Our aim is to be the leading digital video entertainment provider in each of our markets. We are shaping the future of entertainment by connecting our audiences with the content that they love through multiple screens in the home and on the move, scheduled and on demand. These online and offline products are funded by advertising and subscriptions. We run TV and Radio channels, networks and platforms across the Nordic region and internationally.
The majority of our programming content is acquired but we also own nice entertainment, which is the leading content production company in the Nordic region with global distribution capability. MTG is also the world's number one eSports company (through Turtle Entertainment and DreamHack) and Europe's largest multi-platform social entertainment network (through Zoomin and Splay).
2015 was a year of major change for MTG, as we accelerated the pace of our strategic transformation from a traditional broadcaster into a digital video entertainer company. We have a clear ambition to be the number one digital video entertainer in each of our markets.
As a result of the actions that we have taken, we ended the year stronger and more relevant, with better products, more customers and record sales. Profits were stable for the year and would have been up sharply were it not for the significant currency exchange rate headwinds that we faced. We have low borrowing levels and have proposed a higher annual dividend.
We have changed the way we work, transformed the business and identified SEK 600 million of savings, the majority of which will flow through in 2016 to fund our ongoing investments in content and technology, and to and help offset the ongoing currency headwinds.
Portfolio realignment is a core part of our strategy because we will allocate capital to those businesses and products that offer the greatest potential and returns. We have therefore also exited a number of markets, in line with the shift in our strategic focus away from the geographical expansion of our broadcasting operations, towards establishing leadership in complementary digital entertainment verticals that have global potential. And it is here that we have made the major leap forward.
Millennial video viewing is higher than ever but is primarily moving to social media platforms or multi-channel networks (typically on YouTube). This is why we invested in Splay, Sweden’s largest MCN, back in 2014 and then last year bought 51% of Zoomin.TV, Europe’s largest MCN that attracts more than 2.2 billion monthly views.
Sport has always been a key driver of our business, and competitive gaming is one of the largest online video categories. This is why we bought 74% of Turtle Entertainment, the largest eSports company in the world, and 100% of DreamHack, the largest Scandinavian eSports operator. We now run the leading eSports leagues and events in the world.
These new digital businesses have already grown much faster than expected when we bought them. They doubled their sales to almost SEK 1 billion in 2015 on a pro forma basis.
It is the strength of the MTG culture that has enabled us to move so quickly, and the ambition is to accelerate our sales growth and increase our profits in 2016 and the years ahead. Our strategy is all about creating sustainable value for all of our stakeholders and fulfilling our corporate responsibility.
We have delivered on our commitment to review and optimise our business portfolio. We are allocating our capital to those businesses and products that offer the greatest potential and returns. We acquired a number of digital businesses in 2015, and we also sold some non-core or sub-scale businesses as part of our journey from a traditional broadcaster to become the leading digital video entertainer in each of our markets.
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Turtle Entertainment is the world’s largest eSports company and operates the well-known ESL brand. Turtle’s online leagues and championships, such as ESL One and Intel® Extreme Masters, are among the biggest in the world, featuring top international teams and star players and attracting more than 100 million online viewers. Click to explore.
Zoomin.TV is a global online video entertainment network, content production and advertising sales house. Zoomin is the 5th largest MCN in the world and the largest in Europe, attracting more than 2 billion monthly views. Click to explore.
Splay is the number one online multi-channel video network in Scandinavia and is now expanding internationally. Splay’s content and web stars generate over 200 million monthly views and over 20 million subscribers on its 600 YouTube channels. Click to explore.
DreamHack is Scandinavia’s largest eSports company and organiser of the world’s largest digital festivals and LAN parties – DreamHack Summer and DreamHack Winter in Sweden. DreamHack runs both local and global eSports leagues and championships. Click to explore.
We have also sold Swedish cable TV asset Sappa; our free-TV operations in Hungary; and our Russian & international pay-TV channels businesses. Since the end of the year, we have announced the sale of our Ukrainian satellite TV platform, and are in the process of exiting our 38% ownership in CTC Media.
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