MTG “regains footing” in pandemic
February 25, 2021
Modern Times Group (MTG), the digital entertainment company, has published its Q4 2020 financial results report.
Net sales declined by 9 per cent to SEK 1,064 million (€105.7m) with a negative impact of foreign exchange rates of 6 per cent. Organic Net sales declined by 3 per cent.
“MTG continues to show solid operational performance and high profitability as we report our final figures for the full year and Q4 2020, a challenging but transformative year for the company,” said Group President and CEO Maria Redin writes in the report CEO Letter.
Maria Redin added: “While we were rocked when the pandemic hit society – and us as part of it – in February 2020, we quickly regained our footing thanks to the impressive and hard work from all our people within the group. We’ve remained focused and confident, while we’ve dared to turn every stone to ensure business continuity. As a result, we stand stronger as a group now than what we did one year ago.”
Full year conclusions:
- The gaming vertical delivered a solid quarter and concluded a record year both in terms of net sales and adjusted EBITDA. The positive performance in the quarter was driven by high user engagement leading to growing Average Revenue Per Daily Active User (ARPDAU) as a result of maintained successful in-games campaigns for the InnoGames portfolio
- The esport vertical delivered six Master properties in the quarter, leading to a sequential recovery in net sales. This, combined with good cost control and improved revenue mix, resulted in the esport vertical delivering positive Adjusted EBITDA result for the first time
- In the quarter, MTG increased its ownership in InnoGames to 68 percent, consolidated its gaming investments in a new gaming holding company (“GamingCo”) and acquired Hutch Games, a market leader in mid-core mobile racing games. The transactions resulted in a 77.35% ownership in GamingCo.