STOCKHOLM, Sweden, Aug. 22, 2005 (PRIMEZONE) -- TV4 is to implement a series of extensive investments and measures to cement its position as Sweden's leading commercial TV company. By continuing to offer a wide range of programmes and services, TV4 will remain ahead of the growing competition in the digital TV market, which will be fully established by 2008.
-- Cost savings of approximately SEK 230 million, most of which
will have been implemented by the end of the year
-- Aggressive programme investments on all channels, more local
TV and investment in tv4.se
-- Establishment of TV4 Fakta in Finland
-- Strengthening of joint operations with TV2 in Norway and
MTV3 in Finland on sale of in-house productions
TV4 has decided to cut costs so as to improve profitability and thus allow aggressive programme investments on all of its channels. These will include major entertainment events, Swedish and foreign drama productions, sport, films, current affairs programmes and news. We are also examining the possibility of investing in expansion of our multi-channel system and establishing new channels in the Nordic region.
"We are moving forward from a position of strength, with improved profitability and growth in our new channels and operations. But we must become still more profitable so that we can adopt a pro-active approach to our range of programmes and new channels. Our new action plan is designed to consolidate our position as Sweden's leading commercial TV company," says Jan Scherman, Managing Director of TV4.
TV4 Group costs are to be cut by SEK 230 million. As a consequence, there will be some 150 redundancies throughout the company. Most of this rationalisation process will be completed by the end of 2005. These economies will involve a one-off cost to be charged to third-quarter earnings.
In addition to the overhaul of all departments and operational divisions, work has begun on reducing distribution costs and the cost of leasing premises. Fringe benefits are being reviewed and investments are being made in new technology to rationalise operations.
More local TV and network investments
TV4 national television will be increasing its transmissions and rationalising its operations. In January 2006 the Nyhetsmorgon breakfast show will be renamed Nyhetsmorgon med lokal-tv. Local broadcasts will be given more airtime on the programme, with half an hour of news from 9.00 am every weekday morning. As before, there will also be local news broadcasts at 6.35 am, 7.35 am, 8.35 am och 9.35 am. The 6.05 pm local TV slot will be discontinued, to be replaced by a slot on the 7.00 o'clock evening news. The final local news broadcast of the day will continue to be at 9.55 pm.
TV4 Vision, which will be conducting a major campaign on tv4.se in October, involving more daytime news, and more entertainment and information in the evening, will also be undergoing changes, resulting in a lower cost base.
Closer Nordic cooperation
September 15 sees the launch of TV4 Fakta, a channel specialising solely in modern documentaries. The channel will be broadcasting a unique range of captivating documentaries and factual series from around the world, meeting the wishes expressed by increasing numbers of viewers. TV4 Fakta will be established in a number of Nordic countries and will be based in Finland, from where the channel will be transmitted.
TV4 och TV2 Norway will be setting up a joint venture -- Nordic World -- to manage sales of the companies' in-house productions. MTV3 Finland productions will also be sold via the new company, which will be based in Oslo. Medicinmannen, a TV4 production, was recently sold to ARD of Germany for several million swedish kronor.
New management structure
In addition, a number of changes will be made to TV4's management structure. A new management team is to be appointed to manage Group strategy, working in tandem with a small operational management team. Programme management and sales management will form a joint management team, which will more effectively unite programme operations with sales.
For more information please contact Goran Ellung, Information Director at TV4, +46 70 583 4260.
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