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MTG Q2 lifted by eSports revenue

July 20, 2021

Modern Times Group (MTG) has published its second quarter 2021 interim financial results report. MTG’s gaming vertical delivered a solid quarter driven by the inclusion of Ninja Kiwi and Hutch. The eSports vertical – in parallel with its accelerated investments ahead of an expected normalised 2022 – reported a return to positive revenue growth driven by O&O and ESS development. Net sales for the Group increased by 15 per cent at constant currencies

MTG’s Group President and CEO, Maria Redin, commented: “Our work to further diversify our gaming vertical through strategic M&A has continued […] Operationally, our live games have continued to perform well. Gaming revenues increased by 14 per cent at constant currencies. The performance was driven by the inclusion of Hutch and Ninja Kiwi with organic sales growth being impacted by tough comparisons. We expect this trend to continue into Q3. Despite the continued impact of the pandemic, our eSports revenues increased by 18 per cent at constant currencies. We maintained a successful online schedule for eSports tournaments, with a strong fan reception and continued commitment from our partners.”

Operational Highlights

  • The gaming vertical delivered a solid quarter driven by good monetisation and the inclusion of Ninja Kiwi, a leader in the tower defense genre
  • The eSports vertical returned to positive revenue growth, driven by robust development for both O&O and ESS. ESL Gaming hosted six digital-only Master properties and successfully produced another season of Gamers Without Borders
  • MTG continued to deliver on its Buy & Build strategy in the gaming vertical and announced the acquisition of PlaySimple, a rapidly growing, highly profitable Indian gaming studio and a global leader in the mobile word games genre. On a pro forma basis, the gaming vertical had net sales of SEK 1,169 million (€114m) with organic growth of 8 per cent in the second quarter
  • MTG maintained a high level of strategic investments in its esports product portfolio and B2C platforms to strengthen its position and diversify its current offering ahead of a return to live-audience events, which is expected to take place by the end of 2021

Financial highlights

  • Net sales increased by 9 percent to SEK 1,198 (1,096) million or 15 per cent at constant currencies. Organic growth amounted to -3 percent
  • Adjusted EBITDA of SEK 155 (167) million. Adjustments included long-term incentive programs (LTI) of SEK 25 (60) million and total M&A transaction costs of SEK 16 (3) million
  • EBITDA of SEK 114 (104) million and EBIT of SEK 12 (31) million
  • Net income of SEK -11 (-19) million and basic earnings per share, before dilution, of SEK -0.25 (-0.89)
  • Cash balance of SEK 1,229 (1,571) million

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