In this monthly Best of Nordics feature, S&P Global Market Intelligence provides a roundup of recent market developments in Denmark, Sweden, Norway, Finland and Iceland.
TOP NEWS
* TDC A/S on May 14 announced that CEO Pernille Erenbjerg will resign by the end of the year. In a statement, Erenbjerg said that she is leaving as the group's new owners are embarking on a new strategy and plan to split the company into different units. TDC will further change its board, according to a press release. On the suggestion of new owners DK Telekommunikation ApS, the majority of board members steps down, to be replaced by five new members, with Mike Parton as temporary chair.
* Warner Music Group Corp. sold nearly 75% of its Spotify Technology SA equity for about $400 million. Speaking during the company's May 7 earnings call, Warner Music Group CEO Stephen Cooper said the sale has nothing to do with the company's view of Spotify's future.
* In addition, Sony Corp. has made about $750 million from selling half of its shareholding in Spotify Technology, the parent company of Spotify AB, Music Business Worldwide reported May 1. Before Spotify went public April 3, Sony Music Entertainment Inc. owned 5.707% of its stock. The company sold 17.2% of these shares during Spotify's first day of trading on the NYSE, reportedly generating $260 million.
M&A
* Modern Times Group has completed the sale of its 75% stake in media entertainment management company Trace Partners SAS to TPG Growth for €30 million. MTG on May 15 said the sale reflects the company's ongoing transformation, and that it will result in a preliminary net capital gain of 58 million kronor.
* Nokia Corp. on May 2 announced that it has entered into exclusive negotiations for the sale of its digital health business, Withings, to the latter's co-founder, Éric Carreel. The Finnish company said in February that it would review strategic options for its Digital Health business, which manufactures Nokia's smartwatches and digital health devices. The planned sale is part of Nokia's goal of becoming a business-to-business and licensing company.
* Sandvik AB on April 27 said it plans to acquire French software company Metrologic Group from Astorg Partners for €360 million. The Swedish buyer said the acquisition will broaden its Sandvik Machining Solutions' offerings in digital manufacturing. Metrologic will maintain its brand independence and will become a business unit within Sandvik Machining.
OTHER NEWS
* Xiaomi Corp. has struck an agreement with Hong Kong conglomerate CK Hutchison Holdings Ltd., according to a May 3 statement. Initially, Xiaomi products will be available at 3 Group's stores, including in Denmark and Sweden.
* Spotify Technology in its first quarterly report as a public company saw a 26% year-over-year boost in revenue and a contracted profit loss as monthly active users grew 30% to 170 million. The company also reported 45% growth in premium subscribers to 75 million for the quarter ended March 31.
* Spotify Technology also saw its average revenue per user decline by 14% year over year in the first quarter as new promotional efforts attracted more subscribers but reduced the amount that many paid for the music streaming service. New, lower-cost family and student plan promotions helped decrease premium-member churn, the number of subscribers cycling out of the product during the period, to 4.7%, "an all-time historic low," CFO Barry McCarthy said on a May 2 conference call following the earnings release.
* Nokia on April 26 said its reported net loss attributable to the equity holders of the company narrowed by 26% year over year to €351 million in the first quarter from €473 million in the year-ago period. The diluted loss came in at 6 cents per share in the quarter, compared with 8 cents per share a year ago.
* Swedish mobile equipment maker Ericsson on April 20 reported a lower net loss for the first quarter compared to a year ago as its gross margin improved, sending the stock 20.16% higher to 66.76 kronor as of 4:16 p.m. Swedish time. The company reported net loss attributable to shareholders of the parent company of 837 million kronor, or 25 öre per share, for the first quarter, down from a net loss of 10.07 billion kronor, or 3.08 kronor per share, in the first quarter of last year.
