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A year in review the TV 2 Group

Alf Hildrum, Managing Director of the TV 2 Group, about the year 2010.

How would you describe 2010?

2010 was a year of major contrasts for TV 2. In terms of operating profit, 2010 was TV 2's best financial year ever. We increased our advertising market share in the second half of the year, and contributed to growth in revenue and operating profit. We also recorded significant growth on new media platforms. However, our main channel is still losing market shares. Competition for viewers has become much fiercer, and, as in other Scandinavian markets, viewers are becoming dispersed across numerous channels. To meet this challenge, we have successfully launched a new advertising channel targeted at women and younger viewing audiences. We also acquired the broadcasting rights to the three upcoming Premier League seasons, and the project got off to a promising start. Despite the drop in viewing figures on the main channel, we did extremely well on the news front, covering major news stories on important social issues in the Norwegian media.

What was your greatest challenge in 2010?

Our main challenge was dealing with the consequences of the sweeping cost-cutting measures implemented in 2008 and 2009. I am impressed at the way employees tackled their tougher working days, but the process has taken its toll on the organisation. We have therefore taken some serious steps to improve the working environment and teamwork at TV 2, which I hope will produce results this year.

What are your expectations for 2011?

We are working intensively to curb the downturn in the main channel, which may be our biggest challenge this year. The advertising business is continuing its upward trend, giving us reason to believe that our financial results will be fairly good in 2011 as well. I am also expecting sustained growth in new media platforms. We have launched a number of apps and are laying the groundwork for a breakthrough in mobile terminals. Soon 25 % of Norwegians will have access to iPads and other media tablets, and media consumption will grow rapidly. TV 2 must keep pace, almost exclusively through pay services. We also expect to see an increase in income streams from customers on new platforms.