Good morning, ladies and gentlemen. 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. If any participant has difficulties hearing the presentation, please press star followed by zero for operator assistance. I will now hand the call over to your host, MTG President and CEO, Mr. Jørgen Madsen Lindemann, who is joined on today's call by MTG CFO, Maria Redin. Please go ahead.
Thank you, operator. Good morning, everyone. It is a fact that video viewing has never been as high as it is today. It is also true that mobile video consumption is the fastest-growing segment. 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 can now see the benefits of those investments with the growth in Viaplay, MTGx, and the fact that we will soon launch our new online free TV platform, Viafree, to aggregate our online free TV services.
The strategic work that we did in 2012 and 2013 led to a number of step changes, including the investment in MTGx. Through 2014 and 2015, we transformed the way we buy content, changed the way we are organized, launched a major cost-saving program, and bought and sold assets to sharpen our focus on value creation and future potential. All of this to deliver on our strategic objective to be the leading digital entertainer in our markets. Today, we have market-leading positions in three 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 and 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 MTG Studios. Profits would have been up 20% without the SEK 80 million of currency headwinds. Our digital sales were up two and a half times following both organic growth and the acquisitions that we have made, as well as the ongoing investments we're 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 five times return on investment and have now completely withdrawn from traditional broadcasting in the CIS regions. 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 profits 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. Please remember that the businesses that we have divested contributed with a profit of SEK 43 million in Q3 last year. As usual, I will now briefly review the performance of each of our business areas before we take your questions. We begin with the Nordic entertainment operations. Sales were up 2% on an organic basis, driven by the continued growth of Viaplay. Operating income was up compared to last year, despite content investment, investments in our streaming services, the launch of new channels, and continued currency headwinds. Our cost transformation is progressing well and in line with our plan.
Our Nordic free 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 TV advertising market is estimated to have grown, while both the Danish and the Swedish market are estimated to have declined. Commercial TV VOD or linear view in our target group was down again in Q2 in each market. We increased our audience share in Norway for the seventh consecutive quarter. Our audience shares in Sweden and Denmark were down, that now leads to the impact of the Euro 16 football being shown on rival channels. Nordic free TV sales were up on constant exchange rates on the back of higher outputs and adjusted pricing to reflect the fantastic and unique new content offerings that we have launched.
Viaplay 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 and on our own third-party platforms. These have now returned to more normalized levels, and Viaplay's overall Q2 churn was actually lower than last year. This clearly demonstrates that consumers value both the content investment that we have made as well as the investment in an improved experience and better service levels with an enhanced user interface and 48-hour catch-up for live sports events. Viaplay users continue to grow, and we again broke the record for the number of started streams for a single day. We are about to launch more Viaplay original productions.
Next in line is the Swedish Detectives which will air in the fall, the recently launched teaser for this show was the most viewed Viaplay teaser ever. Moving forward, we do expect our Nordic 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 of Hockey across the Nordics, the prolonged Premier League rights in Sweden, there's a new right in Finland, the French league football, the Spanish, the Italian league that we did not have last year, the new Viaplay Fighting package, and the new Viasat Sport Premium channel.
This, combined with the ongoing currency headwinds, create a considerably cost 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 select games for Manchester United from the next month. The recent multi-year distribution agreement with Telenor clearly demonstrates the value of what we are doing. It will increase the reach for our free TV channels and also make our pay TV channels available to even more subscribers. As you may have seen this morning, we just announced a new multi-year deal with Com Hem in Sweden to make our free TV and pay TV channels available across their network, and this now includes our new Viasat Sport Premium, TV3 Sport HD, and eSportsTV channel, which is great news for customers.
Shifting the focus now from the Nordic to the international entertainment business, sales were down on a reported basis due to the divestments over the past year, up 6% on an organic basis. Bulgaria was again the star performer, with over 20% revenue growth and over 60% digital growth. Our operating profit was also up and actually up SEK 34 million 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 trade business.
Moving forward, we do expect continued like-for-like growth for the segment in 2016 and continued year-on-year margin expansion. Keep in mind that we will face increasingly challenging comparisons. Moving on to the MTG Studios, where sales were stable on an organic basis. Demand for scripted drama production and for brand entertainment continues to be very healthy, but this was offset by slightly lower demand from traditional free TV 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.
