Modern Times Group MTG AB
STO:MTG B
Modern Times Group MTG AB
Modern Times Group MTG AB engages as an entertainment company. The company is headquartered in Stockholm, Stockholm and currently employs 1,247 full-time employees. The firm operates in two segments: Esport and Gaming. The Esport segment is made up of ESL, Dreamhack and MTG VC-fund’s investments in esport related companies. Through ESL and Dreamhack,the Company operates national and international tournaments as well as grassroots amatuer cups, leagues and festivals. The Gaming segment is made up of InnoGames, Kongregate and MTG VC-fund’s investment in gaming-related companies. InnoGames is publisher of mobile and on-line games. InnoGames’ complete portfolio encompasses seven live games and several mobile titles in production. InnoGames is focused on the free-to-play segment and provides players with a cross-platform experience on PC and mobile devices. Kongregate is mobile game publisher and developer. The firm operates worldwide.
Modern Times Group MTG AB engages as an entertainment company. The company is headquartered in Stockholm, Stockholm and currently employs 1,247 full-time employees. The firm operates in two segments: Esport and Gaming. The Esport segment is made up of ESL, Dreamhack and MTG VC-fund’s investments in esport related companies. Through ESL and Dreamhack,the Company operates national and international tournaments as well as grassroots amatuer cups, leagues and festivals. The Gaming segment is made up of InnoGames, Kongregate and MTG VC-fund’s investment in gaming-related companies. InnoGames is publisher of mobile and on-line games. InnoGames’ complete portfolio encompasses seven live games and several mobile titles in production. InnoGames is focused on the free-to-play segment and provides players with a cross-platform experience on PC and mobile devices. Kongregate is mobile game publisher and developer. The firm operates worldwide.
Plarium Acquisition: MTG completed the transformative acquisition of Plarium, strengthening its game portfolio and proprietary tech stack.
Strong Revenue Growth: Reported Q1 net sales of SEK 2.6 billion, up 77% YoY due to the Plarium consolidation, with 6% organic growth from original studios.
Profitability: Delivered a 24% operating margin and SEK 660 million in adjusted EBITDA, maintaining profitability despite high user acquisition spend.
Cash Flow: Generated SEK 143 million in free cash flow and maintained a healthy 56% cash conversion, though lower than last year due to working capital swings and tax payments.
Guidance: MTG guided for 3% to 7% organic revenue growth for original studios and a full-year adjusted EBITDA margin of 21% to 24%, including Plarium.
User Acquisition: User acquisition spend increased to 38% of revenues, mainly driven by scaling new games and geographic expansion.
Synergies & Strategy: Management is optimistic about commercial synergies from the Plarium deal but will provide more details at the Capital Markets Day later in the year.
