MTG record Q4 revenue; eSports boost

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Modern Times Group (MTG) has released its Q4 2019 and full year financial results showing record sales in the fourth quarter while making progress on its strategy to become even more commercial and product relevant in esport and gaming.

“Throughout 2019, we have continued to develop our business verticals – esports and gaming – with an emphasis on becoming even more commercial and product relevant. As a result, we have seen both increased sales to record high levels, and improved operational performance.” said President and CEO Jørgen Madsen Lindemann.

“From a strategic and product perspective, additional important milestones have been achieved: we have launched the ESL Pro Tour format attracting the best teams in the world, added and grown mobile esport and landed new publisher relationships including a new multi-year agreement with Blizzard,” he added.

  • Esports sales were up 15 per cent, with O&O growing by 21 per cent, supported by investments into sport games and one additional Master property compared with Q4 2018
  • Strong sales growth for the gaming vertical, supported by a continued operational recovery in Kongregate and solid development for InnoGame’s Forge of Empires. ARPDAU increased by 14 per cent in constant currencies compared with corresponding period last year
  • MTG VC fund invested SEK 14 million in two growth companies

Q4 2019 financial highlights

  • Net sales growth of 15 per cent to SEK 1,163 (1,009) million
  • Adjusted EBITDA of SEK 84 (43) million, including adjustments for Items Affecting Comparability of SEK 98 (-18) million, impairment of own capitalized costs of SEK 93 (4) million, Long-term incentive (LTI) programmes of SEK 11 (4) million and M&A transaction costs of SEK 5 (12) million
  • EBITDA of SEK -123 (40) million, of which SEK 11 million due to the impact of IFRS 16
  • Operating income (EBIT) of SEK -206 (-18) million
  • Net income from continuing operations of SEK -207 (-66) million
  • Basic earnings per share of -3.08 (-1.25)
  • Total net income of SEK -367 (478) million
  • Cash flow from operations of SEK -34 (594) million

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