Finally to MTGx, where sales were up approximately 50% on a pro forma basis and fueled by approximately 60% total revenue growth. ESL hosted two major events in Q2, the ESL One Frankfurt, which is Europe's biggest Dota 2 event, and ESL One Manila, which is the first major Dota 2 event in Asia. These contributed to ESL's 108 million views and over 34 million hours of consumed content in Q2. ESL 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, Gfinity, and the launch of the first global 24/7 esports channel.
Q2 has been one of the most important quarters in the development of DreamHack following the launch of a new large-scale international tournament, it was the DreamHack Masters, and a very successful entry into the U.S. market through DreamHack Austin. DreamHack generated over 70 million views in Q2, and its three key events attracted 88,000 visitors. Zoomin.TV has continued its geographical expansion with an accelerated push into the Asian market, as well as focusing on the brand entertainment space. Zoomin.TV generated over 2 billion monthly views during Q2. Splay also continued to outperform our growth expectations, and its Under Hundringen format was a big success for Comviq, winning the prize of best online program idea of the year at Stockholm's Riagalan.
The operating loss of SEK 48 million was slightly higher than we anticipated at the beginning of the quarter, did reflect the continued expansion as well as M&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. The opportunities are very significant, 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. 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 two and a half times. The portfolio realignment has continued and the transformation savings are on track.
The proceeds 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 2016 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, 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 highlights 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, I will now hand the call over to Maria for her comments.
Thank you, Jørgen, good morning, everyone. Q2 sales were at a record high for the second quarter, up 5.7% with constant FX and 2.1% with organic growth. M&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 million of negative FX effects. This impact included both the transactional effect, but also the translation effect of the weakened Norwegian kroner. 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 SEK 250 million, which is in line what we previously have been communicated. The average USD rate that we expect to pass through the P&L in 2016 is approximately SEK 8.0.
The cost transformation is tracking as expected, we generated savings of over SEK 100 million in Q2. We continue to expect savings of approximately SEK 450 million for the full year. The cash cost for the program is expected at SEK 550 million, of which approximately SEK 330 million of payments have been made so far, including SEK 60 million 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 SEK 60 million, 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 payment schedule 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 billion in the quarter. We paid out our highest average cash dividend of SEK 767 million, we ended the quarter with a net debt of SEK 1.8 billion, corresponding to 1.2 times 12 months EBITDA. The way we consume content is changing fast. We identify these consumer trends early, which is why we take market-leading positions in the three most interesting digital video verticals: video on demand, esports, and multi-platform networks.
The fact that we're able to grow both sales and profits despite falling linear view, significant FX headwinds, and substantial investments in MTGx indicates 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, back to you, Jørgen.
Thank you, Maria. That concludes our commentary on the results. Over to you then, operator, to start the Q&A session, please.
Thank you, sir. Ladies and gentlemen, we are now ready to register questions. If you would like to ask a question, please press star one on your telephone keypad and you will enter a queue. Should you wish to cancel, please press star two. 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 missing yesterday and guiding to a lower subscriber growth in Q3. I'm just wondering if there's any color you can add on the Nordic markets and any read-across for Viaplay. 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? 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 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? The third question is on MTGx.
Looks like the losses continue to be slightly higher. I understand you're reinvesting. When do you think that segment could be profitable? Thank you.
Yeah. If I first look at the trends, as we also said in the report, that we are growing the Viaplay subscriber base, and we see good growth in the Nordics when it comes to OTT. 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 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. As always, we do not give away the exact numbers.
I can just tell you that we are growing the base. When it comes to the cooperation that we have now prolonged and enhanced with Telenor and Com Hem, it gives us broader distribution opportunities for our product, and it also gives us opportunities for new products. As you know, in Sweden, we have launched the TV3 Sport channel, and that, of course, is a new product which will then go into Com Hem and Telenor products in packages in Sweden. That also goes, of course, for the new premium sports channel that we are having, the esports channels, and so forth. We have actually enhanced our cooperation with these two very important distributors in order for us together to go out and get many more customers on our products.
When it comes to the MTGx losses and when we can be profitable, I think that is what we have said, at least at the last call 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 advertisers coming in. That's why we can grow revenue at the pace that we are doing. It is for us to make sure at this stage that we will continue to invest and to grow the product. Then, of course, over time, these businesses, of course, will make profit to us, and that is up to us to decide when we feel that is the time.
When it comes to the pricing impact of the deals that we have made with the distributors, 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 the distributors have contributed as well with a so-called inter ticket to get some of the content. That we have successfully discussed with them because we see very strong traction, of course, of the content that we are having. 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 Danish League is to 2021, and so forth. I hope that answers your question.
