MTG publishes Q1 2020 January-March Financial Results

April 28 2020

STOCKHOLM, April 28th 2020 — Modern Times Group MTG AB (MTG) today publishes its Q1 2020 financial results report.

“Government policies to contain the spread of the pandemic have had a negative impact on MTG’s esports vertical, which is built around large live events with media rights, brand partnerships and many attending fans who purchase tickets and merchandise. However, our work to further commercialize esports has continued in the quarter,” MTG’s President and CEO Jørgen Madsen Lindemann states in the report

“The gaming vertical has proven to be more resilient to the impact from the Coronavirus pandemic. Our products have rather than being negatively impacted, seen an accelerated inflow of new users towards the end of the quarter. In particular InnoGames experienced this trend, ending March with a close to record high DAU,” he continues.

MTG’s Q1 financial report highlights follow below. For the full report please see the attached file or www.mtg.com.

Continued push on the strategic agenda

  • Despite being impacted by the Coronavirus pandemic the esport vertical quickly adapted and ensured business continuity by rescheduling events and moving the Pro Tour online and delivering record viewership in the quarter
  • The esport vertical continued to deliver further on the strategic agenda by signing the “Louvre” agreement with the best CS:GO teams in the world, and announced strategic agreements with Blizzard Entertainment, and PUBG Mobile
  • The gaming vertical showed more resilience towards the Coronavirus pandemic impact in the quarter, with InnoGames in general and Forge of Empires in particular delivering quarter over quarter increasing Average Daily Active Users (DAU), ending the period close to an all-time high DAU

Q1 2020 financial highlights

  • Net sales decline by 2 percent to SEK 924 (940) million
  • Adjusted EBITDA of SEK -21 (37) million, including adjustments for Items Affecting Comparability (IAC) of SEK 3 (54) million, Long-term incentive (LTI) programs of SEK 32 (25) million and M&A transaction costs of SEK 13 (-) million
  • EBITDA of SEK -69 (-42) million
  • Operating income (EBIT) of SEK -142 (-110) million
  • Net income from continuing operations of SEK -132 (-133) million
  • Basic earnings per share of SEK -2.38 (-2.45)
  • Net cash flow from operations of SEK -39 (-102) million

Financial overview

(SEKm) Q1 2020 Q1 2019 Full year 2019
Continuing operations
Net sales 924 940 4 242
of which esport 299 336 1 712
of which gaming 625 604 2 531
of which central operations and eliminations 0 1 0
Costs before depreciation and amortization -993 -982 -4 352
Adjusted EBITDA 1) -21 37 239
Adjusted EBITDA margin -2% 4% 6%
Adjustments -48 -79 -349
EBITDA -69 -42 -109
Amortization -50 -44 -202
Depreciation -22 -24 -96
of which PPA -31 -30 -120
EBIT -142 -110 -407
EBIT margin -15% -12% -10%
Net income -132 -133 -458
Basic earnings per share (SEK) -2,38 -2,45 -8,19
Discontinued operations 2)
Net income 0 13 597 14 852
Total operations
Net income -132 13 464 14 394
Basic earnings per share (SEK) -2,37 200,24 212,44
Net cash flow from operations -39 -102 -188
CAPEX 42 37 239
Net sales growth y-o-y
Organic growth -6% 3% 7%
Acquisitions/divestments -1% -1%
Changes in FX rates 4% 6% 4%
Change in reported net sales -2% 7% 10%
  1. See page 22 for details of adjustments to EBITDA. Alternative performance measures used in this report are explained on page 24
  2. Consists of the adjusted result for NENT, Nova and Zoomin in 2019

Shareholders information

Financial calendar

Financial Report Q1  April 28th 2020
Annual General Meeting  May 18th 2020
Financial Report Q2 July 23rd 2020
Financial report Q3 November 4th 2020
Capital Markets Day October 9th 2020

Conference call
MTG AB will hold a conference call at 3.00pm CEST which will be hosted by President & CEO Jørgen Madsen Lindemann and CFO Maria Redin. 

Dial in details:

Sweden +46 850 692 180
UK: +44 844 571 8892
US: +1 631 510 7495

The access pin code for the call is 675 72 09

To listen to a streamed webcast – listen only – of the conference call visit:
https://edge.media-server.com/mmc/p/xmoju5ah

This information is information that MTG (Modern Times Group MTG AB (publ.)) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 02.00pm CEST on April 28th 2020.

For more information:
Lars Torstensson, EVP Communications & Investor Relations
Direct: +46 (0)702-734 879, lars.torstensson (at) mtg.com

Oliver Carrà, Public Relations Director
Direct: +46 70 464 44 44, oliver.carra (at) mtg.com

Reach us: communications@mtg.com
Download high-resolution photos: Flickr
Follow us: mtg.com / Twitter / LinkedIn

***

About MTG
MTG (Modern Times Group MTG AB (publ.)) (www.mtg.com) is a strategic and operational investment holding company in esports and gaming entertainment. Born in Sweden, the shares are listed on Nasdaq Stockholm (‘MTGA’ and ‘MTGB’).

Q1 2020 January-March Financial Results

We use cookies to analyse our traffic and render this website more user friendly.
×