Financial results for the fourth quarter
The market value of the Group's securities in Major Listed Holdings amounted to SEK 24,085 million on 31 December, a decrease of SEK 6,521 million corresponding to 21% since 30 September 2008. Korsnäs' revenue amounted to SEK 1,668 million (1,821) and operating loss was SEK 138 million (profit of 7), including restructuring charges of SEK 71 million (0). The declining result is primarily explained by weakening demand resulting in prolonged production stoppages during the fourth quarter. The Group's total revenue amounted to SEK 1,796 million (1,873) and operating loss was SEK 180 million (loss of 5). Result after financial items, including changes in fair value of financial assets, amounted to a loss of SEK 6,970 million (profit of 6,595). The loss per share was SEK 26.11 (profit of 25.18).
Events during the fourth quarter
Production stoppages in Korsnäs were prolonged due to a weakening business environment, and Korsnäs announced a profit enhancement program with the purpose to return to an operating margin above 10% when fully implemented. The share buy-back programme was completed and on 31 December the number of repurchased shares amounted to 3,500,000 Class B shares that had been bought at an average price of SEK 79.68, totaling SEK 279 million. In December, Kinnevik divested its investment in the African pay-TV company Gateway Broadcasting for USD 23.6 million. The GTV investment generated an IRR of 40%.
Financial results for 2008
The market value of the Group's securities in Major Listed Holdings decreased by SEK 24,977* million, corresponding to 49% *. Korsnäs' revenue amounted to SEK 7,396 million (7,519) and operating profit was SEK 429 million (836) including restructuring charges of SEK 71 (0) million. The operating margin was 6.7% (11.1%) excluding restructuring charges. The Group's total revenue amounted to SEK 7,719 million (7,673) and operating profit was SEK 398 million (885). Result after financial items, including changes in fair value of financial assets, amounted to a loss of SEK 25,872 million (profit of 16,266). The loss per share was SEK 97.94 (profit of 61.29). The Board proposes that the Annual General Meeting decide on an unchanged cash dividend amounting to SEK 2.00 (2.00) per share.
Events after the end of the reporting period
In February 2009, Metro announced the intention to raise approximately SEK 550 million in new financing by issuing debentures and warrants. The issue is fully underwritten by Kinnevik.
* After deduction of dividends received.