MTG lifted by eSports, sells Zoomin
October 29, 2019
Modern Times Group (MTG) has published its Q3 2019 financial results. The company said it “continues to deliver on its strategic direction, reporting seasonally robust operational development for the quarter”.
eSports accounted for 1.52 billion SEK (€140 million) of the firm’s 4.02 billion SEK net sales for the three months ended September 30th. “The third quarter 2019 showed a high level of activity with important initiatives taken to professionalise the commercial part of eSport through agreements and partnerships formed and previously announced. Our eSport sales grew by 12 per cent, driven by improved performance in our Master properties and strong revenue development for sponsorship,” said President and CEO Jørgen Madsen Lindemann.
“The gaming vertical had a solid performance impacted by sequential seasonality in Q3 2019, namely the timing of bigger in-game events, and investments in marketing. However, the underlying operational development was positive with ARPDAU increasing by 7 per cent year-on-year in constant currencies,” added President and CEO Jørgen Madsen Lindemann.
MTG is reportedly exploring the possibility of an IPO as it seeks to grow its gaming business. The company is already listed on Nasdaq Stockholm, but is now considering an IPO in the US.
Meanwhile the Group has sold Zoomin, its Gen Z digital production outfit, to Azerion, a Dutch-based media and entertainment technology company. The business has sales of under €5 million and significant losses. MTG only upped its stake to 100 per cent in the digital video network a year ago – it bought its first 49 per cent in 2015 for €45 million.