africa. Are these on besides the one off costs which you explained, can you give us some sort of magnitude on sales and losses for those business on a sort of full year basis?
If you look at last year, you roughly had $20,000,000 of sales and around $50,000,000 of losses.
$15,000,000 $15,000,000 $50,000,000 $50,000,000 Yes. Okay.
And then finally, you had some comments about working capital. I didn't quite follow that. Can you explain again what's going to happen with the working capital? I thought it looked very strong in this quarter and very volatile for the first half of the year. Yes.
I mean what you saw in Q1 was that we did some upfront payments on both new and long key content rights, non standard sports. And then you had a higher degree of amortization of those content rights in second half sorry, Q2. And you should sort of see a similar pattern in the second half of the year.
Okay. Thank you.
Thank you. That concludes the question and answer session. I will now hand the call back to Madsen Lindemann for his concluding remarks.
Thank you for your time today. We will announce our Q3 results on October 20 and hope to see as many as possible of you there. Please do call with any questions, and we look forward to keeping you up to date with our further progress. Thank you for your continued interest in NTT, and I wish you all a great summer. Thank you.
That concludes today's conference call. Thank you for your participation.