May I just follow up with my first question on the OTT landscape and the OTT market? Are you seeing an actual growth for all players, or are you seeing now you're basically just taking share from the others?
Yeah. None of us, as you know, is revealing our figures, I can't give you that. I think important for us is that we look at our product, as I said to you, we are growing Viaplay and also as we also said in the call, is that the overall churn of Viaplay is down quarter-over-quarter.
Okay. Thank you.
Thank you. We'll now move on to our next question from Adrien de Saint Hilaire from Morgan Stanley. Please go ahead. Adrien, call if your line is open. You may go ahead.
Sorry, I was on mute. Good morning, everyone, and I hope you can hear me well. A couple of questions, please. The first one, Jørgen, you talked about profits being down in Q3 because the investments will carry on in Q4. Any reasons why profits would not be down in Q4 as well? That would be my first question. Second question is, I'm just wondering if you have heard or seen any signs of weakness on the advertising market following the Brexit vote. 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?
Yeah. 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 forecasting the market to be down at least 3%. The same goes for the Danish market, which was also a bit soft here in the second quarter. The Norwegian market, on the other hand, did fairly okay, and I believe that it's been up around 2%. That is not something that we are seeing. We also continue to see strong growth, of course, in the AVOD. I think the normal trends we have seen for some time is applying besides the Danish market was a bit softer than we expected.
When it comes to the OTT and content, yes, we are, of course, cooperating with a lot of different companies when it comes to OTT, that is in many different shapes and forms. We could buy rights with other OTT players, we can also finance our content, our investments in drama or other stuff with other OTT players. That is already taking place right now, where we actually also in some instances have pre-sold already some of the drama that we are producing in our production companies or which we are showing on Viaplay. That collaboration is taking place, of course, where it makes sense. I think that is very important and quite important for us as well. On the Q3 cost and losses.
Yeah. As we said, what you should expect going forward in Q3, you should expect the cost going up quarter on quarter from Q2 to Q3 because we are adding some A specific rights in Q3. Also the new Premier League contract kicks in along with also Premier League in Finland. The starting point is obvious that we had last year SEK 43 million of profit from our Russian CTC Media operations that we have divested, that is the base. We keep the guidance for the full year, which means that we aim for profit growth for the full year, 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 profit 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 Laséen from Carnegie. Please go ahead.
Hi. You said today that you want to divest or have 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 African businesses. That is pending regulatory approval. You should expect one of cost of roughly SEK 40 million-SEK 50 million as point of completion of transaction.
Okay. Can you maybe repeat? SEK 50 million in one-off, is that correct?
Yes. Between SEK 40 million-SEK 50 million as a one-off cost at point of divestment.
Okay. It would be great if you can maybe clarify the Q3 development in terms of the content cost side. There are a lot of moving parts and was it correct that you expect unchanged cost quarter-on-quarter in Q3?
No. We increase the cost in Q3 because you have two rights that are of one-off character. You have Olympics coming in now in August. You also have the World Cup of Hockey across the Nordics. Those two are one-offs. You also have the new Premier League contract coming in, which is a new agreement for Sweden and Norway. You also have it in Finland, which you did not have last year. On top of that, you have the Serie A league and the French league. That you did not have last year either. You should expect an increase both quarter-on-quarter and year-on-year.
Okay. Great. Thanks. A couple of smaller questions here. When it comes to studios and results, improvement this quarter was quite significant. You mentioned that it's thanks to DRG partly. Is that sustainable, that improvement that you have reported now in Q2?
Yeah, 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 second quarter. It was very strong sales from DRG. It was very strong drama production as well. It was a fine quarter, and some of the products that we did have was also very high-margin products. Going forward, we would see improved profitability, of course, from the production business as such.
Okay, perfect. The underlying sales growth for Greenlight in total, what was that in the quarter? If you have sort of a year-on-year apples-to-apples comparison. Thanks.
The pro forma growth rate was 60% for the esports segment, and overall for the MTGx, 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. My first question is on MTGx profits 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?
If you look at the underlying, they actually improved or reduced their losses quarter on quarter. We had M&A costs relating to two transactions, the Engage Sports Media and the [Koda] investment. That comes as a sort of one-off, but we didn't disclose that separately.
Are you able to quantify roughly what the underlying EBIT was for MTGx?
I mean, if the M&A cost would have been material enough, then we would have disclosed it. It's still material enough to talk around it when you ask. We don't give the specific numbers.
Do you have any outlook comments for MTGx when it comes to losses in the second half of the year?
The outlook remains, the losses will improve. We saw the underlying improve quarter-on-quarter. That should be lower in the second half of the year than what we saw the first half of the year. That remains.
Okay, great. My second question is on this margin pickup in international entertainment business. I guess you're still enjoying high incremental margins there. Going forward, would you expect content costs pressure here as well soon? Do you see this positive trend continuing?
I think that we do expect it to continue, actually, because what we have said all the time is that we have spent a lot of money in the schedule already. Now we are luckily seeing that it is actually materializing now since you can see that the ratings are increasing in the areas. We do expect that we will continue to have a very strong performance also profit-wise in the business.
Okay, great. My final question is on this full-year guidance. Now it's not that far away from 2017. 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, we're comfortable on the cost savings that we realize so far. We're very happy with the program and how we proceed with it.
Okay, thanks. Fair enough. Thank you.
Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question today, please press star one on your telephone keypad. We will now move on to our next question from Sami Sarkamies from Nordea. Please go ahead.
Hi. I have two questions. Firstly, on third-party customer base that dropped quite substantially now in Q2. Do the price increases, do you think there will be more churn like this in the coming quarters, or was this it? 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.
Yeah. I think when you look at the third-party network, I think their subscriber base was down 13,000 quarter-on-quarter. 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. If you divide the 13,000 on the countries there, waiting for countries, it is actually quite marginal, to be fair. If you look at the overall premium subscriber base, we are down 11,000 from Q2 2015 to Q2 2016. 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.
The short-term impact that we see, obviously not everything is crystal clear on how it will play out is, we see the pound dropping versus all the key currencies, and obviously we have a big hub in the U.K. However, we do hedge also the pound versus the SEK, so the impact will be very marginal in the short-term. We've seen the U.S. dollar going up versus the SEK, which is similar there. We have the majority of the rolling 60-month hedged. It will then come in the sort of longer-term future if the current rate exists as it is today. 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 Engberg 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&L or is it, these entry tickets you talk about, is that something that reduce your cost or increase your revenues, or does it come as somewhere else in the cash flow only, or how should we think about that?
Yeah, I think the deals that we have made with them is of course relating to our products to get the broader presence. We have new products which we can sell. As I said, the premium channel, the Viasat Sport Premium channel and also the esports channel, also TV3 Sport, that would help, hopefully, our selling and also new advertising opportunities there as well on the TV3 Sport channel. The Telenor deal is a broader deal as well, where we are getting more content as well to our digital platforms. We will be able to start to broadcast eventually the Olympics in Norway, whatever. It is giving us 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 the price inflation on the content was fairly high. Therefore we didn't want the consumers to take more cost for that. Therefore we agreed to share that.
How does that sharing, how does that actually impact your financial statements?
Going forward, of course, since they're taking some of the cost, of course it helps when we're looking at the rights, 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 product, for our partners. That has been, as we said all along, been part of the planning.
That means they take some of the costs for the Premier League, or how does it actually work?
You could say they take some of the cost for having some content. That is the discussion that we're having with them, which we announced in Sweden that we wanted to do. That is, again, it has just to reiterate, that has been part of the plan all the time.
Yeah. I'm just trying to figure out what's going to happen with your P&L and balance sheet.
You shouldn't expect it to impact our balance sheet to any major deal because this is a service, it's a distribution agreement that we make with these players to make sure our products are as broadly available as possible. Of course they take a share, but they've always taken a share because we always have agreements with them. 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?
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.
Just some nitty-gritty stuff. You dispose businesses now in Africa. Besides the one-off costs, which you explained, can you give us some sort of magnitude on sales and losses for those businesses on a full year basis?
If you look at last year, you roughly had SEK 20 million of sales and around SEK 50 million of losses.
15?
50.
50?
SEK 50. Yes.
Okay. 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. What you saw in Q1 was that we did some upfront payments on both new and prolonged key content rights amongst other sports. You had a higher degree amortization of those content rights in Q2. 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 Jørgen Madsen Lindemann for his concluding remarks.
Thank you for your time today. We will announce our Q3 results on October the 20th and hope to see as many as possible of you there. Please do call with any questions. We look forward to keeping you up to date with our further progress. Thank you for your continued interest in MTG. I wish you all a great summer. Thank you.
That concludes today's conference call. Thank you for your participation.